Extension of Deadline to Qualify for the 70% Waiver

Extension of Deadline to Qualify for the 70% Waiver

Extension of Deadline to Qualify for the 70% Waiver

The Federal Tax Authority (“FTA”) recently issued Tax Procedures Public Clarification No. TAXP004 on amending the timeline to benefit from the redetermination of administrative penalties in the UAE.

  • Background

Cabinet Decision No. 49 of 2021 provides for a possible waiver of 70% of administrative penalties imposed before 28 June 2021 provided the following are settled by the person by 31 December 2021:

  • 30% of the outstanding admin penalties imposed before 28 June 2021
  • All payable tax as of 31 December 2021
  • Extension of deadline for availment based on Cabinet Decision No. 108 of 2021

The deadline for availment is extended from December 31, 2021 to December 31, 2022

  • Updated Conditions for availing the 70% penalty waiver:
    • The subject administrative penalties have been imposed before 28 June 2021.
    • Taxpayer has not yet settled in full the subject administrative penalties.
    • Taxpayer must settle 30% of the subject outstanding admin penalties by 31 December 2022.
    • Taxpayer must settle all tax payable by 31 December 2022.
  • Next Steps?
    • Upon satisfying the conditions, FTA will redetermine the penalty within 30 business days from 31 December 2022.
    • Status of the redetermination process will reflect on the taxpayer’s FTA portal account’s dashboard.
    • Taxpayers may receive notification from the FTA to provide additional information to avail the penalty waiver.

How can Crowe help?

  1. Assist taxpayers to assess if they qualify for the penalty waiver and aid them in the availment procedures.
  2. Assist taxpayers who have qualified for the penalty waiver to collate and submit additional documents requested by the FTA.

Contact Us

Markus Susilo
Markus Susilo
Partner- Payroll and Indirect Tax
Michel Ruitenberg
  Partner DIFC - Indirect Taxes