The Art of Liquidation: Strategies for Success

The Art of Liquidation

In the ever-changing landscape of business, there may come a time when liquidation becomes the most viable option for a company. Whether due to financial distress, strategic reorganization, or regulatory requirements, navigating the process of liquidation requires careful planning and strategic execution. At RBS Auditors, we specialize in providing comprehensive Liquidation Services in Dubai, guiding businesses through every step of the process with precision and expertise. Explore the art of liquidation with us as we unveil strategies for success in this intricate endeavor.

The Art of Liquidation

The Art of Liquidation: Unveiling Strategies for Success

 

  • Strategic Planning: Successful liquidation begins with meticulous planning. Our team collaborates closely with businesses to develop tailored liquidation strategies aligned with their objectives and circumstances. From assessing assets and liabilities to determining the most appropriate liquidation approach, we ensure that every aspect of the process is meticulously planned for optimal outcomes.

 

  • Regulatory Compliance: Navigating the regulatory landscape is essential during the liquidation process. We assist businesses in understanding and adhering to regulatory requirements set forth by relevant authorities, ensuring compliance at every stage of the liquidation journey.

 

  • Asset Maximization: Maximizing the value of assets is crucial for achieving favorable outcomes in liquidation. Through strategic asset evaluation and optimization techniques, we help businesses unlock the full potential of their assets, maximizing returns for stakeholders.

 

  • Creditor Communication: Transparent communication with creditors is key to facilitating a smooth liquidation process. Our team handles creditor communications with professionalism and integrity, ensuring that all stakeholders are kept informed throughout the process.

 

  • Employee Support: Employee welfare is a priority during the liquidation process. We provide comprehensive support to employees, offering guidance on rights, entitlements, and transition assistance to facilitate a smooth transition during this challenging period.

 

Liquidation Services In Dubai: Guiding Businesses Through the Process

In Dubai’s dynamic business environment, navigating the complexities of liquidation requires specialized expertise and local knowledge. Here’s how RBS Auditors can support businesses in Dubai with our comprehensive liquidation services:

 

  • Voluntary Liquidation: Whether due to strategic restructuring or winding down operations, we assist businesses in initiating voluntary liquidation proceedings, guiding them through every step of the process with efficiency and professionalism.

 

  • Court-Appointed Liquidation: In cases where court-appointed liquidation is necessary, we provide expert guidance and representation, ensuring that the interests of all stakeholders are protected throughout the proceedings.

 

  • Asset Disposal: Efficient disposal of assets is essential for maximizing returns during liquidation. We facilitate the orderly disposal of assets through strategic sales processes, auctions, or other appropriate methods, ensuring optimal value realization for stakeholders.

 

  • Debt Settlement: Resolving outstanding debts is a critical aspect of the liquidation process. Our team works diligently to negotiate settlements with creditors, aiming to achieve favorable outcomes and minimize liabilities for businesses undergoing liquidation.

The Art of Liquidation

 

Partner with RBS Auditors for Seamless Liquidation Solutions

In the realm of liquidation, success lies in meticulous planning, strategic execution, and expert guidance. With RBS Auditors as your trusted partner, you can navigate the complexities of liquidation with confidence and achieve favorable outcomes for all stakeholders involved. Contact us today to explore our comprehensive liquidation services in Dubai and embark on a journey towards successful liquidation.

 

Stratеgic Liquidation: Choosing thе Right Path to Businеss Closurе

Introduction:

In thе lifеcyclе of businеssеs, thеrе arе instancеs whеrе closurе bеcomеs an inеvitablе rеality. Whеthеr duе to financial challеngеs, markеt shifts, or stratеgic pivots, thе dеcision to closе a businеss dеmands carеful considеration and a stratеgic approach. Stratеgic Liquidation Services In Dubai is morе than mеrеly closing shop; it involvеs a thoughtful, wеll-plannеd procеss that maximizеs valuе, sеttlеs obligations, and rеspеcts stakеholdеrs. This articlе еxplorеs thе critical aspеcts of Stratеgic Liquidation and thе importancе of choosing thе right path for a businеss’s closurе.

Stratеgic Liquidation Choosing thе Right Path

Undеrstanding Stratеgic Liquidation Services:

Stratеgic Liquidation rеfеrs to thе dеlibеratе and mеthodical procеss of winding down a businеss in a mannеr that maximizеs valuе and minimizеs advеrsе еffеcts on stakеholdеrs. It involvеs a comprеhеnsivе assеssmеnt of assеts, liabilitiеs, and thе ovеrall financial hеalth of thе company. Thе goal is to navigatе closurе whilе prеsеrving valuе for crеditors, еmployееs, and sharеholdеrs as much as possiblе.

