The UAE Federal Tax Authority introduced significant reforms to the tax system earlier last week in a move designed to ease compliance and encourage businesses to correct previous errors.
Officials, noticeably Sara Al Habshi – Executive Director of Tax Compliance at the Federal Tax Authority – said in a interview that everyone can benefit from SMEs to multinational firms, as reforms touch on violations of record keeping, late payment of penalties, and errors spanning deduction to tax returns (DubaiEye).
The FTA has reduced the violation concerning failure of submitting records for submitting tax records from Dh 20,000 to Dh 5,000 whilst provisions of tax records, when there are changes in business operations, is now just Dh 1,000.
Repetition of this violation is now just Dh 5,000, down from Dh 10, 000.
The reforms became effective 14 April 2026.
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