UAE announces penalties for violations of corporate tax rules

A new structure has also been introduced for voluntary disclosure penalties

By WAM

Published: Sat 29 Jul 2023, 7:34 PM

Last updated: Sat 29 Jul 2023, 10:26 PM

The UAE's Ministry of Finance on Saturday announced the issuance of a new Cabinet decision that specifies a list of corporate tax violations where administrative penalties will apply. The new rule will come into effect on August 1.

Under Cabinet Decision No. (75) of 2023, penalties will be imposed on taxable individuals or entities that do not meet their obligations under the UAE Corporate Tax Law, which came into force in June.

It laid out the violations as follows:

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Failure to file and pay Corporate Tax due on time
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.
Failure to properly keep records or submit the required records and other information specified in the tax law.

All Cabinet and Ministerial Decisions and more information relating to the Corporate Tax Law can be viewed at https://mof.gov.ae/tax-legislation/.

The Corporate Tax Law Penalties have been carefully designed and benchmarked to ensure successful implementation and compliance of the new law without creating a burden on UAE businesses.

Younis Haji Al Khoori, undersecretary 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."

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