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The FTA stated that this free initiative will enhance the UAE’s global commercial competitiveness.
The Federal Revenue Service (FTA) said on Tuesday that according to a recent cabinet decision, people who violated the UAE’s tax laws could benefit from 30% of the fines they never paid.
The FTA stated that this freedom initiative will enhance the UAE’s global business competitiveness by establishing a tax legislation environment that encourages self-compliance and provides important support to the national economy.
The provisions of Cabinet Decision No. 49 of 2021 on the amendment of Cabinet Decision No. 40 of 2017, outline 16 administrative penalties for reducing or modifying the calculation method. The amendments include the application of the 2017 Federal Tax Procedure Law No. 7 of 2017, the 2017 Federal Law No. 7 on consumption tax and the 2017 Federal Law No. 8 on administrative violations of value-added tax.
As part of ongoing awareness-raising efforts, the Free Trade Agreement launched an awareness-raising campaign in May last year. FTA representatives communicated with the business community and introduced the implementation mechanism of the new decision, the convenience it provides to registrants, how to benefit from these conveniences, and the administrative penalty imposed on registrants was re-established as 30 total unpaid fines Percentage.
In a press statement, the FTA outlined a series of conditions that need to be met in order to benefit from the redefined penalties.
“First of all, administrative penalties must be implemented in accordance with Cabinet Decision No. 40 of 2017 before June 28, 2021, and the due administrative penalties will not be fully settled until June 27, 2021. In addition, the registrant shall be settled. All due and payable payments shall be taxed before December 31, 2021, and 30% of the total outstanding administrative penalty shall be settled no later than December 31, 2021 before June 28, 2021.”
The FTA stated that if the registrant meets all these conditions, the administrative penalty will be reset to 30% of the total unpaid fines that appeared on the FTA electronic system after December 31, 2021.
Federal agencies urge registrants to use the “payment adjustment type” feature when clearing due payments on the FTA’s electronic service portal. This feature allows taxpayers to allocate amounts based on their payment preferences.
The FTA encourages registrants to ensure that tax returns or voluntary disclosures are submitted before payment.
“If a registrant pays before submitting a tax return or submitting a voluntary disclosure, and there are outstanding administrative penalties in his account, the system will first settle the administrative penalties due because there is no outstanding tax payable in his account. Payment. Time,” it said.
The FTA stated that the taxable person must pay the due and payable tax before the due date to avoid any late payment penalties. In this regard, the FTA clarified that bank transfers may take two to three working days to process the payment; therefore, the deadline must be considered to ensure that the FTA receives the payment before the due date.
issacjohn@khaleejtimes.com
Isaac John
The editorial director of Khaleej Times is a well-connected Indian journalist and economic and financial commentator. He has worked in mainstream journalism in the UAE for 35 years, including 23 years in Khaleej Times. He is a graduate of English major and a graduate of economics major, and has won more than 20 awards. He is widely praised for his real and insightful analysis of global and regional business and economic trends, and is respected for his keen understanding of local business scenarios.
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