The Federal Tax Authority (FTA) has introduced a new initiative offering a grace period to businesses that have failed to update their tax records.
This decision, effective from January 1, 2024, until March 31, 2025, allows tax registrants to make necessary updates without incurring administrative penalties.
The initiative, issued by the Cabinet, grants businesses the opportunity to correct their tax information and avoid penalties for failure to notify the FTA of changes in their records. For those who have already paid penalties during the grace period, these fees will be refunded in accordance with Cabinet Decision No. (105) of 2021.
The FTA emphasized that, under Cabinet Decision No. (74) of 2023, businesses are required to update their tax records within 20 working days of any change in their information. This includes changes to the business name, address, legal form, or the nature of business activities.
Khalid Ali Al Bustani, Director General of the FTA, highlighted that this move is in line with the leadership’s commitment to fostering a flexible and transparent tax system. It is designed to ease compliance for businesses, reduce administrative burdens, and enhance the UAE’s competitiveness in the global market.
The FTA encourages businesses to use the grace period to ensure their tax records are up-to-date, helping them avoid penalties and stay in line with tax laws. For further information, businesses can access detailed clarifications through the FTA’s official website.
News Source: Emirates News Agency
