UAE: How to benefit from the decision to redefine fines

The Federal Tax Authority called on those who are registered for tax, to expedite the benefit of the redefinition of administrative fines, equal to 30% of the total unpaid fines.

And she explained in a statement today, that there are only a few days left for qualified people to benefit from the “re-determination” until December 31, according to Cabinet Resolution No. (49) of 2021 amending some provisions of Cabinet Resolution No. (40) of 2017 regarding administrative fines. Which is imposed on the violation of tax laws in the country, which entered into force as of June 28, 2021.

3 terms

She added that Cabinet Resolution No. (49) of 2021 set three conditions that must be met in order to benefit from the redefinition of administrative fines imposed before last June 28; The first is that the administrative fine was imposed according to Cabinet Resolution No. (40) of 2017 before June 28, 2021 and has not been fully paid, and the second is that the registrant has paid the full tax payable on him, up to a maximum of December 31, 2021, meaning that he should not have any dues The third condition is the payment of 30% of the total unpaid administrative fines until June 28, 2021, with a maximum of December 31, 2021.

The "Federal Taxes" indicated that when the registrant fulfills these conditions, the administrative fines are re-set to equal 30% of the total unpaid fines, and they will appear on the registrant's account on the authority's electronic services portal after the date of December 31.

Registered support

The Director-General of the Federal Tax Authority, Khaled Ali Al-Bustani, said that Cabinet Resolution No. (49) of 2021 aims to support and support registrants in the tax system to fulfill their tax obligations, in a way that enhances the competitiveness of the state in the field of doing business.

Al-Basati renewed the call to take advantage of the Cabinet’s decision, which included many facilities, including providing a mechanism to redefine some of the fines that were previously imposed, by providing a great opportunity to help businesses to redefine administrative fines equal to 30% of the total unpaid fines, according to the conditions set by the decision.

He pointed out that in the framework of the authority's keenness to ensure a smooth and accurate application to benefit from the redefinition of administrative fines, and to identify other facilities included in the decision, the authority issued, several months ago, two general clarifications about the new decision on its website; They included a detailed explanation supported by practical examples of the mechanism for redefining some administrative fines that were imposed before June 28, 2021, and details of the amendments to the table of violations and tax administrative fines related to the application of Federal Law No. (7) of 2017 on tax procedures.

Payment settlement

The Federal Tax Authority clarified that when carrying out the procedures for redefining administrative fines, registrants can use the feature to choose the type of “settlement of payments” when making the payment of tax dues through the authority’s electronic services portal.

She pointed out that this feature allows allocating the amounts paid according to the payment preferences of each registrant, including the available options: paying the tax first, paying administrative fines first, or paying the oldest debt.

To benefit from the redefinition of fines; The Registrant must select the appropriate option from these options in order to ensure that the intended payment allocation results are achieved.

conversion period

The authority cautioned that it is necessary for the registrant to ensure that the payable tax is paid before the due date, to avoid any administrative fines related to late payment, bearing in mind that bank transfers usually take up to two or three working days, to be transferred from banks to the authority. Therefore, when making the payment, the registrant must take into account the period of each transfer to ensure that the authority receives the amounts due before their due date.

tax declaration

The Federal Tax Authority stressed the need to ensure that the tax return or voluntary declaration is submitted before the payment process is made, pointing out that if the registrant completes the payment process before submitting the tax return or voluntary declaration, and is entitled to pending or unpaid administrative fines in his account, the system The down payment will be allocated to administrative fines payable, since no tax payable is specified in the registrant's account when the payment is made.