Introduction – Chapter 18 Violations and Penalties under the UAE Corporate Tax Law

Article 60 of the UAE Corporate Tax Law provides for the assessment of Corporate Tax. Assessment of tax refers to the reviewing and evaluation of information filed in the Tax Return by the Taxable Person. This is done to ensure that the information filed is correct and there is no foul play by the taxpayer to evade payment of tax liability due.

Furthermore, the Law also provides for penalties in cases of violations or non-compliance of Corporate Tax procedures by Taxable Persons under the UAE Corporate Tax Law.

Article 60 – Assessment of Corporate Tax and Penalties

• Corporate Tax Assessment under the UAE Corporate Tax Law

The assessment of Corporate Taxes of a Taxable Person shall be undertaken in consonance with the Tax Procedure laws of the State as well as the relevant decisions issued for the implementation of the provisions of the Law.

• Request for Assessment by a Taxable Person under the UAE Corporate Tax Law

Further, a Taxable Person can also request for the assessment of Corporate Tax by the Authority. For that purpose, the Federal Tax Authority can issue situations, conditions and circumstances under which:

1. Such a request may be made by the Taxable Person or,
2. A Corporate Tax Assessment is issued by the Federal Tax Authority

• Penalties imposed on Taxable Person for violation of provisions of UAE Corporate Tax Law

Penalties and fines, for non-compliance with the provisions of the Law shall be determined according to:

1. The Tax Procedures Law; and,
2. The relevant decisions issued for implementation of the provisions of the Corporate Tax Law.

FAQs

1. What are the consequences for violation of provisions of UAE Corporate Tax Law?
   There can be many consequences like penalties, fines, and in some rare cases even imprisonment.
2. How are penalties and fines determined for violations of the provisions of UAE Corporate Tax Law?
   The penalties and fines are determined as per the Tax Procedures Law and the relevant decisions issued for implementation.
3. What is the assessment of Corporate Tax under the UAE Corporate Tax Law?
   The assessment of Corporate Tax refers to the reviewing and evaluation of information filed in the Tax Return by the Taxable Person. This is done to ensure that the information filed is correct and there is no foul play by the taxpayer to evade payment of tax liability due.
4. Who can request for an assessment of Corporate Tax by the Federal Tax Authority under the UAE Corporate Tax Law?
   A Taxable Person can request for an assessment of Corporate Tax by the Federal Tax Authority (FTA).
5. How can businesses ensure compliance with UAE Corporate Tax Law?
   Businesses can ensure compliance with UAE Corporate Tax Law by maintaining accurate records of their financial transactions, filing timely and accurate Tax Returns, and seeking the advice of a UAE Corporate Tax consultant.