New amendments to UAE tax regulations have come into force, with the Federal Tax Authority (FTA) confirming reduced administrative penalties under Cabinet Decision No. 129 of 2025.
The changes aim to ease the burden on businesses, support compliance, and help taxpayers regularise their positions. Updates apply across VAT, excise tax, and broader tax procedures, encouraging voluntary disclosures and timely record updates.
Several fines have been significantly lowered. Penalties for failing to submit documents in Arabic have dropped from Dh20,000 to Dh5,000, while late updates to tax records now start from Dh1,000 instead of Dh5,000. Other reductions target late payments, incorrect filings, and disclosure-related violations.
The move reflects a broader shift towards a more flexible, business-friendly tax environment, aligned with international best practices.
Gulf Economist Staff Writer