Our IT PRODUCT & Services

Table No. (1)
On Administrative Violations and Penalties related to the application of Federal Law No. (7) of 2017 on Tax Procedure

(10,000) for the first time.(20,000) in case of repetition.

The Registrant failed to submit a request to cancel the registration within the time limit specified in the tax law.

*New Mechanism

1. The taxable person shall pay the penalty applicable to the late payment of the payable tax, with a maximum of (300%), in accordance with the following:a)    (2%) of the unpaid tax due on the day following the due date for payment, upon late payment of the payable tax.

b)    (4%) monthly penalty due after one month from the payment due date, and on the same date every month after that, on the amount of tax that has not been paid to date.

2. For the purposes of this penalty, the due date for payment in the event of voluntary declaration and tax assessment is as follows:

a)    In the case of the voluntary

declaration, (20) business days from the date of its submission.

b)   In the case of tax assessment, (20) business days from the date of its receipt.

1. A fixed penalty is imposed:(1,000) for the first time. (2,000) in case of repetition.
2. As an exception to

Clause (1) of this penalty, if the incorrect tax return results in a tax difference less than the fixed fine mentioned in Clause (1) of this penalty, a fine equal to the tax difference shall be imposed, provided it is not less than AED (500).

3. Whoever corrects its tax return before the payment due date shall be exempted from the penalty specified in Clauses (1) and (2) of this penalty.

Without prejudice to the consequences of the penalty mentioned in Clause (10) hereof, a proportional penalty shall be imposed on the amount of the difference between the tax calculated and the tax that should have been calculated, in accordance with the following:1.    (5%) on the difference amount in the event that the voluntary declaration was submitted within one year of the due date of the tax return, tax assessment, or related refund application.

2.    (10%) on the difference amount in the event that the voluntary declaration was submitted during the second year from the due date of the tax return, tax assessment, or related refund application.

3.    (20%) on the difference amount in the event that the voluntary declaration was submitted during the third year from the due date of the tax return, tax assessment, or related refund application.

4.    (30%) on the difference amount in the event that the voluntary declaration was submitted during the fourth year from the due date of the tax return, tax assessment, or related refund application.

5.    (40%) on the difference amount in the event that the voluntary declaration was submitted after the fourth year from the due date of the tax return, tax assessment, or related refund application.

Without prejudice to the consequences of the penalty mentioned in Clause (10) hereof, shall be imposed a person:1.    A penalty of (50%)on the amount of error;

2.    A penalty of (4%) for each month or part of the month from any of the following:

a)     Tax unpaid to FTA, from the date that payment is due for the relevant tax period until the date of receipt of the tax assessment.

b)    The tax that has not been refunded to FTA due to an unjust tax refund, from the date of the tax refund from FTA until the date of receiving the tax assessment.

1) The Registrant shall pay the penalty applicable to the late payment of the payable tax, with a maximum of (300%), in accordance with the following:a)     (2%) of the unpaid tax due on the day following the due date for payment, upon late payment of the payable tax.

b)    (4%) monthly penalty due after one month from the payment due date, and on the same date every month after that, on the amount of tax that has not been paid to date.

2) For the purposes of this penalty, the due date for payment in the event of voluntary declaration and tax assessment is as follows:

a)     In the case of the voluntary declaration, (20) business days from the date of its submission.

b)    In the case of tax assessment, (20) business days from the date of its receipt.

Table No. (2)
On Administrative Violations and Penalties related to the application of Federal Decree-Law No. (7) of 2017 on Excise Tax

(5,000) for the first time(10,000) for each repetition

Table No. (3)
On Administrative Violations and Penalties related to the application of Federal Decree-Law No. (8) of 2017 on Value Added Tax