UAE- June 16, 2021:

The Federal Tax Authority (FTA) has confirmed during its first tax agent virtual session of 2021 that Cabinet Decision No. 49 of 2021 (New Resolution), amending provisions of Cabinet Decision No. 40/2017 (Old Decision) imposed for the violation of Tax Laws in the UAE provides relief as a measure to support businesses and allows the re-determination of unpaid due administrative penalties which were imposed on taxable persons before 28th June, 2021.

The FTA organised the virtual session to introduce the latest developments regarding the tax legislative environment. The session was attended by 268 authorised tax agents, FTA representatives and officials. A detailed presentation on the implementation of the new decision was showcased, in addition to the conditions required to benefit from the new decision.

Cabinet Decision No. 49 of 2021 states three conditions that need to be fulfilled for tax registrants to benefit from the re-determination of unpaid administrative penalties to be 30 percent of the value due on 28th June 2021.

• The first condition is that the administrative penalty must be imposed under Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violating Tax Laws in the UAE before 28th June, 2021, which is the effective date of the new decision, and remain outstanding on such date.
• The second is the tax registrant must settle all payable tax by 31st December, 2021.
• The third is that Tax registrants must pay 30 percent of administrative penalties payable and unsettled by 28th June, 2021, on or before 31st December 2021.

Should the registrant meet all these conditions, the FTA will re-determine (after 31st December 2021) the unsettled payable administrative penalties due on 28th June, 2021, to be equal to 30 percent of such unsettled penalties. This will exonerate the tax registrant from paying the remaining 70 percent and the relief will be applied automatically when the three conditions are fulfilled.

FTA representatives also gave an overview of the 16 violations and administrative penalties which have been amended either in value or in the calculation method. During the session, various queries raised by tax agents about the amendments of administrative penalties were clarified.

Read : FTA releases Cabinet Decision No. 49/2021 – Amendments of Penalties for Violation of Tax Laws in the UAE

Read Also : FTA releases two new Public Clarifications on amendments to administrative penalties and redetermination of some penalties already imposed

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