Taxpayers Encouraged to Update Records by March 31, 2025, to Avoid Penalties
Abu Dhabi, UAE — March 24, 2025:
The UAE Federal Tax Authority (FTA) has announced a grace period allowing registrants to update their tax records without incurring administrative penalties. This initiative, effective from January 1, 2024, to March 31, 2025, aims to encourage compliance and ensure accurate taxpayer information.
According to the FTA, registrants must notify the authority within 20 business days of any changes to their tax records, including:
- Business name, address, and email
- Trade license activities
- Legal entity type and associated documents
- Nature of the business
- Addresses from which business is conducted
Failure to update this information within the specified timeframe previously resulted in administrative penalties. However, during the grace period, registrants can amend their records without facing such fines. Additionally, any penalties imposed from January 1, 2024, will be reversed automatically once the required updates are completed. Registrants do not need to contact the FTA for this reversal.
The FTA has issued a public clarification (TAXP007) providing detailed guidance on the grace period and the procedures for updating tax records. Taxpayers are strongly encouraged to review this document to ensure compliance.
► FTA Clarification TAXP007 (PDF)
► FTA News Article on Grace Period
This initiative reflects the UAE government’s commitment to supporting businesses and enhancing the country’s competitiveness by reducing the tax burden and promoting compliance.
Percept’s Advisory:
At Percept, we recommend that all tax registrants use this opportunity to rectify and update their records. Our experts are offering free consultations to assist clients in understanding their obligations and ensuring their information is fully up to date with the FTA. Reach out to us today to avoid last-minute complications and make full use of the grace period before the March 31, 2025 deadline.
