Tax
Once re-determined, the penalties due until June 28, 2021, will be equal to 30 per cent of the total unpaid penalties. Image Credit: Pixabay

Dubai: The grace period for UAE’s tax registrants to get their penalties for violating tax laws re-determined has been extended until December 31, 2022.

Once re-determined, the penalties due until June 28, 2021, will be equal to 30 per cent of the total unpaid penalties.

The earlier deadline for re-determination was December 31, 2021.

The Federal Tax Authority (FTA) clarified that tax registrants who had not met the necessary conditions to benefit from the administrative penalties’ re-determination by December 31, 2021, can do so by ensuring they meet the conditions by December 31, 2022. First, the administrative penalty should have been imposed under Cabinet Decision No. 40 of 2017 before June 28, 2021, and the amount due was not settled in full before that date. Second, the tax registrant has settled all payable tax by December 31, 2022 (which means that the registrant must not have any tax due at the end of year 2022). And third, the tax registrant has settled 30 per cent of total unpaid administrative penalties due until June 28, 2021, no later than December 31, 2022.

The FTA said that should the registrant meet these conditions, the administrative penalties will be re-determined to equal 30 per cent of the total unpaid penalties.