The UAE's Federal Tax Authority (FTA) has announced a grace period for taxpayers who are behind on updating their tax registration information, extending until March 2025. This decision aims to assist businesses in fulfilling their tax obligations. The grace period applies to registrants who have not updated their tax records from January 1, 2024, to March 31, 2025. If penalties were paid during this period, they will be refunded, in line with the Penalty Refund Procedures outlined in Cabinet Decision No. (105) of 2021.
The new decision also permits violators to make necessary adjustments and avoid administrative penalties related to failing to inform the FTA of any changes requiring modifications to their tax records. According to Cabinet Decision No. (74) of 2023, registered taxpayers must notify the FTA within 20 working days of any changes to their registered information, including name, address, email, business activity, legal form, partnership agreements, and articles of association, as well as any changes in business nature or address.
Khalid Ali Al Bustani, the FTA's director general, emphasized the importance of the Cabinet Decision, which offers additional facilities for taxpayers and is part of the FTA's efforts to collaborate with businesses to ensure compliance with tax regulations. Al Bustani noted that the decision aligns with the leadership's directives to implement a tax system that ensures transparency and economic momentum, fostering an optimal, flexible tax environment that promotes self-compliance and adapts to changing circumstances.
The FTA director general encouraged taxpayers to take advantage of the new decision, which reduces the tax burden on businesses, enhances their contribution to national economic growth, and boosts the UAE's competitiveness in the business sector. As part of its ongoing awareness efforts, the FTA has provided clarification on the grace period for updating tax record information, accessible through the Public Clarifications service on the FTA's official website.
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