UAE, 6 November, 2024 : The Federal Tax Authority (FTA) has issued Public Clarification TAXP007, introducing a grace period that permits registrants to update their tax records without incurring administrative penalties.
This grace period, effective from January 1, 2024, to March 31, 2025, allows registrants to amend essential details, such as name, address, and business type, in their tax records held with the FTA without the usual risk of fines.
Under regular procedures, TAXP007 clarifies that registrants must notify the FTA of changes to their tax information within 20 business days. Failure to do so constitutes a tax violation subject to administrative penalties. However, during the grace period, any updates made will be exempt from these fines, encouraging proactive compliance.
Moreover, if registrants had previously been penalized for not updating their records before the grace period’s start, TAXP007 confirms that these penalties will be reversed automatically by the FTA.
Source : www.tax.gov.ae
