News headline 1 : : The UAE's Ministry of Finance has listed out a number of entities that are not required to register for Corporate Tax. News headline 2 : : The ministerial decision on the Exception from Tax Registration will apply to government and government-controlled entities, extractive businesses, and non-extractive natural resource businesses. News headline 3 : : Additionally, a non-resident person will not be required to register for Corporate Tax if they earn only UAE-sourced income and do not have a Permanent Establishment in the UAE. News headline 4 : : Meanwhile, federal government, UAE government departments and authorities, and other public institutions, do not require to register under Federal Tax Authority as long as they continue to meet the conditions for tax exemption. News headline 5 : : Federal Tax Authority ramps up its efforts by expanding inspection visits by 104% in six months. News headline 6 : : Dubai Financial Services Authority Introduces Whistleblowing Regime News headline 7 : : Big update on UAE Corporate Tax. News headline 8 : : Regular Auditing and maintaining accounts have a greater contribution towards the successful running of a business. The lack of proper books of accounts and regular auditing often results in the business owners continuing to run the venture with the impression that it is going on profitably, while it might be running in loss. The realization comes late and the resultant damages are often irreplaceable. This is where a pragmatic approach to External Auditing services in UAE becomes inevitable. Every business needs the service of professionally qualified and experienced External Auditors in UAE to look into their accounting activities.


Administrative Penalties for Corporate Tax Law Violations : UAE's Cabinet Decision (75) of 2023

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The Ministry of Finance issued the Cabinet Decision No. (75) of 2023 on 10th July 2023, a crucial step towards bolstering tax compliance. This decision focuses on administrative penalties related to violations of the Federal Decree-Law No. 47 of 2022, commonly known as the Corporate Tax Law.

Administrative Penalties for Corporate Tax Law Violations

Balancing Act for Compliance

The penalties are carefully structured to strike a balance between successful implementation and fostering compliance among UAE businesses. The goal is to align the country with the highest global taxation standards, promoting a legislative environment that supports sustainable economic growth.

Key Provisions

Cabinet Decision No. (75) of 2023 outlines penalties for various violations, including late filing and payment of Corporate Tax dues, failure to notify the Federal Tax Authority of necessary amendments, and a new structure for voluntary disclosure penalties.

Penalties Overview

Non-compliance with record-keeping obligations under Tax Procedures Law or Corporate Tax Law incurs penalties ranging from AED 10,000 to AED 20,000 within 24 months.

Late submission of Tax Returns under Corporate Tax Law will result in penalties ranging from AED 500 per month for the first twelve months to AED 1,000 per month from the thirteenth month onwards, starting the day after the specified deadline.

Failure to settle Payable Tax incurs a monthly penalty of 14% per annum. The due date of payment for Voluntary Disclosure is 20 Business Days from submission, and for Tax Assessment, it's 20 Business Days from receipt.

Incorrect Tax Return submission can lead to AED 500 fine unless corrected before the deadline specified in the corporate tax law.

Failure of the Registrant to submit a deregistration application within the timeframe specified in the Corporate Tax Law and its implementing decisions will incur penalties ranging from AED 1,000 in case of late submission of the application to a maximum of AED 10,000.

Stay Compliant, Stay Informed

To navigate these changes effectively, businesses are encouraged to stay informed and ensure timely compliance with the new regulations.

For a deeper understanding of these updates and the complete list of the penalties, we invite you to read our all-inclusive blog post: Administrative Penalties for Corporate Tax Law Violations.

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