The UAE Federal Tax Authority (FTA) has reminded registered taxpayers to benefit from 30 percent of the total outstanding amount of administrative penalties, that were not paid before June 28, 2021.
The FTA has set a deadline for the same, and said that eligible taxpayers must complete all related procedures through the EmaraTax platform, before December 31.
The move is part of the cabinet’s decision to support registrants in the tax system to “fulfil their obligations, providing a great opportunity to assist businesses in re-determining administrative penalties to be equal to 30 percent of total unpaid fines.”
The FTA said that after the given deadline, tax registrants who have outstanding administrative penalties from before June 28 2021 will not be eligible to use the re-determination facility and will be required to pay their penalties in total, “if met the required conditions within the deadline set by the Cabinet Decision on Re-Determining Administrative Penalties on Tax Violations in the UAE.”
FTA’s decision outlined three conditions that need to be met in order to benefit from the re-determination of administrative penalties imposed before 28 June 2021.
First, the administrative penalty must be imposed under Cabinet Decision No. (40) of 2017 before June 28, 2021 and remain outstanding.
Second, the tax registrant needs to have settled all due Payable Tax by December 31 2022 with no remaining outstanding taxes by end of 2022.
Third, the tax registrant must have paid 30 percent of the total unsettled administrative penalties imposed before June 28, 2021 no later than December 31, 2022.
How to pay
- Registered taxpayers must visit the Amnesty Dashboard on their EmaraTax accounts, to make the payment.
- Registrants can then select Administrative Penalties unpaid before the date of June 28, 2021.
- Registrants may either pay 30 percent for each of the Administrative Penalty line items or select such line items (either full or partial) that equate to 30 percent of such unpaid Administrative Penalties.
- Where the required conditions are met, the new value of the penalties will be equal to 30 percent of the total unpaid penalties, which will appear on the registrant’s account on the EmaraTax portal after 31 December 2022.
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