Dubai: UAE businesses that are in breach of tax laws should alleviate the fines. It is part of new measures announced by the UAE to support businesses, and also provides for the reworking of unpaid levies on these administrative fines imposed before 28 June. But three conditions must be met before the fines can be recalculated to 30 percent of the unpaid fees. - The first condition is that the administrative fine in terms of cabinet decision no. 40 of 2017 on administrative penalties for violating tax laws in the UAE must be imposed before 28 June 2021. This is the date on which the new decision takes effect. - The second condition is that the business in question must pay all taxes payable by 31 December 2021; and
- The third condition requires taxpayers to pay 30 percent of the administrative fines before June 28 or December 31. What does the UAE Cabinet Decision entail? The cabinet decision no. 49 of 2021 relates to the amendment of some provisions of Cabinet Resolution no. 40 of 2017 on administrative fines for violating tax laws in the UAE. It provides relief as a benchmark to support businesses Once all of these conditions are met, the FTA (Federal Tax Authority) will, after December 31, re-determine the unpaid payable administrative fines to 30 percent of such outstanding fines. It will therefore exempt the tax registrar from the payment of the remaining 70 per cent and the relief will be applied automatically when the registrant meets the specified conditions. Of the violations and administrative fines, 16 were amended in value or in the calculation method as set out in the Cabinet resolution.