The Federal Tax Authority announced a grace period for registered entities on 6th November 2024. This facility is provided for those who have not updated the details of their tax registration, w.e.f. March 2025. The grace period includes all FTA-registered businesses which, if they have not updated registration or tax information by January 1, 2024, shall be liable to update to the set deadline of March 2025. For these businesses, the grace period would extend to amending changes such as address, email, business activity, or business legal form without any fine.
It will greatly help these businesses which are often on the move, in updating records and allow businesses to promptly rectify errors that they have made without fear of incurring a fine, thereby, improving their compliance.
Principal Requirements for Businesses to Comply with FTA Registration Updates
The FTA reminds businesses that they are required to notify the authority within 20 days of any factual change that concerns the information registered at the authority.
- Changes in the name of the business or the registered legal entity
- Changes in the location, telephone number, or the main email address
- Alteration in the activity included in the commercial license
- Change of legal form or the form of ownership
- Amendment of partnership terms in the Joint Ventures
- Modification in the articles of association or change of business activities
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Director General Statement on UAE Tax Registration Grace Period
His Excellency Khalid Ali Al Bustani, Director General of the FTA, emphasized the relevance of this decision in giving support to businesses in enabling them to comply with tax regulations and improve tax compliance.
How Businesses Can Benefit from the Tax Grace Period UAE
- Avoid Penalties: Businesses can avoid penalties by making amendments within the allocated time.
- Access Refunds for Paid Penalties: Businesses that are late in updating their records are eligible for reimbursement upon payment of fines.
- Strengthen Compliance Practices: Businesses can improve compliance procedures and avoid penalties in the future.
- Reduce Tax Burden: Businesses can focus on operations without tax penalties.
- Enhance Business Competitiveness: Tax compliance improves business reputation.
Read More : Corporate tax refund
FTA Public Clarifications and Awareness for Tax Compliance
Clarification on the grace period as issued by the FTA has also been brought to the public’s attention thanks to the efforts of the FTA in promoting general understanding among taxpayers.
Encouraging Businesses to Maintain Tax Compliance in UAE
The FTA considers this period as an intervention measure that will enable businesses to regard tax compliance as an ordinary requirement that does not unnecessarily interfere with their operations.
Conclusively, the FTA granting a grace period to such businesses to update their tax records under this notice is a good chance for them to amend their tax details without repercussions.
Read More : Corporate Tax in Dubai
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Contact Tax Consultants in UAE for Corporate Tax Compliance
Businesses are advised to consult Tax Consultants in UAE to ensure tax compliance and avoid penalties. You may also contact us for professional tax advisory services.
