Ensuring Compliance with ADGM Companies Regulations: Importance of Maintaining Essential Registers.
Ensuring Compliance with ADGM Companies Regulations: Importance of Maintaining Essential Registers
We would like to draw your attention to an important aspect of the ADGM Companies Regulations that all businesses operating within the Abu Dhabi Global Market (ADGM) should adhere to the maintenance of essential registers.
Under the ADGM Companies Regulations, businesses are required to maintain specific registers to ensure transparency, accountability, and compliance with legal obligations. These registers serve as a vital source of information and play a crucial role in demonstrating the legitimacy and integrity of your company’s operations. They provide an accurate record of various aspects of your business and contribute to maintaining a clear and transparent corporate governance structure.
ADGM authorities have recently taken action against companies found to be non-compliant with these regulations. We strongly advise all our clients to take proactive measures to ensure the proper maintenance of the essential registers to avoid any potential repercussions.
The following are some of the essential registers that companies are mandated to maintain as per the ADGM Companies Regulations:
Essential registers mandated to maintain as per the ADGM Companies Regulations:
Maintaining these registers is not only a legal obligation but also a strategic practice that can positively impact your business. Regularly updated and accurate registers can help you:
Demonstrate Compliance: Properly maintained registers exhibit your commitment to complying with ADGM regulations and global best practices, enhancing your reputation as a responsible and well-governed entity.
Facilitate Due Diligence: When engaging in transactions or partnerships, potential investors, partners, or regulatory bodies may request access to these registers to assess your company’s credibility.
Enhance Transparency: Transparent operations foster trust among stakeholders, including clients, investors, employees, and partners.
Mitigate Risks: Accurate records reduce the risk of disputes, misunderstandings, and potential legal issues.
At MS, we are dedicated to assisting you in meeting these regulatory requirements. If you require any assistance with maintaining the preparation of these documents, contact us!
Thank you for entrusting MS as your partner. Together, we can ensure your business thrives in a compliant and transparent environment.
Disclaimer: Please be advised that the fine amounts specified in the register are subject to revisions based on any modifications made to the schedule of contraventions by the ADGM authorities. These revisions may arise due to updates in regulatory requirements, policy amendments, or other factors deemed necessary by the ADGM.
Expanding to Al Reem and Paving the Way as a Leading Financial District!
An important milestone for Abu Dhabi and ADGM was reached on May 8th, as the International Financial District grew to incorporate both Al Maryah and Al Reem islands, with a total area of 1,438 hectares. This expansion made it one of the biggest financial districts in the world.
Picture credits to ADGM.
The fastest-growing IFC in the area is ADGM, and this growth results from greater demand from local and international businesses who have chosen Abu Dhabi as their preferred place to live and work. Businesses in the financial district will profit from being subject to the English common law of the financial freezone, having the chance to recruit top personnel, and having more accessible access to investment and business possibilities by being a part of the dynamic community of ADGM. ADGM will keep assisting the community and improving its offerings, and we’re excited to celebrate the various establishments, amenities, and facilities for the high quality of life that the two islands have to offer. Welcome to ADGM, Al Reem Island companies, retailers, institutions, and people.
Are you considering setting up your business in ADGM’s rapidly expanding financial district? Let MS, guide you through the complex process of business incorporation in ADGM. With our extensive experience in the industry, we can provide you with expert guidance and support tailored to meet your specific needs and goals. We’ll advise you on company structure and governance, ensure compliance with local regulations and laws, and help you set up for long-term success in ADGM’s thriving business ecosystem. Beyond incorporation, we offer a range of essential business services, including accounting, taxation, and corporate finance. Our deep expertise and knowledge of the local market will help you make informed decisions and achieve your business objectives more efficiently and effectively.
WHY MS
We are an Energetic, Passionate, and curious mix of technologists, Lawyers, Problem Solvers, and Business builders with diverse expertise and background.
We believe our success comes from giving our clients the support to become the best they can be.
We value our clients and are committed to adding value to all our engagements without compromise.
We strive to find solutions to the challenges as we are known to have mastered the“magic of getting things done.”
We are responsive and believe in maintaining an open line of communication with our clients.
Unclear about ADGM-Al Reem expansion? Check out our FAQ here.
Starting from 1st June 2023, the United Arab Emirates (UAE) will be implementing a corporate tax regime for the first time in its history. Under the UAE Corporate Tax Law, all companies conducting business within the UAE will be subject to corporate taxation. The tax rate will be set at a flat rate of 9%, and companies will be required to submit annual tax returns to the Federal Tax Authority (FTA). The introduction of corporate tax in the UAE is a significant development for the country’s economy, and businesses operating in the UAE need to prepare for the upcoming changes.
