The Federal Tax Authority (FTA) of the UAE has introduced a grace period for businesses that have failed to update their tax registration information, extending the deadline for compliance until March 31, 2025. This move aims to help taxpayers align their records with the latest regulatory requirements without facing penalties. The grace period applies to businesses that have neglected to update their tax records between January 1, 2024, and the new deadline.
This decision is part of the FTA’s broader strategy to support businesses in meeting their tax obligations and ensure seamless tax operations across the UAE. Taxpayers who have not reported necessary updates, such as changes in business structure, ownership, or operations, will now have additional time to make the necessary amendments without incurring administrative fines. The FTA has emphasized the importance of keeping accurate and up-to-date tax records to avoid any complications during future audits or assessments.
According to FTA guidelines, businesses must use the grace period to correct any discrepancies in their tax registrations, which could include modifying details related to economic activity, address changes, or financial status. The authority also provided instructions for those who wish to update their tax information through their online portal, making it easier for businesses to comply with the new regulations.
By offering this grace period, the FTA aims to reduce the burden on businesses and encourage compliance with the UAE’s corporate tax laws, helping companies navigate the evolving regulatory landscape. Businesses are encouraged to act promptly to avoid potential penalties once the grace period ends in March 2025.
