The UAE’s Federal Tax Authority (FTA) has announced a grace period from January 1, 2024, to March 31, 2025, allowing businesses to update their tax records without incurring administrative penalties. The initiative is part of efforts to ease the tax burden and improve business compliance under Cabinet Decision No. 74 of 2023.
The grace period applies to companies that failed to notify the FTA of changes to key information such as business names, addresses, trade licenses, legal entity types, partnership agreements, and the nature of their operations. The FTA requires updates to be submitted within 20 business days of any change, following its approved process.
Penalties issued between January 1, 2024 and the implementation of the grace period will be automatically reversed, with no action required by registrants.
The FTA encouraged businesses to access its public clarification on the grace period via its official website for further details. The public clarification guides updating tax records and complying with federal tax regulations.
