FTA Sets Deadline 31 December 2022 to Apply for Re-determination of Administrative Penalties on Taxes

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The UAE’s Federal Tax Authority (FTA) urged eligible registered taxpayers to apply for the re-determination of administrative penalties on taxes prior to the 31 December 2023 deadline.

Eligible taxpayers can apply to have their penalties re-determined to be worth 30 % of the total outstanding amount of penalties that were not paid before 28 June 2021, the FTA said in a statement on Sunday.

These taxpayers must ensure they meet the conditions set out in the UAE Cabinet’s decision on re-determining administrative penalties imposed on tax law violations in the UAE, the authority said. They must also complete all related procedures through the e-services portal on the FTA’s official website before December 31 to be able to benefit from these facilities. “According to the relevant Cabinet decision, which went into effect on 1 January 2022, tax registrants who were unable to meet the criteria for benefiting from the re-determination by 21 December 2021 will be able to apply for re-determining administrative penalties to be equal to 30 per cent of the total outstanding fines by fulfilling the necessary conditions no later than 31 December 2022,” the FTA said.

Set up in 2016 to help the UAE diversify the national economy and increase non-oil revenue through the management and collection of federal taxes, the FTA has consistently improved its services to streamline the taxation process.

In October, the FTA said it plans to launch a new integrated platform this year to further digitalise tax administration as part of the national digital agenda. In September, the UAE also introduced a paperless tax refund system for tourists visiting the country, doing away with the need to retain receipts.