WHAT IS CORPORATE TAX
Corporate Tax is a form of direct tax levied on the net income or profit of corporations and other businesses. Generally, such taxes are computed on the accounting net profit/income of a business, after making adjustments for certain items which will be specified under the UAE Corporate Tax law.
The UAE Corporate Tax regime will become effective for financial years starting on or after 1 June 2023.
It is clarified that when a business has a calendar year as its financial year. then the Corporate Tax shall be effective from 1 January 2024.
Corporate Tax Rate in UAE will be applicable at the following rates:
Income
Rate
Taxable income not exceeding AED 375,000.Qualifying Income of a Qualifying Free Zone Person*
0%
Taxable income exceeding AED 375,000.Non-Qualifying Income of a Qualifying Free Zone Person
9%
*It is not clear what will be considered as ‘Qualifying Income’, but further clarity is expected in a subsequent Cabinet Decision.
For example, if the Company earns a taxable profit of AED 400,000 in an FY, The Corporate Tax liability will be calculated as follows:
Taxable income of AED 0 – AED 375,000 at 0% = AED 0
The portion of taxable income exceeding AED 375.000 (i.e., AED 400.000 – AED 375.000 = AED 25,000) at 9% = AED 2,250
What is Taxable Income as per Corporate Tax?
To reduce complexity and compliance costs, the UAE CT regime determines a company’s Taxable Income based on its accounting net profit (or loss) as disclosed in its financial statements. This requires that the financial statements be prepared according to UAE accounting standards. Businesses in the UAE commonly use International Financial Reporting Standards (IFRS) because there are no generally accepted accounting principles (GAAPs) in the UAE.
A Taxable person is someone who is subject to corporate tax. What is the tax base of a taxable person?
Resident Person
Tax base
An entity that is incorporated in the UAE. (Including a Free Zone entity)
Worldwide Income
A foreign entity that is effectively managed and controlled in the UAE
Worldwide Income
A natural Person/individual who conducts a Business or Business Activity in the UAE
Worldwide Income
Non-resident Person
Tax base
Has a permanent establishment (‘PE’) in the UAE
Taxable income attributable to the PE
Derives UAE Sourced Income
The UAE sourced income not attributable to the PE
Has a Nexus in the UAE
Taxable income attributable to the Nexus
Will any kind of business be subject to Corporate Tax in UAE?
The tax will be applicable in all businesses including the free zones except:
Government Entity
Government Controlled Entity
Persons engaged in an Extractive Business
Persons engaged in Non-Extractive Natural Resource Business
Qualifying Public Benefit Entity
Qualifying Investment Funds
Pension fund and Social Security fund (subject to regulatory oversight of the competent authority)
Any other Person as may be determined in a decision issued by the Cabinet.
How do you know if you qualify for a Freezone?
In order to qualify for the 0% CT rate, QFZP (Qualifying Free Zone Person) must meet all of the following conditions:
It must be a Free Zone Person (i.e., a juridical person incorporated, established, or otherwise registered in a Free Zone, incl. branches).
Maintain adequate substance in the UAE.
Derive Qualifying Income (to be defined in a Cabinet Decision).
Not have made an election to be subject to the standard UAE CT regime.
Comply with all transfer pricing rules and documentation requirements; and
Meet any other conditions as prescribed by the MoF.
Corporate Tax Training
MS Group has extensive training experience in every new Regulation that has been introduced in the UAE. particularly in the area of VAT. AML. IFRS, etc.
We are passionate about developing people to their true potential. We are available to conduct a tailor-made awareness program to enhance the skill set of in-house teams and senior management.
We can customize our training plan to cover all or either of the following areas:
Provide overall awareness about Corporate Tax Regulations.
Awareness about deductible expenses/disallowances to be taken care of while computing taxable Income.
Corporate Tax Compliance
Dynamic economic development, globalization, business pressures, and continuous legislation amendments/developments all force organizations to consider a new approach to the process of tax accounting, preparation of tax reporting documentation, and cooperation with the tax authorities.
We assist organizations to improve management effectiveness, correlating tax decisions made in one country with the business imperatives of the overall organization.
Our Corporate Tax Compliance Team assists organizations in meeting tax compliance requirements, by offering a wide range of services that include:
General Compliance Service
Corporate Tax Registration
Calculation of tax payables
Preparation of Corporate Tax returns and other tax reporting documents
Review of the tax return prepared by the organization.
