Extension of Deadline to Qualify for the 70% Waiver
The Federal Tax Authority (“FTA”) recently issued Tax Procedures Public Clarification No. TAXP004 on amending the timeline to benefit from the redetermination of administrative penalties in the UAE.
- Background
Cabinet Decision No. 49 of 2021 provides for a possible waiver of 70% of administrative penalties imposed before 28 June 2021 provided the following are settled by the person by 31 December 2021:
- 30% of the outstanding admin penalties imposed before 28 June 2021
- All payable tax as of 31 December 2021
- Extension of deadline for availment based on Cabinet Decision No. 108 of 2021
The deadline for availment is extended from December 31, 2021 to December 31, 2022
- Updated Conditions for availing the 70% penalty waiver:
- The subject administrative penalties have been imposed before 28 June 2021.
- Taxpayer has not yet settled in full the subject administrative penalties.
- Taxpayer must settle 30% of the subject outstanding admin penalties by 31 December 2022.
- Taxpayer must settle all tax payable by 31 December 2022.
- Next Steps?
- Upon satisfying the conditions, FTA will redetermine the penalty within 30 business days from 31 December 2022.
- Status of the redetermination process will reflect on the taxpayer’s FTA portal account’s dashboard.
- Taxpayers may receive notification from the FTA to provide additional information to avail the penalty waiver.
How can Crowe help?
- Assist taxpayers to assess if they qualify for the penalty waiver and aid them in the availment procedures.
- Assist taxpayers who have qualified for the penalty waiver to collate and submit additional documents requested by the FTA.
