The UAE Federal Tax Authority (FTA) has introduced a grace period to assist businesses in fulfilling their tax obligations.
The initiative allows tax registrants, who haven’t updated their records from January 1, 2024, to March 31, 2025, to make necessary adjustments without facing administrative penalties.
The Cabinet’s decision offers a refund of penalties for those who update their records within this period, as per the Penalty Refund Procedures in Cabinet Decision No. (105) of 2021. This aligns with the Executive Regulation of Federal Decree-Law No. (28) of 2022, which requires registered taxpayers to notify the FTA of any changes in their registered information within 20 working days.
“The Cabinet Decision provides an opportunity for registrants who have fallen behind on their obligations to update their tax records to do so during the specified grace period,” said Khalid Ali Al Bustani, Director General of the FTA.
“This allows them to avoid administrative penalties associated with failure to notify the Federal Tax Authority of any cases that call for an update of their tax records submitted to the Authority’s system.”
The FTA encouraged businesses to take advantage of this grace period to update their records, thereby reducing the tax burden and enhancing their contribution to economic growth.