Assistance with correspondence with the tax authorities, in case of any queries raised by the authorities.
Coordinating with authorities to settle tax disputes if any.
Corporate Tax Implementation
In the increasingly complex areas of Corporate Tax reporting, tax authority compliance, and tax planning – in-house tax departments are often challenged to meet constantly changing requirements.
Our experienced professionals having industry experience and experience in Corporate Tax can supplement the professionals of your organization to ensure an error-free transition to the newly introduced Corporate Tax in the UAE.
Our reputation for expertise, efficiency, attention to detail, and superior service is recognized by both our clients and peers.
Whether your organization is an emerging operation or a large, established business, our team of professionals will apply their years of tax experience and resources to help you identify areas of risk, and offer solutions that mitigate financial risk and tax compliance exposures.
Our areas of expertise include:
Conduct an impact assessment of the legal structure of the organization and the group at large.
Conduct impact analysis of the bottom line and profits after tax.
Review whether the financial year followed by the organization requires any modification / adopts a uniform financial year.
Review Internationally Accepted Accounting Standards have been followed while making existing financial Statements, in all aspects.
Review whether adequate resources are available to undertake tax compliance functions.
Review whether the processes adopted by the organization to ensure adherence and compliance with corporate tax are adequate.
We offer a wide range of services that include general compliance, the introduction of tax, finance, and accounting services, and global coordination and management of tax accounting projects.
At MS, we understand the complexity of tax laws and the challenges businesses face when it comes to tax compliance. As a leading tax and accounting consultancy in the UAE, we are well-positioned to help businesses navigate the new corporate tax regime. Our team of experienced tax consultants can provide tailored advice on corporate tax planning and compliance, ensuring that our clients remain fully compliant with the latest tax laws and regulations. Contact us today to find out how we can help you with your corporate tax requirements.
A natural person is regarded as a UAE Tax Resident if they meet the following criteria:
1) resides in the UAE regularly or as their primary residence and where they have their primary financial and personal interests.
2) was physically present in the UAE for 183 days or more over the course of a single 12-month period: or
3) was physically present in the UAE for 90 days or more in a 12-month period that followed, and the person is a national of the UAE, has a valid residency permit in the UAE, or is a citizen of any GCC Member State.
Where (i) he or she maintains a permanent address in the UAE; or (ii) he or she works or operates a business there.
What does the new UAE Tax Resident definition mean for people?
➝ Individuals will not be subject to personal income tax in the UAE as a result of the new UAE tax residency criteria being implemented.
➝ The personal income of individuals, whether from employment or other sources, is not taxed in the UAE. As a result, if a person satisfies the requirements listed above to be classified as a UAE Tax Resident, they would ordinarily not be subject to taxation on their personal income in the UAE.
➝ According to bilateral tax agreements the UAE has signed with other territories, many of which refer to UAE domestic laws for determining whether a person is a resident of the UAE for purposes of the treaty, the new Tax Resident definition provides individuals with additional clarity regarding their UAE tax residency position.
➝ The Decision does not change the fact that, for purposes of determining whether a person’s business income is subject to UAE taxation, the UAE Corporate Tax Law will treat foreign natural persons conducting business in the UAE as “Resident Persons” (as defined in the Corporate Tax Law). Whether or not the natural person is regarded as a tax resident in the UAE for other tax purposes has no bearing on this corporate tax law concept.
➝ The new definition of a juridical person generally refers to an entity that was established or otherwise recognized in accordance with UAE law or the laws of another country and that has a separate legal personality from its creators, owners, and directors. Limited liability companies, foundations, public or private joint stock companies, and other entity types that have distinct legal personalities under the relevant UAE mainland legislation or the rules of a free zone are examples of UAE juridical persons.
Things to Put in Mind for Successful Annual ADGM Submissions for 2024
If you are running a business in Abu Dhabi Global Market (ADGM), you are required to submit your annual accounts to the Registrar of Companies. This process can be quite overwhelming, but it is important to remember that accuracy is key. Here are some things to keep in mind when filling out your ADGM annual account submission:
It is imperative to comprehend the prerequisite obligations before embarking on completing the yearly account submission. The Abu Dhabi Global Market mandates several financial statements, namely a balance sheet, profit and loss statement, and cash flow statement. Ensuring that all essential paperwork and particulars are prepared ahead of time will facilitate a smooth progression in the process.
