Public Clarification TAX P007: Grace Period to update information in tax records
by Reina Consulting | Mar 15, 2025
The Federal Tax Procedure has provided a grace period to the taxpayers to update their tax records on the Emaratax portal. The grace period is extended only for updating the profile details and do not apply for cases such as late registration, de-registration, late filing of returns etc
While the technical aspects covered in the respective Laws are crucial, administrative compliances form a backbone of any tax regime and thus it is important for businesses, to analyse and understand the implications of such updates
With the release of this Public Clarification, the Authorities have provided a relief to the taxpayers on account of penalties already levied and also review the records and update it within the grace period provided. Below are some key aspects of the Public Clarification
| Key Aspects |
Particulars |
| Records to be updated |
- Registrants are required to inform the FTA of any event that might require the amendment of information related to their tax record kept by the FTA, including the following changes:
- Name, address and email address
- Trade License activities
- Legal entity type, partnership agreement for unincorporated partnerships and articles of association or its equivalent
- Nature of the business of the registrant
- The address from which any business is conducted by the registrant
- It is often observed that taxpayers generally fail to update following details apart from the above list as prescribed in the Regulations, which are also required to be updated within the timeframe:
- Change in shareholding
- Addition/Deletion of branch details
- Change in Authorised Signatory
|
| Timeline to Update |
- 20 business days from the occurrence of change
|
| Penalty upon failure to update |
- AED 5,000 for the first time
- AED 10,000 in case of repetition
|
| Grace Period Granted through this Clarification |
- 01 Jan 2024 to 31 March 2025
- Any update made within the aforesaid period will not attract any penalty
|
| Relief for penalties already levied |
- Any penalties already levied during the grace period, whether paid or unpaid, will be reversed by the FTA
- Registrants are not required to contact the FTA to obtain a reversal of the administrative penalty, as this will be done automatically.
|
It is advised that the taxpayers should review the above and take benefit of the additional period granted by the Authority and complete the compliances before 31 March 2025
