UAE Tax Authority extends grace period for UAE’s Tax Registrants to get their Penalties re-determined for violating Tax Laws

UAE Tax Authority - UAE- Tax Registrants - Penalties re-determined - violating Tax Laws - Taxscan

The UAE Tax Authority has extended the grace period for UAE’s tax registrants to get their penalties re-determined for violating tax laws until December 2022.

The earlier deadline for re-determination was December 31, 2021.

The Federal Tax Authority (FTA) clarified that tax registrants who had not met the necessary conditions to benefit from the administrative penalties’ re-determination by December 31, 2021, can do so by ensuring they meet the conditions by December 31, 2022.

First, the administrative penalty should have been imposed under Cabinet Decision No. 40 of 2017 before June 28, 2021, and the amount due was not settled in full before that date. Second, the tax registrant has settled all payable tax by December 31, 2022 (which means that the registrant must not have any tax due at the end of year 2022). And third, the tax registrant has settled 30 per cent of total unpaid administrative penalties due until June 28, 2021, no later than December 31, 2022.

The FTA said that should the registrant meet these conditions, the administrative penalties will be re-determined to equal 30 per cent of the total unpaid penalties.

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