UAE Tax LawCabinet Resolution No. (40) of 2017 Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the State

Article (1) Definitions For the purposes of implementing the provisions of this Resolution, the following terms and expressions shall have the meanings assigned to each of them, unless the context requires otherwise: State : The United Arab Emirates. Minister : The Minister of Finance. Authority : The Federal Tax Authority.

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Cabinet Resolution of 2017 Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the State 2 Chairman : The Chairman of the Board of Directors of the Authority. Tax Law : Any federal law pursuant to which a federal tax is imposed. Administrative Penalties : Monetary amounts imposed on a Person by the Authority for violating the provi…

Article (2) Scope of Application Administrative penalties shall be imposed for the violations listed in Schedules No. (1), (2), and (3) attached to this Resolution.

Article (3) General Provisions The imposition of any administrative penalty under the provisions of this Resolution shall not result in exempting any person from the liability to pay the Tax Due in accordance with the provisions of the federal tax laws.

Article (4) Amendment of Administrative Penalties The Cabinet shall be competent to make any amendments to the Administrative Penalties stipulated in this Resolution, whether by addition, deletion, or modification.

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Cabinet Resolution of 2017 Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the State 4

Article (5) Objection A Person may object to the Administrative Penalties imposed thereon in accordance with the procedures stipulated in Federal Law No. (7) of 2017 Regarding Tax Procedures.

Article (6) Issuance of Executive Resolutions The Minister shall issue the necessary resolutions for the implementation of the provisions of this Resolution.

Article (7) Entry into Force The provisions of this Resolution shall enter into force from the date of its issuance, with the exception of the following: 1. Schedule (2) regarding the administrative violations and penalties related to the implementation of Federal Decree by Law No. (7) of 2017 Regarding Excise Tax, attached to this Resolution, shall enter into force from 1 October 2017. 2. Schedule (3) regarding the administrative violations and penalties related to the implementation of Federal Decree by Law No. (8) of 2017 Regarding Value Added Tax (VAT), attached to this Resolution, shall enter into force from 1 January 2018.

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Cabinet Resolution of 2017 Regarding the Admini…

Article (8) Publication This Resolution shall be published in the Official Gazette. Mohammed bin Rashid Al Maktoum Prime Minister Issued by Us: On: 4 Muharram 1439 A.H. Corresponding to: 24 September 2017 A.D.

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Cabinet Resolution of 2017 Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the State 6 Schedules of Administrative Violations and Penalties Attached to Cabinet Resolution No. (40) of 2017 Schedule No. (1) Regarding Administrative Violations and Penalties Related to the Implementation of Federal Law No. (7) of 2017 Regarding Tax Procedures No. Description of Violation Administrative Penalty in AED 1 The failure of the Person conducting Busine…

Article (21) of the Tax Procedures Law. (20,000) 14 The failure of the Registrant to calculate the tax on behalf of another person when the Registrant is obligated to do so under the Tax Law. 1. The Registrant shall be required to pay the penalty applicable for late payment of the Payable Tax, with a maximum of (300%), as follows: a. (2%) of the unpaid tax shall be due on the day following the payment due date, upon delay in paying the Payable Tax. b. A monthly penalty of (4%) shall be due one month after the payment due date, and on the same date monthly thereafter, on the amount of unpaid tax. 2. For the purposes of this penalty, the due date for payment shall be as follows: a. In the case…