FTA calls on registrants to benefit from grace period

The Federal Tax Authority (FTA) has called on registrants who have yet to update their tax records to take advantage of the UAE Cabinet’s decision to grant a grace period, relieving them from administrative penalties.

The government’s decision has been attributed to a desire to help reduce the tax burden on the business sector, encourage people and companies to fulfil their tax obligations.

The FTA stated the Cabinet decision allows registrants to update information held in their tax records during the period from January 1, 2024 to March 31, 2025, without incurring the administrative penalties for failure to inform the FTA of any instance that may require amendments or updates to their tax records.

Where the registrants have been imposed an administrative penalty during the period from January 1, 2024 until the implementation date of the grace period, the imposed penalty will be reversed. The FTA indicated that there is no requirement to contact them as the reversal will be done automatically.

According to the Cabinet Decision No. 74 of 2023 on the Executive Regulations of the Federal Decree-Law No. 28 of 2022 on Tax Procedures, the registrant shall notify the FTA in the form and mechanism approved by it within twenty (20) business days of any change to its data kept with the FTA.

This includes details such as the name and address of the business, email address, trade licence activities, legal entity type, partnership agreements for unincorporated partnerships and articles of association or its equivalent, nature of business, and any address from which the business is conducted by the registrant.

The FTA has encouraged those seeking further clarification to read the public clarification issued on the grace period to update information in tax records, which can be accessed through the Public Clarifications service on the FTA’s official website.

This service aims to keep taxpayers informed about all technical matters related to taxes and taxpayer obligations, offering detailed explanations to simplify these concepts and enable taxpayers to easily comply with tax legislation.