Tax Procedures Public Clarification Redetermination of Administrative Penalties

On 28 April 2021, the Cabinet issued Decision No. 49 of 2021 on Amending some Provisions of Cabinet Decision No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE (“Cabinet Decision No. 49 of 2021”)1. Cabinet Decision No. 49 of 2021 amended some of the administrative penalties applicable to certain violations and allowed for a redetermination of some of the penalties already imposed.

On 30 December 2021, Cabinet Decision No. 49 of 2021 was amended by Cabinet Decision No. 108 of 2021 on the Amendment of Cabinet Decision No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE (“Cabinet Decision No. 108 of 2021”), with effect from 1 January 2022.

Cabinet Decision No. 108 of 2021 amends the timelines provided to benefit from the concessionary measures provided in the form of redetermination of administrative penalties.

This Public Clarification provides detailed information on the redetermination of some of the penalties already imposed.

Details relating to the amendments to administrative penalties in accordance with the First Article of Cabinet Decision No. 49 of 2021 have been discussed in the Tax Procedures Public Clarification “TAXP001 – Amendments to the Penalties Regime”, available on the FTA’s website

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