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The Federal Tax Authority (FTA) has issued a crucial reminder for all registrants who have not yet updated their tax records: an extended grace period is now in effect. Submissions made before the end of March 2025 will not face administrative penalties, providing a welcome relief for businesses.
In its announcement, the FTA emphasized the importance of maintaining accurate tax records, in line with the Cabinet Decision on the Executive Regulations of the Federal Decree-Law on Tax Procedures. Registrants are required to inform the FTA of any changes to their information within 20 business days using the approved forms and mechanisms. Failing to adhere to these notification requirements within the stipulated time frame could lead to administrative penalties.
The FTA has outlined the types of data that need updating during this legal window, which include:
- Business name and address
- Email address
- Trade license activities
- Legal entity type
- Partnership agreements for unincorporated partnerships
- Articles of association or equivalent documentation
- Nature of business
- Any addresses from which business activities are conducted
To further assist registrants, a decision was made last year to introduce a grace period allowing updates without fear of penalties. This grace period spans from January 1, 2024, to March 31, 2025. Registrants who have already faced fines during this time due to late updates will see those penalties waived and reimbursed.
The FTA reiterated that this measure is designed to support taxpayers by making compliance with tax regulations more accessible and straightforward. By simplifying tax processes, the authority aims to bolster businesses’ contributions to the national economy’s growth.
For those who need further clarification or have questions about this grace period, the FTA’s official website features a Public Clarifications service that provides valuable information.
Key Points to Remember:
- Extended grace period for tax record updates until March 31, 2025.
- No administrative penalties for updates submitted during this time.
- Required updates include critical business information such as name, address, and license details.
- Existing penalties during the grace period will be waived and reimbursed.
Stay proactive and ensure your tax information is up to date to take full advantage of this extended grace period!
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