Be Accurate: When filling out your annual account submission, accuracy is key. Any errors or omissions could lead to penalties or fines. Double-check your figures and make sure everything is correct before submitting your accounts.
Be Timely: It is important to submit your annual accounts on time to avoid any penalties or fines. ADGM requires that annual accounts are submitted within six months of the financial year-end. Make sure you have enough time to prepare your accounts and submit them before the deadline.
Keep Good Records: To ensure accuracy, it is important to keep good records throughout the year. This includes keeping track of all your financial transactions and maintaining up-to-date financial statements. Having good records will make it easier to prepare your annual accounts and ensure that they are accurate.
Seek Professional Help: If you are not confident in your ability to prepare your annual accounts, it may be worth seeking professional help. This could be from a qualified accountant or a business advisory firm. They can help ensure that your accounts are accurate and compliant with ADGM regulations.
Concisely put, dispatching your yearly ADGM financial statements may seem challenging, yet meticulousness ought not to be disregarded. Comprehend the mandates, uphold proper documentation, and resort to expert guidance as needed. Adhering to these strategies guarantees that your reports are furnished punctually and diligently and embody the fiscal status quo of your enterprise.
Let US take you a quick look into the fact of how MS can make better Annual Account submissions of your Enterprises in ADGM.
1. Helps in being compliant with the ADGM Registration Authority
2. Professional guidance on the reporting requirements based on the company’s nature.
3. Timely Reminders and Submissions
5. Prepare, analyze & submit financial statements and supporting documents as per the applicable regime.
6. Helps you stay updated with the regulatory changes
We at MS are proud to announce our partnership with MASDAR Freezone
Are you an aspiring business owner looking to establish your Business in MASDAR Freezone Abu Dhabi, the thriving business hub of the Middle East?
Look no further! We at MS are proud to announce our partnership with MASDAR Freezone, a world-class business ecosystem located in Abu Dhabi, to offer comprehensive business setup assistance to entrepreneurs and businesses of all sizes.
As one of the leading business consultancy firms in the region, we understand the complexities and challenges of setting up a business in a foreign country. With our expertise in finance and business management, coupled with the extensive resources and support offered by MASDAR Freezone, we are well-equipped to guide you through the entire business setup process, from start to finish.
Why Choose MASDAR Freezone?
MASDAR Freezone is a strategic initiative by the Abu Dhabi government to promote sustainable development and innovation in the fields of clean energy, sustainability, and technology. Located in the heart of Abu Dhabi, MASDAR Freezone offers a conducive environment for thriving businesses, with state-of-the-art infrastructure, world-class facilities, and a range of business incentives and benefits.
As a business setup destination, MASDAR Freezone offers several advantages, including 100% foreign ownership, no corporate or personal income tax, no customs duties, and streamlined business processes. Additionally, businesses in MASDAR Freezone have access to a pool of talent from diverse industries, a strong support network, and excellent connectivity to global markets, making it an ideal location for startups and established businesses alike.
How we MS help you set up your business in MASDAR Freezone.
Setting up a business in a foreign country can be overwhelming, with numerous legal, financial, and operational considerations. Our team of experienced finance and business consultants can provide you with end-to-end business setup assistance, tailored to your unique requirements. Here are some of the services we offer:
Business Planning and Feasibility Analysis: We can help you develop a comprehensive business plan and conduct a feasibility analysis to assess the viability of your business idea in the local market. This includes market research, competitor analysis, financial projections, and risk assessment.
Company Registration and Licensing: We can guide you through the company registration and licensing process, ensuring compliance with local laws and regulations. This includes assistance with selecting the appropriate legal structure, preparing the necessary documentation, and liaising with government authorities.
Financial Management and Accounting: We can provide you with expert financial management and accounting services, including budgeting, financial forecasting, bookkeeping, payroll management, and tax planning, to help you maintain accurate financial records and comply with local financial regulations.
Human Resources and Talent Management: We can assist you with human resources and talent management, including recruitment, employee onboarding, performance management, and compliance with local labor laws. This ensures that you have the right talent in place to drive your business success.
Business Advisory and Support: We can provide ongoing business advisory and support services to help you navigate the challenges of operating a business in a foreign country. This includes strategic planning, risk management, business process optimization, and performance monitoring, to help you achieve your business goals.
Partner with Us for a Successful Business Setup in Abu Dhabi
With our partnership with MASDAR Freezone, we are committed to helping business owners and entrepreneurs establish their ventures in Abu Dhabi with confidence and ease. Our team of experienced finance and business consultants will work closely with you to understand your business requirements, provide personalized advice, and guide you through every step of the business setup process.
