§Article 1 — Definitions1
In the application of the provisions of this Decision, the following words and expressions shall have the meanings assigned against each, unless the context requires otherwise:
State : United Arab Emirates.
Minister : Minister of Finance.
Authority : Federal Tax Authority.
Tax Procedures: Federal Decree-Law No. 28 of 2022 on Tax Procedures, and its Law amendments.
Excise Tax Law : Federal Decree-Law No. 7 of 2017 on Excise Tax, and its amendments.
Value Added Tax : Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments.
Tax Law : Excise Tax Law and Value Added Tax Law for purposes of this decision.
Administrative : Monetary amounts imposed on the Person by the Authority for Penalties violating the provisions of the Tax Procedures Law or the Tax Law. Person : Natural or legal person.
Business : Any activity conducted regularly, on an ongoing basis and independently by any Person, in any location, such as industrial, commercial, agricultural, professional, service or excavation activities or anything related to the use of tangible or intangible property.
Taxable Person : Any Person subject to tax under the provisions of the relevant Tax Law.
Tax Return : Information and data specified for tax purposes and submitted by a Taxable Person in accordance with a form prepared by the Authority.
Tax Registration : A procedure whereby the Taxable Person or his Legal Representative registers with the Authority for tax purposes.
Registrant : The Taxable Person who has been issued with a Tax Registration Number (TRN).
1 Article amended as per Cabinet Decision No. 129 of 2025.
Cabinet Decision No. 40 of 2017 and its amendments – As published by the Ministry of Finance 2 Legal : The manager of a company or guardian, trustee or curator with Representative regard to incapacitated Persons or Persons with diminished capacity, or the court-appointed bankruptcy trustee with regard to a company undergoing bankruptcy, or any Person legally appointed to represent another Person.
Due Tax : Tax that is calculated and imposed pursuant to the provision of the Tax Law.
Payable Tax : Tax that has become due for payment to the Authority.
Tax Assessment : A decision issued by the Authority and is related to the Payable Tax or recoverable tax.
Notification : Notification to the relevant Person or his Tax Agent or Legal Representative of the decisions issued by the Authority through the means stated in the Tax Procedures Law and its Executive Regulation.
Voluntary : A form prepared by the Authority pursuant to which the Taxpayer Disclosure notifies the Authority of any error or omission in the Tax Return, Tax Assessment or tax refund application in accordance with the provisions of the Tax Procedures Law.
Tax Audit : A procedure undertaken by the Authority to inspect the commercial records, information, data or goods related to a Person to determine whether the Person has fulfilled his obligations under the Tax Procedures Law or the Tax Law.
Tax Difference : The difference between the Due Tax as calculated and the Due Tax as it should have been calculated.
§Article 8 — Publication
This Decision shall be published in the Official Gazette.
Cabinet Decision No. 40 of 2017 and its amendments – As published by the Ministry of Finance 4 Table No. 1 On Violations and Administrative Penalties related to the Implementation of Tax Procedures Law2 No. Description of Violation Administrative Penalty in AED 1 Failure of the Person conducting One of the following two penalties shall Business or who has an obligation under be imposed:
the Tax Procedures Law or the Tax Law to 1. 10,000 for each violation.
keep the required records and other 2. 20,000 in each case of repeated information specified in the Tax violation within 24 months from the Procedures Law and the Tax Law. date of the last violation.
2 Failure of the Person conducting 5,000 Business or who has an obligation under the Tax Procedures Law or the Tax Law to submit the data, records, and documents related to tax in Arabic to the Authority when requested.
3 Failure of the Taxable Person to submit a 10,000 registration application within the timeframe specified in the Tax Law.
4 Failure of the Registrant to submit a 1,000 in case of late submission of the deregistration application within the application and on the same date timeframe specified in the Tax Law.3 monthly, up to a maximum of 10,000.
5 Failure of the Registrant to inform the One of the following two penalties shall Authority of any case that may require be imposed:
the amendment of the information 1. 1,000 for each violation.
pertaining to his tax record kept by 2. 5,000 in each case of repeated Authority. violation within 24 months from the date of the last violation.
2 Table amended as per Cabinet Decision No. 129 of 2025 (effective from 14 April 2026). 3 In accordance with Cabinet Decision No. 49 of 2021, if any penalty is to be imposed on the same date
monthly, the date for a month that does not contain a corresponding date shall be considered as the first day of the following month. The penalty for all other months shall be imposed on the date the monthly penalty was first imposed.
Cabinet Decision No. 40 of 2017 and its amendments – As published by the Ministry of Finance 5 6 Failure of the Legal Representative of the 1,000 Taxable Person to provide Notification of their appointment within the specified timeframes, in which case the Penalties will be due from the Legal Representative’s own funds.
7 Failure of the Legal Representative for 1,000 for the first time.
the Taxable Person to file a Tax Return 2,000 in case of repetition within 24 within the specified timeframes, in which months.
case the Penalties will be due from the Legal Representative’s own funds.
8 Failure of the Registrant to submit the 1,000 for the first time.
Tax Return within the timeframe 2,000 in case of repetition within 24 specified in the Tax Law. months.
9 Failure of the Taxable Person to settle 1. A monthly penalty of (14%) per the Payable Tax within the timeframe annum, for each month or part specified in the Tax Law. thereof, imposed on the unsettled Payable Tax amount from the day following the due date of payment and on the same date monthly thereafter.
2. For the purposes of this penalty, the due date of payment in the case of the Voluntary Disclosure and Tax Assessment, shall be as follows:
a. 20 business days from the date of submission, in the case of a Voluntary Disclosure.
b. 20 business days from the date of receipt, in the case of a Tax Assessment.
