The UAE Cabinet have issued two decisions regarding administrative fines for tax laws offenders and the controls of fines refunding and exemption:
• Re-determining the administrative fines imposed on the registrant before June 28, 2021, to equal (30%) of the total amount according to some controls.
• Extension of the grace period to December 31, 2022.
• It is permissible to approve the installment of administrative fines in the event: The request for installment is in respect of unpaid administrative fines only, and the fines for a person are not less than AED 50,000.
• The administrative fines required to be paid in installments shall not be in dispute before the Tax Dispute Committee or the competent courts.
• There shall be no tax payable by the person for the required tax period.
Exemption rules:
• The violation for which the administrative fines should not be related to a crime of tax evasion, and the application should be submitted within the period specified by the committee.
• That the person’s request is related to one of the 9 cases, including death, illness, precautionary restrictions, and others.