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.