Update Tax Records at FTA to Avoid Penalties

The Federal Tax Authority urges all registrants to have their tax records updated before the end of March 2025.

Article 15 of Federal Decree-Law No. 28 of 2022 on Tax Procedures requires taxpayers to maintain accurate records and inform the FTA of any changes in their registration details. Furthermore, Cabinet Decision No. 74 of 2023 reinforces the requirement that taxpayers update their tax records within 20 business days of any change to the data available with the FTA.

Key Information to Update:

A registrant must notify the FTA regarding the following details:

• Name, address, and email address.
• Trade license activities.
• Legal entity type, partnership agreement for unincorporated partnerships, and articles of association or its equivalent.
• Nature of the Business of the Registrant.
• The address from which the Registrant conducts any Business.

Grace Period:

This move was taken to encourage the registrants to update their records with the FTA by granting a grace period where no administrative penalties will be levied who update their records from 1^st January 2024 to 31^st March 2025.

In cases where any penalties that had already been imposed during the grace period will be waived off and reimbursed.

Administrative penalties for non-compliance:

The Cabinet Decision No 75 of 2023 levies an administrative penalty of AED 5000 for the failure of the person conducting business activity to comply with Article 15 of Federal Decree-Law No. 28 of 2022 on Tax Procedures to submit the data, records, and documents to FTA.

To understand the penalties associated with non-compliance under the UAE Corporate Tax Law, refer to our detailed guide on Penalties Under the UAE Corporate Tax Law.

Next course of action:

This decision implies that the FTA intends that any changes in the information that is available in the FTA relating to the business must be updated within 20 business days to avoid any penalties complying with Cabinet Decision No. 74 of 2023. This may be worth noting after the completion of the grace period to avoid any penalties.

Reference: News shared by FTA: https://tax.gov.ae/en/media.centre/news/federal.tax.authority.calls.on.registrants.to.benefit.from.grace.period.up.to.end.of.march.to.update.tax.records.to.avoid.administrative.penalties.aspx#divAccessibility