Grace Period Announced for Tax Registrants to Update Records
This measure is designed to help registrants who may have missed previous updates and enable them to comply with tax regulations efficiently.
The Federal Tax Authority (FTA) has launched a new grace period initiative from January 1st, 2024, to March 31st, 2025, aimed at assisting taxpayers in meeting their obligations and updating their tax records while reducing administrative penalties. This measure is designed to help registrants who may have missed previous updates and enable them to comply with tax regulations efficiently.
According to the FTA, taxpayers must ensure their records accurately reflect current details within the authority’s system, including name, address, business activity, legal structure, and any changes in the registrant’s business location or nature of operations. This can be done through the FTA’s approved forms and channels, with updates to be submitted within 20 working days of any relevant change.
Under the grace period, if penalties were previously imposed on taxpayers for failing to update their tax records and have been paid, these amounts may be refunded. This ensures flexibility and aims to promote a culture of compliance across the UAE’s business landscape.
For guidance, the FTA has made detailed clarifications available through its Public Clarifications service on its official website, providing step-by-step instructions on updating records and complying with tax obligations.
