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UAE reduces penalties for various tax law violations
UAE- May 29, 2021:
The Federal Tax Authority (FTA) announced a relief to businesses by reducing penalties to facilitate them in filing an accurate tax return.
Sixteen types of administrative penalties for violation of tax laws in UAE have either been reduced or had the method of calculation amended under the latest initiative in line with Cabinet Decision No. 49 of 2021. The decision is designed to support tax registrants and help them fulfill their tax obligations.
Khalid Ali Al Bustani, director-general of FTA, said the new amendment will become effective on June 28, 2021, and will reduce many administrative penalties imposed for violating tax laws. He said late payment penalty will not be imposed on voluntary disclosures if payment is settled within 20 business days of submitting the voluntary disclosure.
“This comes as part of the wise leadership’s directives to implement the tax system according to the best standards that ensure further growth for the national economy and help achieve transparency and economic momentum. This provides a resilient tax legislative environment that encourages self-compliance and keeps pace with change through constant issuance of decisions in accordance with phased requirements,” Al Bustani said.
The FTA director-general called on tax registrants to take advantage of the important benefits provided by the new amendment as it provides more relief to business sectors in order to support their effective contribution to boosting the national economy’s growth.
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