Abu Dhabi [UAE], July 30 (ANI/WAM): The UAE Ministry of Finance (MoF) today announced the issuance of Cabinet Decision No. (75) of 2023 regarding administrative penalties for violations related to the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law). The Cabinet Decision specifies the administrative penalties that will be imposed by the Federal Tax Authority for violations related to the application of the Corporate Tax Law, effective as of August 1, 2023.
The Corporate Tax Law Penalties have been carefully designed and benchmarked to ensure successful implementation and compliance of the Corporate Tax Law without burdening UAE businesses that comply with the new regulations.
Younis Haji Al Khoori, Under-Secretary of the Ministry of Finance, said, “Adhering to Corporate Tax compliance is a responsibility of all taxable persons to support the implementation of the Corporate Tax system in the UAE, which is in line with the highest global standards. It also drives sustainable economic growth in the UAE by providing a conducive legislative environment that promotes tax compliance.”
Under Cabinet Decision No. (75) of 2023, penalties will be imposed on Taxable Persons, whether an individual or a legal entity, who do not comply with their obligations under the UAE Corporate Tax Law. Penalties will be applied in cases of failure to file and pay Corporate Tax due on time, including the failure of the Registrant to inform the Federal Tax Authority of any case that may require the amendment of the information pertaining to his Tax record kept by the Federal Tax Authority. A new structure has also been introduced for voluntary disclosure penalties.
Penalties also apply in cases of failing to properly keep records or submitting the required records and other information specified in the Tax Law. (ANI/WAM)
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