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
Business to keep the required records
and other information specified in the
Tax Procedures Law and the Tax Law.
(10,000) for the first time.
(20,000) in case of repetition.
2 The failure of the Person conducting
Business to submit the data, records,
and documents related to Tax in the
Arabic language to the Authority when
requested.
(20,000)
3 The failure of the Taxable Person to
submit a registration application within
the timeframe specified in the Tax Law.
(10,000)
4 The failure of the Registrant to submit a
deregistration application within the
timeframe specified in the Tax Law.
(1,000) for the delay in submitting the
application, and on the same date
monthly thereafter, up to a maximum of
(10,000).
5 The failure of the Registrant to notify
the Authority of any case that may
require the amendment of the
information on their tax record
maintained by the Authority.
(5,000) for the first time.
(10,000) in case of repetition.
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Cabinet Resolution of 2017 Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the
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6 The failure of the Legal Representative
of the Taxable Person to notify the
Authority of their appointment as a
Legal Representative within the
specified timeframes, provided that the
penalties in this case shall be paid from
the Legal Representative's own funds.
(10,000)
7 The failure of the Legal Representative
of the Taxable Person to file a Tax
Return within the specified timeframes,
provided that the penalties in this case
shall be paid from the Legal
Representative's own funds.
(1,000) for the first time.
(2,000) in case of repetition within a
period of (24) months.
8 The failure of the Registrant to submit a
Tax Return within the timeframe
specified in the Tax Law.
(1,000) for the first time.
(2,000) in case of repetition within a
period of (24) months.
9 Failure of the Taxable Person to pay the
tax shown as Payable Tax in the Tax
Return, the submitted Voluntary
Disclosure, or the Tax Assessment that
they were notified of within the
timeframe specified in the Tax Law.
1. The Taxable Person shall be
required to pay the penalty
applicable for late payment of the
Payable Tax, up to a maximum of
(300%), as follows:
a. (2%) of the unpaid tax is 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
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Cabinet Resolution of 2017 Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the
State 8
payment due date, and on the
same date monthly thereafter,
on the amount of unpaid tax.
2. For the purposes of this penalty, the
payment due date shall be as
follows:
a. In the case of a Voluntary
Disclosure, (20) working days
from the date of its submission.
b. In the case of a Tax Assessment,
(20) working days from the date
of its receipt.
10 Where a Registrant submits an
incorrect Tax Return.
1. A fixed penalty shall be imposed:
(1,000) for the first time. (2,000) in
case of repetition.
2. As an exception to clause (1) of this
penalty, if the incorrect Tax Return
results in a tax difference that is less
than the fixed penalty mentioned in
clause (1) of this penalty, a penalty
equal to the tax difference shall be
imposed, provided that it is not less
than (500) dirhams.
3. Anyone who corrects their Tax
Return before the payment due date
shall be exempted from the penalty
specified in clauses (1) and (2) of
this penalty.
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Cabinet Resolution of 2017 Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the
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11 Where a Person / taxpayer submits a
Voluntary Disclosure for errors in the
Tax Return, Tax Assessment, or tax
refund application in accordance with
clauses (1) and (2) of Article (10) of the
Tax Procedures Law.
Without prejudice to what may result
from the penalty mentioned in clause
(10) of this schedule, a proportional
penalty shall be imposed on the
amount of the difference between the
tax that was calculated and the tax that
should have been calculated, as follows:
1. (5%) of the difference amount if the
Voluntary Disclosure is submitted
within one year from the due date
of the Tax Return, Tax Assessment,
or the relevant tax refund
application.
2. (10%) of the difference amount if
the Voluntary Disclosure is
submitted during the second year
from the due date of the Tax Return,
Tax Assessment, or the relevant tax
refund application.
3. (20%) of the difference amount if
the Voluntary Disclosure is
submitted during the third year
from the due date of the Tax Return,
Tax Assessment, or the relevant tax
refund application.
4. (30%) of the difference amount if
the Voluntary Disclosure is
submitted during the fourth year
from the due date of the Tax Return,
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Cabinet Resolution of 2017 Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the
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Tax Assessment, or the relevant tax
refund application.
5. (40%) of the difference amount if
the Voluntary Disclosure is
submitted after the fourth year from
the due date of the Tax Return, Tax
Assessment, or the relevant tax
refund application.
12 The failure of the Person / taxpayer to
make a Voluntary Disclosure for an
error in the Tax Return, Tax
Assessment, or tax refund application,
in accordance with clauses (1) and (2)
of Article (10) of the Tax Procedures
Law, before being notified of the
Authority's tax audit.
Without prejudice to what may result
from the penalty mentioned in clause
(10) of this schedule, the following shall
be imposed on the Person:
1. A penalty of (50%) of the error
amount.
2. A penalty of (4%) per month or part
thereof on any of the following:
a. The unpaid tax to the Authority,
from the due date of payment
for the relevant tax period until
the date of receipt of the Tax
Assessment.
b. The tax that was not returned to
the Authority due to a tax refund
received without entitlement,
from the date the refund was
received from the Authority until
the date of receipt of the Tax
Assessment.
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Cabinet Resolution of 2017 Regarding the Administrative Penalties Imposed for Violations of Tax Laws in the
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13 The failure of the Person conducting
Business to provide facilities to the tax
auditor in violation of the provisions of
