(WAM) -- The Federal Tax Authority (FTA) asserted that eligible tax registrants can benefit from the decision of administrative penalties re-determination, reducing their total amount due to be equal to 30 percent of their total unpaid penalties.

Eligible tax registrants can benefit from the re-determination, provided they complete the procedures required by the FTA through its e-services portal no later than 31st December, 2021.

In a press statement issued today, the authority outlined that after 31st December, 2021, a registrant who received administrative penalties before 28th June, 2021, will not be able to avail the re-determination and will be required to pay the full penalties due.

The authority also urged eligible registrants who were subject to administrative penalties issued before 28th June to benefit from paying only 30 percent of their total unpaid penalties, as per Cabinet Decision No. 49 of 2021 on Amending the Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE. The Decision went into effect on 28th June, 2021, and included re-determination in administrative penalties to help taxpayers meet their obligations.

The Federal Tax Authority clarified that the new Decision outlined three conditions that need to be met in order to benefit from the re-determination of administrative penalties imposed before 28th June, 2021. First, the administrative penalty must be imposed under Cabinet Decision No. 40 of 2017 before 28th June, 2021, and remain outstanding. Second, the tax registrant needs to have settled all due Payable Tax by 31st December, 2021. And third, the tax registrant must have paid 30 percent of the total unsettled administrative penalties due until 28th June, 2021, no later than 31st December, 2021.

The authority indicated that should the registrant meet all conditions, the new value of the penalties will be equal to 30 percent of the total unpaid penalties that will appear in the authority’s electronic system in 2022.

Khalid Ali Al Bustani, FTA Director-General, asserted the authority’s commitment to making sure that registrants benefit from the facilities, which are in line with the UAE leadership’s vision to support business sectors and implement a dynamic tax system that can drive further growth in the national economy, ensure transparency, and maintain economic momentum through a legislative tax environment that encourages self-compliance, and keeps pace with developments by continuously issuing decisions that meet the requirements of each period.

He noted that as part of its continuous efforts to raise awareness, the Federal Tax Authority issued two detailed clarifications about the new Decision, which are available on the "Public Clarifications" service on the Authority’s website (
https://www.tax.gov.ae/en). "Public Clarifications" support taxpayers to know where they stand in terms of tax requirements and to help them meet their tax obligations.

The authority clarified that registrants are encouraged to use the "Payment Adjustment Type" feature when settling their dues on the FTA’s e-services portal to start implementing the new procedures.

WAM/Tariq alfaham/Hassan Bashir