Legislation Details
- Full Title: Cabinet Resolution On the Administrative Penalties for Violations Related to the Application of Federal Decree- Law on the Taxation of Corporations and Businesses
- Law Type: Federal Decree
- Law Number: [No number provided]
- Issued Date: 10 Jul 2023
- Effective Date: 01 Aug 2023
- Official Gazette: No. 756
- Sector: Tax
- Status: Active
- Number of Articles: 10
- Chapters/Parts: 0
- Amendments: 1
Summary
This Cabinet Resolution establishes the administrative penalties for violations related to the application of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses. The Resolution aims to regulate the imposition of penalties on individuals and businesses that fail to comply with the requirements of the Corporate Tax Law. It outlines the specific penalties for various violations, such as failure to submit tax declarations, late payment of taxes, and providing inaccurate information. The Resolution is important for businesses operating in the UAE, as it sets clear guidelines for the consequences of non-compliance with the Corporate Tax Law. (Cabinet Resolution On the Administrative Penalties for Violations Related to the Application of Federal Decree- Law on the Taxation of Corporations and Businesses, 2023)
What is the scope and purpose of this law?
The scope of this Cabinet Resolution is to establish the administrative penalties for violations related to the application of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses, also known as the Corporate Tax Law. The purpose of the Resolution is to regulate the imposition of penalties on individuals and businesses that fail to comply with the requirements of the Corporate Tax Law. (Cabinet Resolution On the Administrative Penalties for Violations Related to the Application of Federal Decree- Law on the Taxation of Corporations and Businesses, 2023, Art. 2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- Tax: The Corporate Tax.
- The Tax Procedures Law: Federal Decree-Law No. (28) of 2022 on Tax Procedures.
- The Corporate Tax Law: Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses.
- Due Tax: The Tax that is calculated and levied under the provisions of the Corporate Tax Law.
- Administrative Penalties: Amounts imposed on the Person by the Authority for violating the provisions of the Tax Procedures Law, the Corporate Tax Law or the resolutions issued by the Cabinet for the implementation thereof.
- Tax Audit: A procedure undertaken by the Authority to examine the commercial records, information, data or goods related to a person to determine whether or not such person fulfills its obligations under the Tax Procedures Law or the Corporate Tax Law.
- Declaration: A declaration to be submitted pursuant to the provisions of Clauses (5) and (6) of Article (53) or Clause (1) of Article (55) of the Corporate Tax Law.
- Tax Difference: The difference between the due tax as calculated and the due tax as it should have been calculated.
(Cabinet Resolution On the Administrative Penalties for Violations Related to the Application of Federal Decree- Law on the Taxation of Corporations and Businesses, 2023, Art. 1)
What are the main obligations and requirements?
This Cabinet Resolution does not directly impose any obligations or requirements on individuals or businesses. Instead, it establishes the administrative penalties for violations related to the application of the Corporate Tax Law. The main obligations and requirements are set forth in the Corporate Tax Law itself, which this Resolution aims to enforce through the imposition of penalties. (Cabinet Resolution On the Administrative Penalties for Violations Related to the Application of Federal Decree- Law on the Taxation of Corporations and Businesses, 2023)
What are the penalties for non-compliance?
The Resolution provides a table of administrative penalties for various violations related to the application of the Corporate Tax Law. The penalties include:
- Failure to submit a tax declaration: AED 20,000 per month.
- Late payment of tax: 5% of the unpaid tax amount for the first 30 days, and 1% for each additional 30 days or part thereof.
- Providing inaccurate information: AED 50,000 per violation.
- Failure to maintain proper records: AED 10,000 per violation.
- Obstruction of a tax audit: AED 50,000 per violation.
The Resolution also specifies that if any penalty is imposed on a monthly basis, the date for any month that does not have a corresponding date shall be considered the last day of that month. (Cabinet Resolution On the Administrative Penalties for Violations Related to the Application of Federal Decree- Law on the Taxation of Corporations and Businesses, 2023, Art. 3)
When did this law come into effect?
This Cabinet Resolution was published in the Official Gazette and entered into force on 1 August 2023. (Cabinet Resolution On the Administrative Penalties for Violations Related to the Application of Federal Decree- Law on the Taxation of Corporations and Businesses, 2023, Art. 4)
How does this law interact with other UAE legislation?
This Cabinet Resolution is related to and supplements the following UAE legislation:
- Federal Decree-Law No. (28) of 2022 on Tax Procedures
- Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses (the Corporate Tax Law)
- Cabinet Resolution No. (40) of 2017 on the Administrative Penalties for the Violation of the Tax Laws in the State, as amended
The Resolution states that it applies notwithstanding the provisions of the previous Cabinet Resolution No. (40) of 2017, and establishes the specific administrative penalties for violations related to the application of the Corporate Tax Law. (Cabinet Resolution On the Administrative Penalties for Violations Related to the Application of Federal Decree- Law on the Taxation of Corporations and Businesses, 2023, Art. 2)
Source Documents
This article analyses Cabinet Resolution On the Administrative Penalties for Violations Related to the Application of Federal Decree- Law on the Taxation of Corporations and Businesses for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.