Violations And Penalties Under UAE Corporate Tax Law

Tally Solutions | Updated on: April 20, 2023

The Article 60 of the UAE corporate tax law dictates the assessment of corporate tax and penalties. As new decree laws are published by the Federal Tax Authority, it is important to keep up with the updates and changes.

Corporate tax assessment under the UAE corporate tax law

The assessment of corporate tax means analyzing and reviewing the taxpayer’s tax return details that were filed during the tax period, including those in the free zone. All the information filled in when filing the corporate tax return should be correctly and accurately filed to ensure precise tax calculations, such as liabilities.

The assessment will be as per the Tax Procedure laws of the state and the relevant law provisions outlined by the Authority.

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Request for assessment by a taxable person under the UAE corporate tax law

The FTA will put forth the specific conditions under which a taxable person may request for a tax assessment to be undertaken. These will be in accordance with the UAE corporate tax law. The FTA will only allow the assessment to happen if the conditions are met and will not entertain the assessment request if done otherwise.

The Authority has not outlined the conditions under which a taxable person can request an assessment yet. The Authority may request an assessment too.

Penalties imposed on a taxable person for violation of provisions of UAE corporate tax law

The Tax Procedures Law will determine the various penalties and fines that will be imposed on the taxpayer by the Authority. These penalties and fines will be imposed if any violations occur as per the law such as non-compliance with the rules and regulations of the UAE corporate tax law.

Penalty may include jail time and/or a fine up to a certain multiple of the unpaid tax amount. In some instances, it can be both, depending on the violation.

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