The Ministry of Finance announces a list of administrative fines for corporate tax violations

29/Jul
Fines will be applied starting from August 1, 2023

Fines apply to:

1- The taxable person who is not obligated to pay the tax
2- If the declaration is not submitted within the specified period
Introduce a new penalty structure for voluntary statements

Abu Dhabi:

Today, Saturday, the UAE Ministry of Finance announced the issuance of Cabinet Resolution No. (75) of 2023 regarding administrative fines for violations related to the application of Federal Decree-Law No. (47) of 2022 regarding corporate and business tax (“corporate tax law”), whereby The Cabinet’s decision specifies the administrative fines that will be imposed on violations related to the application of the corporate tax law, which will be applied as of August 1, 2023.

Fines for breaching the provisions of the Corporate Tax Law have been carefully designed and benchmarked against best practices to ensure smooth enforcement and compliance without placing additional burdens on compliant businesses.

Younis Haji Al-Khoury, Undersecretary of the Ministry of Finance, said: “Compliance with the corporate tax is the responsibility of all taxpayers, as this supports the efficient application of the tax system in the country in accordance with the best international standards. This ensures advancing sustainable economic growth in the UAE, and providing a stimulating legislative environment that encourages tax compliance.”

And according to Cabinet Resolution No. (75) of 2023, fines will be applied to the taxable person who does not comply with the provisions of the corporate tax law in the United Arab Emirates, whether he is an individual carrying out business subject to corporate tax or a legal entity, as fines will be applied when he fails to submit a tax return. Or by paying the payable tax on time, or in the event that the registrant fails to inform the Federal Tax Authority of any situation that may require amending the information related to his tax record kept with it, and a new structure has been introduced for fines related to voluntary declarations.

Fines will also apply in cases where the required records and other information specified in the tax law are not kept or provided