Tax Procedures Public Clarification
Redetermination of administrative Penalties Levied Prior to the Effective Date of Cabinet Decision No. 49 of 2021
Please be informed that Public Clarification TAXP004replaces Public ClarificationTAXP002.
On28 April 2021, the Cabinet issued Decision No.49of 2021 on Amendingsome Provisions of CabinetDecisionNo. 40 of 2017on Administrative Penalties for Violations of Tax Laws in the UAE (“Cabinet DecisionNo.49of 2021”)1. Cabinet decision. 49 of 2021amendedsome of the administrative penalties applicable to certain violations and allowed for a redetermination of some of the penalties already imposed.
On 30 December 2021, Cabinet Decision No. 49 of 2021was amended by Cabinet Decision No. 108 of 2021on the Amendment of CabinetDecisionNo.40 of 2017onAdministrative Penalties for Violations of Tax Laws in the UAE(“Cabinet Decision No. 108 of 2021”), with effect from 1 January 2022.
Cabinet Decision No. 108 of 2021amendsthe timelines provided to benefit from the concessionary measures provided in the form of redetermination of administrative penalties.
This Public Clarification provides detailed information the redetermination of some of the penalties already imposed.
Details relating to the amendments to administrative penalties in accordance with the First Article of Cabinet Decision No. 49 of 2021 have been discussed in the tax Procedures Public Clarification“TAXP001-Amendments to the Penalties Regime”, available on the FTA’s website.
Cabinet DecisionNo.49 of 2021 provides for the ability to predetermined penalties imposed before its effective date(i.e. before 28 June 2021)where the penalties were imposed according to cabinet DecisionNo.40of2017andcertain conditions are met. This decision is applicable to all administrative penalties imposed as per Cabinet DecisionNo.40 of 2017 whether in respect of tax procedures, VAT, or Excise Tax.
Cabinet decision. 108 of 2021 extends the period within which the registrant can benefit from the penalty redetermination.