Abu Dhabi: The Federal Tax Authority (FTA) has called upon businesses registered for excise tax to file their October returns before the deadline on November 15, 2017, in order to avoid the penalties stipulated in Cabinet Decision No. (40) of 2017 on Administrative Penalties for Violations of the Tax Laws in the UAE.
The authority has stressed the necessity of filing returns regularly before the 15th day of every month for the previous tax period. All businesses registered for Excise Tax must pay the due tax on excisable goods (50 per cent on carbonated drinks, 100 per cent on tobacco products and energy drinks).
Khalid Al Bustani, Director-General of the FTA, said: “Since the beginning of November, businesses registered for excise tax have been consistently complying with their requirements and deadlines, filing their tax returns on time. We urge those who haven’t done so yet to file their returns before the deadline of November 15, 2017, and settle the payable tax stated in the submitted excise tax return, in order to fulfil their obligations according to the tax procedures in the UAE.”
Businesses can file their returns online and free of charge through the eservices portal on the FTA website
There is a late payment penalty of 2 per cent on unpaid taxes — due immediately once the payment of payable tax is late. That increases to 4 per cent after seven days. If the tax is unpaid after one calendar month, there is a 1 per cent daily penalty that will be charged. The fine is capped at 300 per cent.
Businesses are also required to ensure the accuracy of the data being submitted, as the submittal of an incorrect tax return by the registrant can incur a fixed penalty of Dh3,000 plus a percentage-based penalty of up to 50 per cent of the amount unpaid.
