“Since the beginning of November, businesses registered for excise tax have been consistently complying with their requirements and deadlines, filing their tax returns on time. We urge those who haven’t done so yet to file their returns before the deadline of November 15, 2017, and settle the payable tax stated in the submitted excise tax return, in order to fulfil their obligations according to the tax procedures in the UAE,” Khalid Al Bustani, director-general of the Federal Tax Authority, said.
The Cabinet Decision No. (40) of 2017 on Administrative Penalties for Violations of the Tax Laws in the UAE applies to all the listed violations in the Federal Law No. (7) of 2017 on Tax Procedures and Federal Decree-Law No. (7) of 2017 on excise tax. According to this, the failure of the registrant to submit the tax return within the timeframe specified in the Tax Law will subject them to an automatic Dh1,000 penalty in the first time and Dh2,000 in case of repetition within 24 months.
The Cabinet Decision also states that if a taxable person fails to settle the payable tax stated in the submitted tax return or tax assessment he/she was notified of, within the timeframe specified in the tax law, he will be obligated to pay a late payment penalty of 2 per cent of the unpaid tax – due immediately once the payment of payable tax is late; 4 per cent, due on the seventh day following the deadline for payment; and a 1 per cent daily penalty will be charged on any amount that is still unpaid one calendar month following the deadline for payment, with the upper ceiling being 300 per cent.
Businesses are also required to ensure the accuracy of the data being submitted, as the submittal of an incorrect tax return by the registrant can incur a fixed penalty of Dh3,000 plus a percentage-based penalty of up to 50 per cent of the amount unpaid. <readmore>
UAE’s multiple-employer contract system kicks in
Skilled workers, both Emirati and expatriates, can now enter a multiple employer contract after obtaining approval of the Ministry The Minister of Human Resources and Emiratisation said that the new system will boost labour [...]
Late reprieve: Firms which failed to register for VAT won’t face penalties until April 30
The Federal Tax Authority (FTA) of the United Arab Emirates has given a reprieve to firms that missed the deadline to register for value-added tax (VAT). Companies eligible for VAT - those with a [...]
Guide on Company Formation in the UAE
United Arab Emirates has established itself as a safe, family friendly and low tax environment while maintaining international relationships with other global centers. It offers a set of benefits to every investors and corporate entities [...]
UAE’s tax authority launches four-step guide to filing VAT returns
UAE's tax authority launches four-step guide to filing VAT returns FTA says registered companies should check its website to see if they need to file on a monthly or quarterly basis. The Federal Tax [...]
Last chance on VAT registration
On December 17, 2017, Sheikh Hamdan bin Rashid Al Maktoum, the Deputy Ruler of Dubai and UAE Minister of Finance has given the final warning to all businesses to comply with the executive regulations [...]