Cabinet Decision No. 129 of 2025 amending UAE administrative tax penalties took effect on 14 April 2026. The Federal Tax Authority said the changes reduce or revise penalties for a range of violations under the Tax Procedures, VAT and Excise Tax legislation.
Examples of the changes
The FTA highlighted several reductions. The penalty for failing to provide requested tax-related records and documents in Arabic fell from AED 20,000 to AED 5,000. The penalty for failing to notify the FTA of a change that affects a tax record became AED 1,000 per violation, rising to AED 5,000 if the same violation is repeated within 24 months. The penalty for a legal representative’s failure to notify the FTA of an appointment fell from AED 10,000 to AED 1,000, payable from that representative’s own funds.
The amendments also cover late payment, incorrect returns and voluntary disclosures. The exact amount depends on the type of violation, timing and applicable rules, so businesses should not assume every penalty has been cancelled or reduced in the same way.
Use the change to review compliance records
- Check whether registered details, authorised signatories and contact information are current in EmaraTax.
- Review open penalty notices and the date of the underlying violation before calculating any revised amount.
- Correct inaccurate returns or records promptly; where a voluntary disclosure is required, assess the rules before submitting it.
- Keep evidence of corrective actions and communications with the FTA.
The FTA encouraged registrants with violations to regularise their position, but the decision does not remove the need to meet filing, payment and notification obligations.
Official source: FTA announcement on the amended administrative penalties.
This article is a general summary. Review the current decision and your specific notice or tax position before taking action.
