By Staff Reporter
FTA Urges Businesses to Update Tax Records by March 31
The Federal Tax Authority (FTA) has urged tax registrants in the UAE to update their tax records during the designated grace period, which runs from January 1, 2024, to March 31, 2025.
The initiative, introduced by a UAE Cabinet decision, aims to relieve businesses from administrative penalties and encourage tax compliance, reinforcing the country’s business-friendly environment.
Under the new provision, registrants can amend their tax records without incurring penalties for failing to notify the FTA of any required updates. The move is in line with the leadership’s commitment to supporting businesses by reducing tax burdens and enhancing competitiveness in the market.
For those who have already received administrative penalties between January 1, 2024, and the start of the grace period, the FTA confirmed that these fines would be automatically reversed. Registrants are not required to take any action for the reversal to be processed.
As per Cabinet Decision No. 74 of 2023, businesses must notify the FTA within 20 business days of any changes to their registered data. These changes include updates to company names, addresses, trade license activities, legal entity types, partnership agreements, articles of association, and other relevant business details.
To assist taxpayers, the FTA has made available a public clarification on the grace period through its official website. This resource offers in-depth explanations to help businesses understand their tax obligations and ensure compliance with tax regulations.
The FTA continues to emphasize the importance of maintaining accurate tax records and encourages all registrants to take advantage of this penalty-free window to update their information promptly.
News Source: Emirates News Agency
