Grace Period To Update Information in Tax Records

GRACE PERIOD ( Starting on 1 January 2024 & Ending on 31 March 2025)

Registrants are required to inform the Federal Tax Authority within 20 business days of the occurrence of any event that might require the amendment of information related to their tax records kept by the FTA. Failing to comply it, attracts the administrative penalties.

A grace period is implemented to encourage the registrants to update their records with the FTA, in which registrants will not be imposed administrative penalties that update the information during the grace period starting on 1 January 2024 and ending on 31 March 2025.Administrative penalties already imposed for failing to update information by the registrants during the period from 1 January 2024 until the implementation of the grace period will be reversed.

Registrants are not required to contact the FTA to obtain a reversal of the administrative penalty, as this will be done automatically.

Where the registrants have settled the administrative penalty, the result of the reversal is that the reversed administrative penalty amount (refund) shall be added back to the persons’ tax account within 90 days from the decision to approve the refund of the administrative penalties.

Registrants are required to inform the FTA of any event that might require the amendment of information related to their tax record kept by the FTA, including the following changes:Name, address and email address.

Trade license activities.
Legal entity type, partnership agreement for unincorporated partnerships and articles of association or its equivalent.
Nature of the business of the registrant.
The address from which any business is conducted by the registrant.
New trade license of the newly opened branch.
Change in business address.
VAT/Excise Tax registered person to update records within the prescribed timelines before attempting to register for Corporate Tax.
Registering for Corporate Tax with the incorrect details and failing to correct the information within the prescribed timelines

Failure of the registrant to inform the Authority of any circumstance that requires the amendment of the information pertaining to its tax record kept by Authority is:

Failure of the person to inform the Authority of any case that may require the amendment of the information pertaining to his tax record kept by Authority is:

AED 1,000 for each violation
AED 5,000 in each case of repeated violation within 24 months from the date of the last violation