FTA reduces administrative penalties for tax violations — all registrants — effective 14 April 2026
The Federal Tax Authority (FTA) has implemented Cabinet Decision No. 129 of 2025, which reduces administrative penalties for various tax law violations including late payment, incorrect returns, and failure to notify the authority of changes. The amendments apply to all VAT and Excise Tax registrants and are designed to encourage voluntary compliance and ease the tax burden on businesses.
The analysis — automated & source-checked
- Applies to
- Tax · UAE
- What to do
- Review the new penalty structure under Cabinet Decision No. 129 of 2025. If you have outstanding tax violations or errors in your records, file a voluntary disclosure with the FTA to benefit from reduced penalties. Ensure all tax documents are submitted in Arabic and notify the FTA promptly of any changes to your tax record or legal representative.
Key penalty reductions include: failure to submit tax documents in Arabic reduced from AED 20,000 to AED 5,000; failure to notify the FTA of record amendments reduced from AED 5,000–10,000 to AED 1,000–5,000; and legal representative notification failure reduced from AED 10,000 to AED 1,000. The amendments also cover penalties for late tax payment, incorrect returns, and voluntary disclosure submissions. The FTA emphasises that the changes support voluntary compliance, prompt correction of tax records, and alignment with international best practices. Registrants are encouraged to use the new facilitations to regularise their positions without exposure to significant financial penalties.
Source
“The Federal Tax Authority (FTA) has announced the entry into force of Cabinet Decision No. (129) of 2025 amending certain provisions of Cabinet Decision No. (40) of 2017 on administrative penalties imposed for violations of tax laws in the UAE, following its effective date on Tuesday, 14 April 2026.”
— Federal Tax Authority, 9 Jun 2026
Source: Federal Tax Authority — official 9 Jun 2026 Read the original ↗ More from Federal Tax Authority →
Quick answers
What do I need to do?
Review the new penalty structure under Cabinet Decision No. 129 of 2025. If you have outstanding tax violations or errors in your records, file a voluntary disclosure with the FTA to benefit from reduced penalties. Ensure all tax documents are submitted in Arabic and notify the FTA promptly of any changes to your tax record or legal representative.
Who issued this?
Federal Tax Authority (UAE).
When was it announced?
9 Jun 2026.
Where can I read the original?
Read the original at Federal Tax Authority: https://tax.gov.ae/en/media.centre/News/federal.tax.authority.announces.entry.into.force.of.the.decision.amending.administrative.penalties.imposed.for.violations.of.tax.legislation.and.calls.on.registrants.to.benefit.from.the.advantages.of.the.new.decision.aspx
Subscribe — free
Get the next change before it's a deadline
The whole front, every morning. Free.