FTA announced a grace period to tax registrants who have delayed in updating their tax records

This initiative allows businesses that have not yet updated their records to make necessary adjustments and avoid administrative penalties associated with failing to notify the FTA of updates to their tax information.

 The Cabinet issued this Decision, granting a grace period for registrants to address any outstanding administrative penalties resulting from untimely updates to their tax records. If registrants had previously paid penalties for failing to update their records within the grace period, they may be eligible for a refund under the Penalty Refund Procedures specified in Cabinet Decision No. (105) of 2021, which outlines protocols for penalty instalment payments, waivers, and refunds.

 The FTA emphasized that the initiative encourages registrants to keep their tax information up to date. According to Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures, registered taxpayers must notify the FTA within 20 working days of any changes in their registered information. This includes updates to details like name, address, email, business activity, legal form, partnership agreements for joint ventures, and other essential business information.

 In its ongoing efforts to raise awareness, the FTA also issued a clarification on the grace period for updating tax records, which is available via the Public Clarifications service on the FTA’s official website. This service provides detailed information on tax-related matters, aiming to help taxpayers understand and comply with tax legislation.