Whether you are a startup or an established business, our comprehensive business setup assistance will ensure that you are well-prepared to capitalize on the lucrative opportunities offered by Abu Dhabi’s dynamic business landscape.
After breathing in the energy of the booming business ecosystem in Abu Dhabi and the UAE day and night, we are all geared up to play a bigger part in the most crucial phase of Abu Dhabi’s growth story.
MS opens its new office this week atAbu Dhabi Global Market following our successful run of serving of our clients in the mainland. Our expansion into ADGM follows a growing demand for our services from various ADGM based entities. Now being part of one of the fastest growing and award-winning international financial center MS will serve a larger section offering our niche expertise to help achieve business and growth objectives.
MS will now be operating at ADGM square, Al Maryah Island to cater to our ADGM based client apart from continued operation in the mainland base office at the heart of the capital city.
MS ‘s philosophy of helping unleash the business potential in the region through our financial services while placing sustainability at the fore front closely resonates with ADGM’s commitment to establishing Abu Dhabi as a global leader in business development across industries.
This expansion of MS into ADGM is testimony to the result of determination, vision, and endurance. Our strong footing in the mainland, years of serving our diverse and growing clientele has instilled the confidence in us to best leverage this symbiotic relationship with ADGM.
Speaking about the new incorporation our founder and CEO Mr. Mohammed Shafeek said:
“MS is proud to receive ADGM license, which will allow us to conduct multiple services offerings for business in ADGM. The ADGM is a leading global hub that drives innovation and is at the forefront of business development. We believe our presence in ADGM will enable us to strengthen our position in the UAE and the region. We are also growing our team to meet the diverse needs of clients. We’ll be offering a broader range of services, including technology and compliance-related work in addition to what we currently offer: advisory accounting & taxes! I am confident that we can better serve our existing clientele as well as grow into something even bigger and exciting- taking off like wildfire.”
While at ADGM, in addition to offering our various financial services, team MS focuses on:
– Enlightening the international community with the local financial compliance & free-zone specific Tax regulations.
-Adding immense value through financial literacy to budding firms and contribute refreshing sessions of financial & tax advisory, with a keen focus on young entrepreneurs.
– MS also strives to promote women entrepreneurs and add vital value to their growth in the region.
-Educating and assisting businesses to navigate the changing tax landscape in the country in light of the introduction of the new Corporate Tax regime.
Continuing our legacy in the mainland, MS is now ready for exponential growth at ADGM and as promised will leave a deep footprint in this exciting financial center.
Mr. Mohammed Rizwan will be the point of contact of our ADGM operations, his expertise and knowledge of the dynamic market, makes him an ideal confidante. Mr. Mohammed would be happy to receive your queries at +97156 3997841, and alternatively you can also reach the team at info@ms-ca.com for further information or assistance.
About ADGM
ADGM is an international financial center and economic free-zone has played and continues to play a pivotal role in the exponential growth of Abu Dhabi. It is a dynamic space that represents the business attractiveness of the UAE, attracting major international players to set up at ADGM. It truly represents the potential this nation holds in terms of innovation and importantly also sustainability. It will set a global example and create history in various domain. We’re beyond thrilled to be part of this brilliant initiative.
Mature smalll business owners calculating finance bills of their activity. Business people using calculator to work. Closeup hands of man and woman calculating bills and expenses.
The UAE Cabinet of Ministers issued Resolution No 49/2021 on 28th April 2021 to amend the administrative penalties of the Tax Law, which came into effect on 28th June 2021.
The Cabinet Decision makes a number of fundamental changes to the Administrative Penalties regime, including regarding the mechanism for calculating the penalties for late payment of taxes and for making errors in tax return, tax assessments or refund applications. The significant among them is that late payment penalties are reduced from 1% per day to 4% per month. It encourages taxpayers to voluntarily correct previous tax declarations, as well as encouraging them to pay due taxes before the tax audit or assessment by the UAE Federal Tax Authority (FTA).
REDETERMINATION OF ADMINISTRATIVE PENALTIES
Cabinet Decision No. 49 of 2021 also provides an opportunity for the businesses to redetermine the amounts of unpaid administrative penalties, which were imposed on taxable person under the old penalty regime. Accordingly, the administrative penalties imposed under the previous resolution will be obtaining 70% reduction which are imposed before the effective date of the new administrative penalties under certain conditions as below:
The penalties must have been imposed under Cabinet Decision No 40 of 2017 before 28th June 2021.
