The FTA Provided An Overview Of The Penalty Relief Introduced By Cabinet Decision No. 49 Of 2021 Which Amends Administrative Penalties
The Federal Tax Authority (FTA) confirmed during its first tax agent virtual session of 2021 that Cabinet Decision No. 49 of 2021 on Amending some Provisions of Cabinet Decision No 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE, provides relief as a measure to support businesses, and allows the re-determination of unpaid due administrative penalties which were imposed on taxable persons before 28 June 2021 – the effective date of the new decision.
The FTA organized its first tax agent virtual session of 2021 as part of its plan for ongoing communication with its strategic partners, and to introduce the latest developments regarding the tax legislative environment. The session was attended by 268 authorized tax agents and FTA representatives and officials. A detailed presentation on the implementation of the new decision and its relief for tax registrants was showcased – in addition to the conditions required to benefit from the re-determination of administrative penalties imposed on tax registrants. Cabinet Decision No. 49 of 2021 states three conditions that must all be met in order for tax registrants to benefit from the re-determination of unpaid administrative penalties to be 30% of the value due on 28th June 2021. The first condition is that the administrative penalty must be imposed under Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violating Tax Laws in the UAE before 28 June 2021, which is the effective date of the new decision, and remain outstanding on such date.
Federal Tax Authority
By virtue of this Federal Law by Decree a public federal authority shall be established under the name of the Federal Tax Authority. The headquarters of the authority shall be located in the city of Abu Dhabi. The authority shall be in charge of managing and collecting federal taxes and related fines, distributing tax-generated revenues and applying the tax-related procedures in force in the UAE.
The authority shall be managed by a board of directors chaired by the Minister of Finance and a sufficient number of members to be appointed and remunerated by a Cabinet resolution, based on the chairman’s nomination. The authority shall have an independent annual budget that shall be deemed as public funds and exempted from all taxes and fees.