The Federal Tax Authority (FTA) has urged registrants who have not yet updated their tax records to take advantage of a newly granted grace period by the UAE Cabinet. This initiative is aimed at lessening the tax burden on the business sector and encouraging individuals and companies to meet their tax obligations. The government believes that this measure will further improve the UAE’s competitiveness in the business landscape.

The Cabinet decision allows registrants to update their tax record information from 1 January 2024 to 31 March 2025 without incurring any administrative penalties for failing to report necessary changes. If registrants were subjected to administrative penalties between 1 January 2024 and the start date of the grace period, those penalties will be automatically reversed, as confirmed by the FTA, which indicated that no action is required from the registrants for this reversal.

According to Cabinet Decision No. 74 of 2023, which outlines the Executive Regulations of the Federal Decree-Law No. 28 of 2022 on Tax Procedures, registrants must notify the FTA of any changes to their data within twenty business days. This includes critical information such as the business name and address, email address, trade license activities, legal entity type, and details concerning partnership agreements and articles of association.

In its continuing efforts to support taxpayers, the FTA has encouraged those needing further information to refer to the public clarification regarding the grace period for updating tax records. This clarification is available through the Public Clarifications service on the FTA’s official website at https://tax.gov.ae/en/. The service aims to keep taxpayers informed about technical aspects of taxes and their obligations, providing detailed explanations to facilitate compliance with tax legislation.