The UAE’s Federal Tax Authority (FTA) has extended the grace period for tax penalty payments.
The authorities extended the grace period for the re-determination of administrative penalties of tax registrants until December 31, 2022 which will enable tax registrants to benefit from new deadline.
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The reduced administrative penalties amount to 30 per cent of the total unpaid penalties that were imposed before June 28, 2021 with the tax registrant having to pay all taxes by December 31, 2022.
The FTA said that the actual values resulting from the re-determination of administrative penalties should have been already reflected in the accounts of many eligible tax registrants who had met the conditions and paid the penalties by December 31, 2021.
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A review of some tax registrants’ records is still ongoing to identify if anyone else is eligible to benefit from the re-determination of the administrative penalties scheme.
Anurag Chaturvedi, CEO of Chartered House, said the decision will support tax registrants to fulfil their tax obligations.
