On 29th July 2023, the UAE Ministry of Finance has introduced the Cabinet Decision No. (75) of 2023 outlining the applicable administrative penalties for violations related to the application of Law No. (47) of 2022 on the Taxation of Corporations and Businesses (“Corporate Tax Law”).
Taxable persons, whether individuals or legal entities, will face administrative penalties imposed by the Federal Tax Authority in case of violating their obligations under the Corporate Tax Law. The implementation of such penalties will be effective as of 1st August 2023.
The Under-Secretary of the Ministry of Finance, Younis Al Khoori, has highlighted that “adhering to Corporate Tax compliance is a responsibility of all taxable persons to support the implementation of the Corporate Tax system in the UAE, which is in line with the highest global standards. It also drives sustainable economic growth in the UAE by providing a conducive legislative environment that promotes tax compliance”.
Failure to filing and paying taxes on time will give rise to such penalties that have been put in place to ensure that businesses in the UAE are complying with the Corporate Tax Law. Such penalties will also apply in case any taxable person fails to properly keep or submit the required records and other information specified in the Corporate Tax Law.
Author: Mohamed Felaya – Junior Associate – Corporate/Commercial department (former employee)
