§Article 4 — Publication and Entry into Force
This Decision shall be published in the Official Gazette and shall come into effect on 1
August 2023.
Table of Violations and Administrative Penalties Annexed to Cabinet Decision No. 75 of 2023 on Violations Related to the Application of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses
No. Description of Violation Administrative Penalty Amount in AED
1. Failure of the Person conducting a Business or One of the following penalties shall apply:
Business Activity or having a Tax obligation 1. 10,000 for each violation. under the Tax Procedures Law or the 2. 20,000 in each case of repeated Corporate Tax Law to keep the required violation within 24 months from the records and other information specified in the date of the last violation. Tax Procedures Law and the Corporate Tax Law.
2. Failure of the Person conducting Business or 5,000
Business Activity or having a Tax obligation under the Tax Procedures Law or the Corporate Tax Law to submit the data, records and documents related to Tax in Arabic to the Authority when requested.
3. 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 Corporate Tax Law monthly, up to a maximum of 10,000. and its implementing decisions.
4. Failure of the Registrant to inform the One of the following penalties shall apply:
Authority of any case that may require the 1. 1,000 for each violation. amendment of the information pertaining to 2. 5,000 in each case of repeated his Tax record kept by the Authority. violation within 24 months from the date of the last violation.
5. Failure of the Legal Representative to provide 1,000
notification of their appointment within the specified timeframes, in which case the penalties will be due from the Legal Representative's own funds.
6. Failure of the Legal Representative to file a Tax 1. 500 for each month, or part thereof, Return within the specified timeframes, in for the first twelve months.
which case the penalties will be due from the 2. 1,000 for each month, or part thereof, Legal Representative's own funds. from the thirteenth month onwards.
This penalty shall be imposed from the day following the expiry date of the timeframe within which the Tax Return must be submitted, and on the same date monthly thereafter.
7. Failure of the Registrant to submit a Tax Return 1. 500 for each month, or part thereof, within the timeframe specified in the for the first twelve months.
Corporate Tax Law. 2. 1,000 for each month, or part thereof, from the thirteenth month onwards.
This penalty shall be imposed from the day following the expiry date of the timeframe within which the Tax Return must be submitted, and on the same date monthly thereafter.
8. Failure of the Taxable Person to settle the 1. A monthly penalty of 14% per annum, Payable Tax. for each month or part thereof, 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.
9. The Registrant submits an incorrect Tax 500, unless the Person corrects his Tax
Return. Return before the expiry of the deadline
for the submission of the Tax Return according to the Corporate Tax Law.
10. The submission of a Voluntary Disclosure by A monthly penalty of 1% on the Tax
the Taxable Person in relation to errors in the Difference, for each month or part Tax Return, Tax Assessment or Tax refund thereof, to be applied as of the date application pursuant to Clauses 1 and 2 of following the due date of the relevant Tax Article 10 of the Tax Procedures Law. Return, the submission of the Tax refund
application, or the Notification of the Tax Assessment and until the date the Voluntary Disclosure is submitted.
11. Failure of the Taxable Person to submit a The following penalties shall apply:
Voluntary Disclosure in relation to errors in the 1. A fixed penalty of 15% on the Tax Tax Return, Tax Assessment or Tax refund Difference. application pursuant to Clauses 1 and 2 of 2. A monthly penalty of 1% on the Tax Article 10 of the Tax Procedures Law, before Difference, for each month or part being notified by the Authority that it will be thereof, to be applied as follows: subject to a Tax Audit. 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 relevant Tax Return, or the submission of the Tax refund application or Notification of the Tax Assessment and until the date the Voluntary Disclosure is submitted.
b. Where the Taxable Person fails to submit a Voluntary Disclosure, the penalty shall be imposed as of the date following the due date of the relevant Tax Return, or the submission of the Tax refund application or Notification of the
Tax Assessment and until the date of issuance of the Tax Assessment.
12. Failure of a Person subject to Tax Audit, his Tax 20,000
Agent or Legal Representative to offer facilitation to the Tax Auditor in violation of the provisions of Article 20 of the Tax Procedures Law, in which case the penalties will be due from the Person’s, Legal Representative’s or Tax Agent’s own funds, as applicable.
13. Failure of a Person to submit, or late 1. 500 for each month, or part thereof, submission of a Declaration to the Authority, for the first twelve months.
as required in accordance with the provisions 2. 1,000 for each month, or part thereof, of the Corporate Tax Law. from the thirteenth month onwards.
This penalty shall be imposed from the day following the expiry date of the timeframe within which the Declaration must be submitted, and on the same date monthly thereafter.
14. Failure of the Taxable Person to submit a Tax 10,000
Registration application within the timeframe specified by the Authority in accordance with the Corporate Tax Law. 1
1 Added as per Cabinet Decision No. 10 of 2024