The countdown has begun. Let’s act before it is too late. The UAE Federal Tax Authority has announced an urgent reminder for businesses and taxpayers to update their tax records before the March 2025 deadline. This initiative is to streamline tax regulations and ease the tax burden on registrants. This update is key for adherence to UAE tax regulations. This measure, active till March 31st, 2025, allows businesses who have failed to update its tax records on the EmaraTax portal without incurring penalties. Any failure to comply with the requirements after this deadline can result in penalties.
Let us have a complete guide to this crucial update.
Missed a tax Update: The FTA’s Grace Period Offers a Second Chance
The UAE Federal Tax Authority has offered a lifeline for businesses by providing a grace period to update tax records without incurring penalties. This initiative gives businesses an opportunity to update their tax details on the EmaraTax portal.
Companies registered with the FTA must notify any changes to its tax records within 20 business days, as per UAE Tax Procedures Law. Missing the deadline may result in fines. Thanks to the FTA grace period, businesses now have until March 31st, 2025, to update their tax records penalty-free.
What essential details need to be updated?
Accurate and up-to-date business records are key to efficient business operation and regulatory compliance. It is a perfect time for businessmen to update their tax records with the FTA. Below are the key details businesses must notify FTA:-
- Business name & Address
- Business activities
- Official contact no & email
- Expired/modified legal documents (trade license, MOA/AOA)
- Legal documents of shareholders/authorised signatories (Passport and Emirates ID)
What happens if you miss the FTA’s Grace period?
The deadline for updating tax registration without incurring penalties is March 31st, 2025. Tax registrants who have failed to update their records, make corrections to previous mistakes in their tax records etc within this grace period can be subject to delay penalties under UAE tax laws.
Businesses must seize this opportunity of the limited time window to ensure compliance and avoid penalties.
What happens when the Grace period of March 31st ends?
If one fails to update tax records by March 31st, 2025, they would face penalties as per FTA starting 1st April 2025. These administrative penalties may harm the business’s reputation and credibility. From April 01, 2025 onwards, tax registrants must strictly comply with the timeframe of 20 business days to update any expired records/documents or any amendments to its registration details. Failure to do so can result in delay penalties.
For example: The shareholding of Company A underwent a change on April 01, 2025. The Company must update its records on the EmaraTax portal within 20 business days of such a change taking place. Failure to do so can result in a penalty of AED 1,000/- for each violation in the first instance and AED 5,000/- if it is a repetition of the violation in the past 24 months.
Good News: Your Past Penalties to be Reversed
There is good news: Businesses penalized for not updating tax records between Jan 1, 2024, and at the start of the grace period will have its penalties automatically reversed. The Federal tax authority will automatically cancel the penalty charged without any action from the business side. This measure will lower the financial burden, enabling businesses to update tax records without any charges.
What are the simple steps to modify tax records on the Emara tax Portal?
Through the FTA portal, updating tax details is simple. Below are the steps to keep your tax records up to date:
- Login to Emara portal: Access to FTA’s official portal and sign in using credentials.
- Fill in the required tax details: Enter changes like changes in business activities, address, trade license activities, or authorised signatories.
- Upload supporting documents: Submit necessary documentation to verify and confirm the updates.
- Adhere to FTA guidelines: Focus on FTA guidelines to track the status of the application.
If one is uncertain about the process, FTA offers detailed guidelines on updating tax records. You can access detailed information on FTA’s website. The FTA has also published a public clarification on the grace period, which is available in the Public Clarification Service on the FTA website.
How does JAXA Chartered Accountant help in Updating Tax Records?
Jaxa is an UAE FTA approved Tax Agent and a trusted tax consultancy in the UAE. Our tax experts help businesses to manage the complexities of the UAE tax landscape. Our team will assist you in updating the tax records and aligning with UAE’s FTA guidelines.
Our experienced professionals support in:
- Verify and update tax details with ease.
- Handle the paperwork and submission seamlessly.
- Ensure continuous compliance and prevent future penalties.
- Effortlessly meet deadlines before March 31st, 2025.
Act Now!
The FTA’s grace period is a valuable relief for those who missed updating their tax records. Don’t wait until the last minute. Take full advantage of this grace period to update your tax information without incurring penalties.
If you need assistance, Partner with a UAE FTA approved Tax Agent such as Jaxa for our professional advice and guidance to make your business compliant and secure while maximizing the benefits of these initiatives. Stay compliant and up-to-date, take action now!!
