UAE: Procedures for installment payments of penalties, administrative waiver of penalties

Procedures for taxpayers to resolve tax penalty liabilities in installments and also for the administrative waiver of penalties

Procedures for installment payments of penalties, administrative waiver of penalties

The tax authority introduced procedures for taxpayers to resolve tax penalty liabilities in installments and also for the administrative waiver of penalties.

The measures have an effective date of 1 March 2022.

Regarding the procedures allowing taxpayers to resolve tax penalties through installment payments, a request must be submitted to the tax authority. The tax authority will approve the requests when the following conditions are met:

  • The request is submitted for unpaid penalties only.
  • The unpaid penalties requested for installments is not less than AED 50,000.
  • The underlying taxes related to the administrative penalties submitted for installments are completely paid.
  • The unpaid penalties requested for installments will not be disputed in front of the Tax Dispute Resolution Committee (TDRC) or the Federal Court.

The request for administrative penalty waiver is to be made under a separate request submitted to the tax authority. Similarly, there are certain conditions that must be satisfied before the penalty waiver is granted.

Read a January 2022 report prepared by the KPMG member firm in the United Arab Emirates

 

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