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UAE Amends Tax Penalty Rules: New Fines for Tax and VAT Violations Effective April 2026

  • The Emirati Cabinet amended administrative penalties for tax violations via Decision No. 129/2025.
  • Changes include updated definitions and revised penalty tables for Tax Procedures Law and VAT Law violations.
  • Tax Procedures Law penalties now range from 500 to 20,000 dirhams, with some fixed or monthly percentage-based penalties.
  • VAT Law penalties range from 2,500 to 5,000 dirhams, with higher penalties for certain goods in Designated Zones.
  • The amendments take effect April 14, 2026.

Source: news.bloombergtax.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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