Below are a few examples of information related to the tax records that required updating periodically ;
Change in Name, address, and email address , Mobile Number
Activities as per the trade license
Change in Legal type of the entity
Change in Ownership
Details of shareholders/Owners
Change/Addition/Deletion of Branches
Tax Procedures Public Clarification (TAXP007), has indicated examples of such procedures which may attract administrative penalties in case of failure to comply.
The below is the extract from the news posted on FTA's website.
The Federal Tax Authority (FTA) announced that a new Decision has been issued to support businesses in efficiently meeting their tax obligations, offering a grace period for tax registrants who have fallen behind on updating their tax records for the period from 1 January 2024 until 31 March 2025.
The initiative allows violators to make the necessary adjustments and avoid incurring the administrative penalties associated with failure to inform the FTA of any cases that require modifying their tax records.
The Decision on granting a grace period for administrative penalties for registrants who have failed to update their tax record information was issued by the Cabinet; it stipulates that in the event where penalties were imposed on registrants for failing to update their records in time, and the registrants in questions already paid said penalties in the period from 1 January 2024 until the deadline set for the grace period, then the penalties will be refunded, in line with the Penalty Refund Procedures outlined in Cabinet Decision No. (105) of 2021 on Controls and Procedures for Paying Administrative Penalties by Instalments, and Waiving and Refunding Administrative Penalties.
The FTA noted that the initiative aims to encourage registrants to update their tax records, clarifying that, as per Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures, registered taxpayers must notify the FTA, using the FTA’s approved form and process, within 20 working days of any change in the information registered in the FTA systems. This includes the name, address, email, activity listed in the commercial license, legal form, partnership agreement for joint ventures, and articles of association, along with any changes in the nature of the registrant’s business or address from which they conduct any of their business activities.
His Excellency Khalid Ali Al Bustani, Director General of the FTA, stressed the importance of the Cabinet Decision, which provides additional facilities for taxpayers, and forms part of the FTA’s commitment to collaborating and coordinating with businesses to ensure their compliance with tax regulations and laws, while helping them avoid administrative penalties.
For Further information , you may refer to https://tax.gov.ae/en/media.centre/news
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Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.
