The UAE Federal Tax Authority offers Penalty Installment Plans (PIPS) to help manage VAT penalties. Eligible individuals include registered taxpayers, authorized signatories, legal representatives, tax agents, and unregistered taxpayers with liabilities. Only administrative VAT penalties under Article 25 and Cabinet Decision 49 are eligible for inclusion in a PIP application. The minimum amount requirement is AED 50,000 in outstanding penalties within a single tax type. The number of installments and their respective amounts are determined by the percentage of administrative VAT penalties in comparison to the total due tax in the last 12 months. Multiple VAT penalties can be included in one application, provided they collectively amount to a minimum of AED 50,000. The declaration within the application must be signed by the authorized signatory. Applications can be saved as a draft for convenience, but must be submitted within 60 calendar days.
Source: emiratesca.com
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