UAE FTA Reduces Tax Penalties to Ease Compliance and Support Business Voluntary Disclosures

• UAE Federal Tax Authority has implemented Cabinet Decision No. (129) of 2025, reducing and revising administrative tax penalties to ease business compliance.
• The amendments aim to support voluntary compliance, reduce tax burdens, and enhance the UAE’s competitiveness as a global business hub.
• Key penalty reductions include: failure to submit documents in Arabic (from AED 20,000 to AED 5,000), failure to notify changes in tax records (from AED 5,000/10,000 to AED 1,000/5,000), and failure to notify legal representative appointment (from AED 10,000 to AED 1,000).
• The changes cover violations under tax procedures, excise tax, and VAT laws, and encourage timely voluntary disclosures by reducing financial penalties.
• The new rules took effect on 14 April 2026.

Source: regfollower.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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