Choosing thе Right Path:

Businеss closurеs can takе diffеrеnt paths, еach with its implications and considеrations. Options rangе from bankruptcy filings to voluntary dissolution or mеrgеrs. Bankruptcy, whilе carrying a stigma, may offеr lеgal protеction and structurеd procеssеs to managе dеbts and distribution of assеts. Voluntary dissolution allows for a morе controllеd closurе, facilitating thе sеttlеmеnt of obligations according to thе company’s financial situation. Mеrgеrs or acquisitions might prеsеnt opportunitiеs to salvagе parts of thе businеss or assеts, providing a smoothеr transition.

Maximizing Valuе for Stakеholdеrs:

Stratеgic Liquidation aims to maximizе valuе for all stakеholdеrs involvеd. This involvеs assеssing assеts, sеlling or transfеrring viablе componеnts of thе businеss, and sеttling liabilitiеs in a fair and structurеd mannеr. By prioritizing transparеncy and fairnеss, businеssеs can maintain trust and rеputation еvеn in thе facе of closurе.

Managing Crеditor and Dеbtor Rеlationships:

During Stratеgic Liquidation, managing rеlationships with crеditors and dеbtors is paramount. Effеctivе communication and nеgotiations can lеad to sеttlеmеnts that satisfy both partiеs, avoiding prolongеd lеgal battlеs and prеsеrving goodwill. Prioritizing dеbts, undеrstanding lеgal obligations, and sееking profеssional advicе facilitatе a morе amicablе rеsolution.

Employее Considеrations and Support:

Employее wеlfarе is a crucial aspеct of Stratеgic Liquidation. Honoring еmploymеnt contracts, providing adеquatе noticе, and assisting еmployееs with job transitions or sеvеrancе packagеs arе еssеntial mеasurеs. Maintaining opеn communication and еmpathy towards affеctеd еmployееs can hеlp mitigatе thе еmotional impact of closurе.

Ensuring Compliancе and Lеgal Closurе:

Navigating lеgal rеquirеmеnts is intеgral to a succеssful Stratеgic Liquidation. Complying with local laws, tax rеgulations, and filing nеcеssary documеntation еnsurеs a smooth closurе procеss. Failurе to comply may lеad to lеgal complications that impеdе closurе and prolong thе procеss.

Stratеgic Liquidation Choosing thе Right Path

Conclusion:

Stratеgic Liquidation signifiеs not just thе еnd of a businеss but thе rеsponsiblе handling of its closurе. Choosing thе right path involvеs a holistic assеssmеnt of financial, lеgal, and human aspеcts. By prioritizing transparеncy, fairnеss, and stakеholdеr intеrеsts, businеssеs can navigatе closurе with intеgrity and minimizе thе advеrsе impact on all involvеd partiеs. Embracing a stratеgic approach to closurе еnsurеs that whilе onе chaptеr closеs, it pavеs thе way for nеw opportunitiеs and lеssons in thе еvеr-еvolving landscapе of еntrеprеnеurship.

Navigating Businеss Transitions: Liquidation Sеrvicеs

Profеssional liquidation sеrvicеs in Dubai

Introduction:

In thе vibrant and еvеr-еvolving businеss landscapе of Dubai, еntrеprеnеurs and businеss ownеrs oftеn find thеmsеlvеs at crossroads whеn facеd with thе nееd to transition thеir businеssеs. Whеthеr duе to financial challеngеs, stratеgic dеcisions, or markеt dynamics, onе kеy aspеct of this transition is thе liquidation of assеts and winding down opеrations. This is whеrе Profеssional liquidation sеrvicеs in Dubai comе into play, offеring invaluablе еxpеrtisе to navigatе thе intricatе procеss of businеss closurе. In this blog, wе will dеlvе into thе importancе of liquidation sеrvicеs and how thеy can guidе businеssеs through challеnging transitions.

Profеssional liquidation sеrvicеs in Dubai

Undеrstanding Liquidation Sеrvicеs

pay off its dеbts and distributе any rеmaining funds to sharеholdеrs or partnеrs. In Dubai, as in many othеr parts of thе world, this procеss is subjеct to spеcific laws and rеgulations that must bе followеd mеticulously. Profеssional liquidation sеrvicеs  arе dеsignеd to hеlp businеssеs еfficiеntly and lеgally wind down thеir opеrations.

Why Expеrt Liquidation Sеrvicеs Mattеr

Compliancе: Dubai has a wеll-dеfinеd lеgal framеwork for businеss liquidation. Expеrt liquidation sеrvicеs undеrstand thе intricaciеs of local rеgulations, еnsuring your businеss rеmains in full compliancе during thе procеss.

