UAE Federal Tax Authority issues Public Clarification on grace period for updating tax records
As established in Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures, entities registered with the FTA must notify any modification on the information registered in the FTA's portal within 20 working days and through the form and process approved by the FTA. This includes changes to the following information:
- Name, address and email;
- Tade license activities;
- Legal entity type, partnership agreement for unincorporated partnerships and articles of association, or its equivalent;
- Nature of the business of the registrant; or
- The address from which any business is conducted by the person.
In general terms, failure to update such information within the prescribed deadline is considered a tax violation, subject to administrative penalties.
Through the Public Clarification (TAXP007), the FTA has granted taxpayers with a grace period, whereby administrative penalties will not be imposed on entities which update their tax information during the period starting from 1 January 2024 to 31 March 2025 ("grace period").
If penalties were already imposed by the FTA during the period from 1 January 2024 until the implementation of the grace period, those will be reversed.
Conclusion
Taxpayers are encouraged to update their information (as required) within the grace period, to avoid potential penalties derived from not complying with such obligation.
