Introduction:
Staying compliant with UAE tax laws is more critical than ever. In April 2021, the UAE Cabinet issued Cabinet Decision No. 49 of 2021, which updates penalties for violations of tax laws—amending Cabinet Decision No. 40 of 2017. Here’s what your business needs to know to avoid fines.

Key Highlights of the New Decision:
Revised Penalty Tables:
The new decision includes comprehensive tables listing fines for violations related to tax procedures, excise tax, and VAT. Some examples:

• Failure to keep proper records: AED 10,000 for the first offense, AED 20,000 for repeat offenses.
• Submitting incorrect tax returns: AED 1,000 for the first time, AED 2,000 for repeat offenses within 24 months.
• Failure to settle payable tax: Up to 300% of the unpaid tax with monthly penalties of 4%.

Voluntary Disclosure Penalties:
If businesses fail to voluntarily disclose errors before an FTA audit, they can face up to 50% of the unpaid tax and monthly penalties of 4% for each month of delay.

Reduction in Old Penalties:
Businesses can benefit from a 30% reduction in unpaid penalties (if they pay 30% of the total and settle all payable tax by Dec 31, 2021).

What This Means for Your Business:
With increased scrutiny, businesses must:

• Keep records up to date
• Submit accurate tax returns and timely disclosures
• Seeking professional guidance to avoid costly mistakes

Attach the Official Document:
Download the complete Cabinet Decision No. 49 of 2021 for your reference here:
📎 Download PDF
(Here, you can attach the PDF file Cabinet Decision No 49 of 2021 For Publishing.pdf for your readers to access directly.)

Call to Action:
At Capital Zone Accounting, we help UAE businesses stay compliant and avoid hefty fines.
Contact us today for a compliance review or tax advisory session!