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
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