The Federal Tax Authority of UAE extended the grace period until December 31, 2022 for UAE’s tax registrants to get their penalties for violating tax laws redetermined as the earlier deadline for re-determination was December 31, 2021.
On redetermination, the penalties due, shall be equal to 30 per cent of the total unpaid penalties.
The Federal Tax Authority (FTA) specified that those tax registrants who had not met the necessary conditions to take the benefit from the administrative penalties’ re-determination by December 31, 2021. They can do so by ensuring that they should meet all the conditions by December 31, 2022.
There are many conditions specified. Firstly, the administrative penalty should have been imposed under Cabinet Decision No. 40 of 2017 before June 28, 2021, and the full amount due was not settled before June 28, 2021. Secondly, the tax registrant should settle all payable tax by December 31, 2022 (which means that the registrant must not have any tax due at the end of
The tax authority said that should the registrant fulfill these conditions, the administrative penalties will be re-determined to equal 30 per cent of the total unpaid penalties.