The Federal Tax Authority (FTA) is calling on businesses and individuals in the UAE to take advantage of a newly announced grace period to update their tax records without facing penalties. The initiative, approved by the UAE Cabinet, aims to ease the tax burden on the business sector, encourage compliance and strengthen the UAE’s competitiveness for business.
The grace period allows registrants to update their tax records during the period of 1 January 2024 to March 2025, without incurring administrative penalties for failing to report changes. This includes updates to business names, addresses, trade licence activities, legal entity types and other key details. Importantly, any penalties imposed between 1 January 2024 and the start of the grace period will be automatically reversed—no action is required from taxpayers.
Key Points To Know:
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No penalties during grace period: Update your tax records by 31 March without facing fines for late reporting.
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Automatic reversal of penalties: If penalties were applied between 1 January 2024 and the start of the grace period, they will be reversed automatically.
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What needs updating: Ensure details like business name, address, email, trade licence activities and legal entity type are current.
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Stay informed: For more details, visit the FTA’s official website and access the Public Clarifications service at https://tax.gov.ae/en/.
Don’t miss this opportunity to update your records and stay penalty-free.