End Of March Deadline For Updating Tax Records Without Administrative Penalties From FTA

The Federal Tax Authority (FTA) has urged registrants to update their tax records during an extended grace period. Submissions made before March 2025 will not face administrative penalties. This initiative aims to encourage compliance and support taxpayers in adhering to tax procedures.

According to the Cabinet Decision on the Executive Regulations of the Federal Decree-Law on Tax Procedures, registrants must inform the FTA of any changes to their data within 20 business days. Failure to do so may result in penalties. The necessary updates include business name, address, email, trade licence activities, legal entity type, partnership agreements for unincorporated partnerships, articles of association or equivalent documents, nature of business, and any operational addresses.

The Cabinet introduced a grace period from January 2024 to March 2025 for updating tax records without incurring penalties. This decision aims to facilitate compliance with tax regulations. During this period, any penalties imposed for not updating information within the required timeframe will be waived and reimbursed.

The FTA emphasised that this decision supports taxpayers by simplifying tax procedures across various business sectors. It is part of efforts to enhance contributions to national economic growth. The authority encourages registrants to take advantage of this opportunity to ensure their records are up-to-date.

The FTA highlighted that the grace period is designed to motivate registrants to comply with tax legislation. By offering more facilities and simplifying procedures, the authority seeks to foster a more effective contribution from businesses towards economic development.

For those needing further details, the FTA has issued a public clarification on updating information in tax records during the grace period. This can be accessed through the Public Clarifications service on the FTA's official website.

This initiative reflects ongoing efforts by authorities to streamline processes and encourage adherence to regulations among businesses operating in the region.

With inputs from WAM