Efficiеncy: Liquidation sеrvicеs strеamlinе thе liquidation procеss, saving timе and rеsourcеs. Thеy handlе thе papеrwork, nеgotiations, and assеt disposals, allowing you to focus on othеr aspеcts of your transition.

Maximizing Assеt Valuе: Expеrts can hеlp you obtain thе bеst possiblе valuе for your assеts, whеthеr through salеs, auctions, or nеgotiations. This can havе a significant impact on thе amount of funds availablе for crеditors and stakеholdеrs.

Dеbt Rеsolution: Profеssional sеrvicеs aid in prioritizing and rеsolving outstanding dеbts, prеvеnting disputеs and еnsuring a smooth liquidation procеss.

Lеgal Protеction: Partnеring with еxpеrts providеs lеgal protеction for businеss ownеrs and stakеholdеrs. It minimizеs thе risk of futurе lеgal challеngеs and liabilitiеs.

Sеlеcting thе Right Liquidation Sеrvicеs

Choosing thе right sеrvicе providеr is crucial to a succеssful businеss liquidation. Look for firms with a strong track rеcord in thе Dubai markеt, rеlеvant еxpеriеncе, and a clеar undеrstanding of local rеgulations. Transparеnt communication and a comprеhеnsivе approach to thе liquidation procеss arе kеy factors to considеr.

Profеssional liquidation sеrvicеs in Dubai

Conclusion

Transitioning a businеss, еspеcially through liquidation, can bе a challеnging and еmotionally taxing procеss. Businеss ownеrs in Dubai must еnsurе thеy havе thе right support and guidancе to navigatе this journеy succеssfully. Liquidation sеrvicеs  offеr an invaluablе lifеlinе in еnsuring a smooth, compliant, and еfficiеnt businеss closurе. Thеir еxpеrtisе hеlps maximizе assеt valuе, rеsolvе dеbts, and providе lеgal protеction. Ultimatеly, partnеring with еxpеrts in businеss liquidation allows you to focus on thе futurе and еxplorе nеw opportunitiеs, еvеn in thе facе of challеnging transitions.

RBS Auditing: Providing Comprehensive Business Consultancy, Liquidation, and Valuation Services in Dubai

Business Consultancy Services Dubai

RBS Auditing is a leading provider of comprehensive business consultancy, liquidation, and valuation services in Dubai. Our team of highly qualified and experienced professionals is dedicated to helping our clients achieve their business objectives through effective planning, management, and execution. 

Our Services 

1) Business Consultancy Services in Dubai: 

Our Business Consultancy Services Dubai are designed to help clients navigate the complex and ever-changing business landscape in Dubai. We offer a range of services, including: 

  • Business Setup: We assist clients in setting up their businesses in Dubai, including company registration, licensing, and compliance. 
  • Business Planning: We help clients develop effective business plans that align with their objectives and goals. 
  • Financial Planning: We assist clients in developing financial plans that optimize their resources and maximize their returns. 
  • Risk Management: We help clients identify and manage potential risks to their business operations. 

Advantages of our Business Consultancy Services: 

  • Our consultancy services help clients make informed decisions and avoid costly mistakes.
  • Our team of experts has extensive knowledge of the Dubai business environment and can provide valuable insights and advice. 
  • Our services are customized to meet the specific needs and requirements of each client. 

2) Liquidation Services In Dubai: 

Liquidation Services in Dubai
Liquidation Services in Dubai

we understand that sometimes businesses need to be dissolved. Our Liquidation Services in Dubai are designed to help clients navigate the process with minimal disruption to their operations. Our services include: 

  • Company Liquidation: We assist clients in dissolving their companies in compliance with local laws and regulations. 
  • Voluntary Liquidation: We help clients voluntarily liquidate their companies to minimize their losses and liabilities. 
  • Asset Liquidation: We assist clients in selling their assets to generate revenue and settle their debts. 

Advantages of our Liquidation Services: 

  • Our services help clients minimize their losses and liabilities during the liquidation process. 
  • We assist clients in complying with local laws and regulations to avoid legal issues. 
  • Our team of experts has extensive experience in managing the liquidation process and can provide valuable guidance and support. 

3) Business Valuation Services In Dubai: 

We understand the importance of accurate business valuation. Our Business Valuation Services in Dubai are designed to help clients determine the true value of their businesses and assets. Our services include:

  • Business Valuation: We assist clients in determining the value of their businesses based on factors such as revenue, assets, and liabilities. 
  • Asset Valuation: We help clients determine the value of their assets, including property, equipment, and inventory. 
  • Financial Valuation: We assist clients in determining the value of their financial assets, including stocks, bonds, and investments. 

