The Ministry of Finance (UAE MoF) and the Federal Tax Authority (FTA) have announced a Cabinet Decision introducing an initiative to waive administrative penalties for corporate taxpayers and specific exempt individuals who did not submit their tax registration applications to the FTA within the designated timeframe.
To qualify, eligible parties must file their tax return or annual statements within a period not exceeding seven months from the end of their first tax period, as stipulated under the Corporate Tax Law.
According to the statement, the Cabinet’s decision reflects the proactive approach of the UAE MoF and the Federal Tax Authority to enhance tax compliance. It encourages registrants to file tax returns or annual statements before the deadline, bolstering early compliance with legal requirements.
Additionally, the FTA confirmed that necessary procedures will be implemented to refund administrative fines collected from those who meet the specified criteria.
UAE MoF-FTA commitment to support taxpayers
The initiative reaffirms the continued commitment of the UAE MoF and the Federal Tax Authority to enhancing the tax compliance environment in the Emirates, facilitating procedures, and easing financial burdens on businesses.
It aims to enable taxpayers to meet their obligations smoothly and benefit from the exemptions, provided they file their tax returns or annual declarations within the prescribed time-frame.
The decision is expected to significantly support the UAE’s ongoing effort to ensure better compliance during the first year of corporate tax implementation.
Further, it underscores the government’s commitment to supporting national businesses by providing incentives that encourage voluntary compliance, reduce administrative and financial burdens associated with tax registration, and further strengthen the UAE’s standing across global competitiveness indices.
