UAE: Clarifications about tax penalty regime

The clarifications address how the guidance in the cabinet resolution will be implemented.

The clarifications address how the guidance in the cabinet resolution will be implemented.

The tax authority issued clarifications concerning guidance that, in an April 2021 cabinet resolution, revised the administrative penalties imposed for violations of tax laws in the UAE.

The clarifications address how the guidance in the cabinet resolution will be implemented. For example, a clarification confirms that the periodic percentage penalty of 4% per month is not applicable when a taxpayer makes a voluntary disclosure or receives a tax assessment and pays the tax debt within 20 business days from the date of the voluntary disclosure or the receipt of the tax assessment.

Another clarification specifies the requirements for obtaining a 70% reduction of penalties that were imposed before the effective date of the new administrative penalties.
 

Read a May 2021 report prepared by the KPMG member firm in the United Arab Emirates

 

 

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