Grace Period Provided to Update Information in UAE Tax Records

No Penalty For Failure to Update Tax Records by 31st March 2025

Background

• Tax registrants are required to update their tax records (for example – Name, address, email address, trade license activities, legal entity type etc.) with the Federal Tax Authority (“the FTA”) within 20 business days.
• Delay or failure to update the tax records attracts penalty.

Recent Public Clarification (TAXP007)

Grace Period Provided to Update Information in Tax Records Without Incurring Penalty

• No administrative penalties applicable for updating tax records during the grace period between 1st January 2024 to 31st March 2025.
• Penalty (if any) imposed earlier for failing to update tax records between 1st January 2024 to 31st March 2025 – would be reversed or credit will be granted for payment.
• Registrants are not required to contact FTA for the reversal. It will be done automatically.
• Updating information in the tax records includes following changes
  • Name, address, and email address
  • Trade license activities
  • Legal entity type, partnership agreement for unincorporated partnerships, and articles of association or its equivalent
  • Nature of the business of the registrant
  • Address from which business is conducted
• Examples of instances covered under this public clarification
  • Failure to update about new branch opening or to upload its trade license
  • Failure to update new business address
  • Failure of existing VAT/Excise registrants to update records, before registering for corporate tax
  • Registering for corporate tax with incorrect details and failure to correct the incorrect information