The registrant must pay all taxes due by 31st December 2021.
By 31st December 2021, the registrant must pay 30% of the total administrative penalties due and unpaid by the effective date of the New Resolution.
If the above conditions are met, then FTA will redetermine the administrative penalties payable by the registrant at the end of 2021 and hence shall not be required to pay the remaining 70%.
On 28th June 2021, the Federal Tax Authority (FTA), has introduced a new dashboard for viewing the calculations relating to the re-determination of the administrative penalties in accordance with the same provision. Here, the taxpayer can view the total unpaid administrative penalties imposed before and after 28th June 2021.
UPDATES ON ‘MY PAYMENT’ PAGE
A new feature of the FTA’s ‘My Payment’ page is that the registrants can see the amount of their outstanding balance related to taxes and the amount related to administrative penalties.
Now, the taxpayer can view the following on the updated ‘My Payment’ page:
Tax Payable – The outstanding tax payable.
Late Registration Penalty – This is the outstanding late registration penalty.
Other penalties – The outstanding penalties other than late registration penalty.
Net payable amount – Total outstanding taxes and penalties
Total Credit – The total amount of credit the registrants have with the FTA.
Here are a few highlights from FTA’s workshop:
A person who was in a refund position as of 28 June 2021 but previously subject to administrative penalties will have the settlement automated in the system and shall not be subject to re-determination except for the excess unpaid penalties as on June 28, 2021
A person can pay 30% of the total penalties as of 28 June 2021 in instalments, and they are not obligated to pay it all at once. However, to benefit from redetermination, the payment of 30% must be made before 31st December 2021.
If a voluntary disclosure is made after 28 June 2021, the penalty will be calculated and applied based on Cabinet Decision No. (49) of 2021 and not as per the old penalty regime, even if it is to correct errors from past years.
ACTIONS TO TAKE
We recommend all taxpayers to review their new dashboards and make informed decisions by viewing the updated information. Also note that, in order to qualify for a redetermination, the tax payable amount mentioned in ‘My Payment’ page must be paid in full by 31 December 2021.
HOW MSATC CAN HELP?
Determine the amount of penalty due and suggest the action plan.
The UAE Cabinet of Ministers issued Decision No. 49/2021 amending provisions of Cabinet Decision No. 40/2017 regulating tax penalties, on 28th April 2021, the effective date being sixty days from the issuance date.
LET’S REVIEW THE HIGHLIGHTS:
Late payment penalties reduced from 1% per day to 4% per month.
300% cap still applies.
New starting date for calculating late payment penalties.
Reductions for prior penalties to be made.
LATE TAX PAYMENT PENALTIES
The most notable of the new amendments is that is that the late payment penalties have been reduced from 1% per day to 4% per month.
The new calculation of late payment penalties, (with a cap of 300%) will be as follows:
2% of the unpaid tax due on the day following the due date for payment.
4% monthly penalty due after one month from the payment due date.
PENALTIES ON VOLUNTARY DISCLOSURE
Fixed Penalties for submitting VD’s for incorrect VAT and Excise Returns has also been reduced to AED 1,000 for First VD and AED 2,000 for subsequent VD’s.
Further reductions or waivers also allowed in specific cases.
Also, the percentage based penalties for difference in Tax Amounts resulting from VD’s has also been reduced.
DUE DATE FOR LATE PAYMENT PENALTY CALCULATION
The new Decision states that the due date for the purposes of calculating late payment penalties shall be:
In the case of voluntary declaration, 20 business days from the date of its submission.
In the case of tax assessment, 20 business days from the date of its receipt.
DISCOUNTS FOR PREVIOUS PENALTIES
The Federal Tax Authority shall define the administrative penalties imposed prior to the effective date thereof that have not been paid, so that they are equal to 30% of the total unpaid penalties, where the following conditions are met:
Any of the administrative penalties stipulated in Cabinet Resolution No. (40) of 2017 was imposed on the Registrant and has not been fully paid.
The registrant has paid the following:
The due and payable tax up to 31 December 2021 at most; and
30% of the total payable administrative penalties unpaid until the effective date hereof up to 31 December 2021 at most.
HOW CAN MSATC HELP?
Check the consequences of delay/late payments or errors in the VAT Returns.
Ensure applicability of various provisions under the UAE VAT law.
Advice on the probable liability to the Authorities.
Suggest the best course of action in case of any liability to FTA.
