Dubai: The Federal Tax Authority (FTA) offers grace period for taxpayers falling behind on updating their tax registration information for the period ending in March 2025, in a new a new decision has been issued to support businesses in efficiently meeting their tax obligations.
The FTA specified that it is offering a grace period for tax registrants who have fallen behind on updating their tax records for the period from 1 January 2024 until 31 March 2025, allowing violators to make the needed adjustments and avoid incurring the administrative penalties associated with failure to inform the FTA of any cases that require modifying their tax records.
Granting a grace period for administrative penalties for registrants who have failed to update their tax record information was issued by the Cabinet; it stipulates that in the event where penalties were imposed on registrants for failing to update their records in time, and the registrants in questions already paid said penalties in the period from January 1, 2024 until the deadline set for the grace period, then the penalties will be refunded.
The FTA noted that the initiative aims to encourage registrants to update their tax records, clarifying that registered taxpayers must notify the FTA, using the FTA’s approved form and process, within 20 working days of any change in the information registered in the FTA systems. This includes the name, address, email, activity listed in the commercial license, legal form, partnership agreement for joint ventures, and articles of association, along with any changes in the nature of the registrant’s business or address from which they conduct any of their business activities.
The FTA Director General urged registered taxpayers to take advantage of the benefits the new Decision provides, which serve to reduce the tax burden on business sectors, enhance their contribution to national economic growth, encourage taxpayers to meet their obligations, and boost the UAE’s competitiveness in the business sector.
As part of its ongoing awareness efforts, the Federal Tax Authority issued a clarification on the grace period for updating tax record information, which can be accessed through the Public Clarifications service on the FTA official website at https://tax.gov.ae/en/. This service aims to keep taxpayers informed about all technical matters related to taxes, offering detailed explanations to simplify these concepts and enable taxpayers to comply with tax legislation.