4 In accordance with Cabinet Decision No. 49 of 2021, if any penalty is to be imposed on the same date
monthly, the date for a month that does not contain a corresponding date shall be considered as the first day of the following month. The penalty for all other months shall be imposed on the date the monthly penalty was first imposed.
Cabinet Decision No. 40 of 2017 and its amendments – As published by the Ministry of Finance 6 10 The Registrant submits an incorrect Tax 500, unless the Registrant takes one of Return. the following actions:
1. Corrects his Tax Return within the deadline specified for submitting the Tax Return pursuant to the Tax Law.
2. Submits a Voluntary Disclosure to correct the Tax Return without resulting in a difference in the amount of Due Tax.
11 The submission of a Voluntary Disclosure A monthly penalty of 1% on the Tax by the Taxable Person or the Taxpayer on Difference, for each month or part errors in the Tax Return, Tax Assessment thereof, to be applied as of the date or tax refund application pursuant to following the due date of the Tax Return, Clauses 1 and 2 of Article 10 of the Tax or submission of the relevant tax refund Procedures Law. application until the date of the Voluntary Disclosure is submitted.
12 Failure of the Taxable Person or the The two following penalties shall be Taxpayer to submit a Voluntary imposed:
Disclosure in relation to errors in the Tax 1. A fixed penalty of 15% on the Tax Return, Tax Assessment, or tax refund Difference.
application before being notified by the Authority that it will be subject to a Tax 2. A monthly penalty of 1% on the Tax Audit. Difference, for each month or part thereof, to be calculated as follows:
a. Where the Taxable Person submits a Voluntary Disclosure after being notified that it will be subject to a Tax Audit by the Authority, the penalty shall be imposed for the period from the day following the due date of the Tax Return, or the submission of the relevant tax refund application until the date of submitting the Voluntary Disclosure.
b. Where the Taxable Person fails to submit a Voluntary Disclosure, the
Cabinet Decision No. 40 of 2017 and its amendments – As published by the Ministry of Finance 7 penalty shall be imposed as of the date following the due date of the Tax Return, or the submission of the relevant tax refund application until the date of issuance of the Tax Assessment.
13 Failure of the Person subject to Tax 20,000 Audit, his Tax Agent, or Legal Representative to offer facilitation to the Tax Auditor in violation of the provisions of Article 20 of the Tax Procedures Law, provided that the penalties in this case will be due from the Person’s, his Legal Representative’s, or Tax Agent’s own funds, as applicable.
14 Failure of the Registrant to calculate tax 1. A monthly penalty of 14% per annum, on behalf of another Person where the for each month or part thereof, Registrant Taxable Person is obliged to imposed on the unsettled amount of do so under the Tax Law. Payable Tax, from the day following the due date of payment and on the same date monthly thereafter.
2. For the purposes of this penalty, the due date of payment in the case of the Voluntary Disclosure and Tax Assessment, shall be as follows:
a. 20 business days from the date of submission, in the case of a Voluntary Disclosure.
b. 20 business days from the date of receipt, in the case of a Tax Assessment.
5 In accordance with Cabinet Decision No. 49 of 2021, if any penalty is to be imposed on the same date
monthly, the date for a month that does not contain a corresponding date shall be considered as the first day of the following month. The penalty for all other months shall be imposed on the date the monthly penalty was first imposed.
Cabinet Decision No. 40 of 2017 and its amendments – As published by the Ministry of Finance 8 15 The failure of the Person to calculate any 50% of the unpaid or undeclared Tax. tax that may be due on the import of goods as per the Tax Law.
Table No. 2 On Violations and Administrative Penalties related to the Implementation of Federal Decree-Law No. 7 of 2017 on Excise Tax6 No. Description of Violation Administrative Penalty in AED 1 Failure of the Taxable Person to display 5,000 prices inclusive of Tax.
2 Failure to comply with the conditions and The penalty shall be the higher of 50,000 procedures of transferring Excise Goods or 50% of the Tax, if applicable, from a Designated Zone to another chargeable on the goods in relation to the Designated Zone, and the mechanism of violation.
preserving, storing, and processing such Excise Goods.
3 Failure of the Taxable Person to provide 5,000 for the first time.
the Authority with the price lists of the 10,000 in case of repetition.
Excise Good that it produces, imports or sells.
Table No. 3 On Violations and Administrative Penalties related to the Implementation of Value Added Tax Law7 No. Description of Violation Administrative Penalty in AED 1 Failure of the Taxable Person to display 5,000 prices inclusive of Tax.
2 Failure of the Taxable Person to notify 2,500 the Authority of applying tax based on
6 Table amended as per Cabinet Decision No. 49 of 2021.
7 Table amended as per Cabinet Decision No. 129 of 2025 (effective from 14 April 2026).
Cabinet Decision No. 40 of 2017 and its amendments – As published by the Ministry of Finance 9 Margin.
3 Failure to comply with the required The penalty shall be the higher of 50,000 conditions and procedures related to or 50% of the Tax, if applicable, keeping the Goods in a Designated Zone chargeable on the goods in relation to the or moving them to another Designated violation.
Zone.
4 Failure of the Taxable Person to issue a 2,500 for each detected case.
Tax Invoice or the alternative document when making any supply within the period legally specified.
5 Failure of the Taxable Person to issue a 2,500 for each detected case.
Tax Credit Note or the alternative document within the period legally specified.
6 Failure of the Taxable Person to comply 2,500 for each detected case.
with the conditions and procedures regarding the issuance of a Tax Invoice and a Tax Credit Note electronically.
Cabinet Decision No. 40 of 2017 and its amendments – As published by the Ministry of Finance 10