The UAE Federal Tax Authority (FTA) has issued an urgent reminder to businesses across the country to update their tax records before the grace period ends on March 31, 2025. This compliance requirement is part of the UAE’s ongoing efforts to enhance tax transparency, streamline regulatory processes, and ensure businesses adhere to the latest tax regulations.
Mandatory Update for All Registered Businesses
The FTA has urged all Value Added Tax (VAT) and Corporate Tax-registered entities to review and update their records to avoid potential penalties. The update process includes:
- Verifying business information to reflect any changes in ownership, trade license details, or company structure.
- Updating financial details to ensure compliance with VAT and Corporate Tax regulations.
- Confirming accurate contact information to receive timely FTA notifications and updates.
This initiative is particularly crucial as the UAE has introduced Corporate Tax from June 1, 2023, making compliance even more essential for businesses operating in the country.
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Penalties for Non-Compliance
Failure to update tax records before the deadline may lead to administrative penalties or potential restrictions on tax compliance services, including VAT return filing and tax refunds. The FTA has reiterated that businesses should take immediate action to ensure seamless operations and avoid disruptions.
How to Update Tax Records?
Businesses can update their tax records through the FTA’s official e-Services portal by following these steps:
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- Log in to the FTA’s e-Services platform.
- Review registered details and verify any necessary updates.
- Submit supporting documents (if required).
- Confirm changes and receive acknowledgment from the FTA.
For further assistance, businesses can contact the FTA’s customer support or seek professional guidance from legal and tax consultants.
Act Now to Avoid Last-Minute Delays
With just a few weeks left until the March 31 deadline, businesses are encouraged to take prompt action. Companies may consult experts for ensuring their tax records are up to date, avoiding penalties, and staying fully compliant with UAE tax laws.
