Amnesty Scheme- VAT

Amnesty Scheme- VAT

Amnesty Scheme- VAT

The UAE launches an important amnesty scheme in which Taxpayers who currently have pending administrative penalties as on 28th June 2021 can reduce such penalties to 30%.

As per Cabinet Decision No. 49 of 2021 –If all below conditions are satisfied, the FTA would redetermine the penalties at the end of 2021 and accordingly, 70% of these penalties would be waived.

  • The administrative penalty is outstanding as on 28th June 2021.
  • Tax payable before or after 28th June 2021 should be settled in full by 31st December 2021.
  • 30% of the administrative penalties imposed before 28th June 2021 is required to be paid by 31st December 2021.

  • The reduction in penalties is a positive step because it should lead to better compliance among firms and, as a result, increased tax collections for the government. It is, without a doubt, the best Eid gift for business taxpayers.

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