Federal Tax Authority (FTA) has provided an option to convert Penalty Payments into Installments on the Taxpayers Portal

The FTA has issued Cabinet Decision no. 105 of 2021 on the Procedures of Administrative Penalty Installments and Waivers, this decision is effective from March 1,2022. Pursuant to this decision the Taxpayer can submit a request to convert the penalty payments into Installments. This initiative will come as a huge sigh of relief for business that are burdened with heavy penalties.

Taxable person can apply for Installments of penalty or fine if they fulfil below conditions:

• 1.
• Request can be made for unpaid penalty only;

• 2.
• The amount of penalties subject to instalment should not be less than AED 50,000;

• 3.
• Taxable person can apply for Installments of Penalties, if these penalties are not currently disputed in front of the Tax Disputes Resolution Committee (TDRC) or Federal Courts;

• 4.
• Taxable person has to settle the tax due for tax period for which instalment is requested.

The FTA has activated a Tab on the Taxpayer’s portal for lodging requests for converting Penalties into Installments:

Please note that this memo is for information purposes only and should not be construed as an advice. It does not necessarily cover every aspect of the
topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.

If you would like to discuss Tax & VAT services, please drop us an email at info@premier-brains.com or call us at + 971 4 3542959.

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