Abu Dhabi, UAE—The Federal Tax Authority (FTA) has called on registered taxpayers to benefit from the decision to re-determine administrative penalties on taxes, which are 30 percent of the total outstanding amount of penalties that were not paid before 28 June 2021.
They have also been asked to ensure they meet the conditions set out in the Cabinet Decision on re-determining administrative penalties imposed on tax law violations in the UAE.
Eligible taxpayers must complete all related procedures through the e-services portal on its official website before 31 December 2022 to be able to benefit from these facilities.
In a press statement issued today, the Authority explained that according to the relevant Cabinet Decision, which went into effect on 1 January 2022, registered tax payers who were unable to meet the criteria for benefiting from the re-determination by 21 December 2021 will be able to apply for re-determining administrative penalties to be equal to 30 percent of the total outstanding fines by fulfilling the necessary conditions no later than 31 December 2022.
To avail the benefits, the administrative penalty must be imposed under Cabinet Decision No. (40) of 2017 before 28 June 2021, and remain outstanding. Second, the tax registrant needs to have settled all due Payable Tax by 31 December 2021. And third, they must have paid 30 percent of the total unsettled administrative penalties due until 28 June 2021 no later than 31 December 2022.
The Authority said that should the registrant meet all conditions, the new value of the penalties will be equal to 30 percent of the total unpaid penalties, which will appear on the registrant’s account in the FTA’s e-Services system after 31 December 2022.