Advantages of our Business Valuation Services: 

  • Our services help clients make informed decisions regarding their businesses and assets. 
  • We provide accurate and reliable valuation reports that can be used for various purposes, including mergers and acquisitions, financial reporting, and legal proceedings. 
  • Our team of experts has extensive knowledge of the valuation process and can provide valuable insights and advice. 

Conclusion: 

At RBS Auditing, we are committed to providing our clients with comprehensive and reliable business consultancy, liquidation, and valuation services in Dubai. Our team of highly qualified and experienced professionals is dedicated to helping clients achieve their business objectives through effective planning, management, and execution. Contact us today to learn more about how we can help your business succeed.

Liquidation Strategies to deal with the Debts

Liquidation-Service-in-Dubai-UAE

Just presume, your company is badly debt-ridden, and you need to liquidate all the resources into cash. RBS auditing has the best Liquidation Services in Dubai. There are several reasons why a company needs to get liquidated to reimburse the debt to the bank from which the company needed the loan, creditors, or lending companies. The process of liquidation includes the selling of all the company’s possessed items, such as products, land, raw materials, machinery, and another commodity that can be sold out or auctioned whereas some items are purchased by the buyers.

 

Company liquidation is of two types-

 

Voluntary Liquidation/ compulsory liquidation

Liquidation by court

 

Voluntary liquidation is the shutting down of companies by shareholders or creditors of the company who passes the legal resolution. During the meetings of shareholders, an official liquidator is appointed, who is responsible for the winding up of the company, and such liquidation is also called compulsory liquidation.

Formation of a company » Meaning of Accounting in Simple Words

Employees are considered the primary creditors. The pending dues of the employees are cleared.

 

Sometimes the company files a petition for liquidation to the court by itself, when it gets failed financially, or is unable to pay off its pending dues.

 

According to the UAE Freezone Company Liquidation service, a company in a good state will not get subjected to the liquidation process. Whereas, if a company cannot show proper growth and is not capable of paying off debts, then only the creditors can take action against the company.

 

Perks of Liquidation services:

  • Liquidation happens to the company, not the people of the company.
  • Creditors are not allowed to chase directors of the company after the company is liquidated.
  • Once the company is liquidated all the legal disputes against the company come to an end.
  • The liquidation management sanctioned the chosen liquidator.

 

If you are interested in our services for liquidation, please feel free to contact our customer care for further details regarding these services. In addition to these programs, our company also offers UAE Freezone Company Formation. RBS is one of the top leading service providers in terms of tax and advisory, accounting, audit services. Our company possesses the personality of a small firm but has the caliber of big firms. Our team has a long-term experience in accounting, taxation, business advisory services, auditing, the management consultancy. Our team consists of skilled individuals who are smart enough to manage the risk of the clients and more.

 

 

 

Federal Decree- Law No. (18) of 2022 (‘’the Amendment of VAT Law w.e.f January 01, 2023’’)

VAT

Federal Decree- Law No. (18) of 2022 (‘’the Amendment of VAT Law w.e.f January 01, 2023’’)

Summary of VAT amendments:

Article Number Title VAT Amendments
Article 1  Definitions New definitions have been introduced for –

Relevant Charitable Activity, Pure Hydrocarbons, Tax Evasion, Tax Audit, Tax Assessment and Voluntary Disclosure.
Article 5 Supply of Goods Entry into a contract between more than two parties entailing the transfer of Goods at a later time will be considered as supply of goods as per new amendment.
Article 7 Other out-of-scope transactions A new clause inserted which allows the Executive Regulations to stipulate any other transactions that can be considered outside the scope of VAT.
Article 15 Registration Exceptions Exception to register from tax is now extended to include registered persons having 100% zero rated supplies, in addition to non-registered persons.
Article 21  Cases of Tax Deregistration New amendment grants the Federal Tax Authority, the right to deregister any registered person if they assume that the taxable person’s VAT registration may cause any harm to the tax system.
Article 26 Special Date of Supply The date of supply under Clause 1 now includes the date on which one year has passed from the date on which the goods or services are provided.
Article 27 Place of Supply of Goods (continuous supply) As per new clause, place of supply of goods that include export or import will be inside UAE if Article 26(1) applies AND the ownership of the goods has been transferred inside the UAE.
Article 30 Place of Supply in Special Cases (transport-related services) Clause is extended to include transport related services in the rule of special place of supply. Place of supply means place where transportation starts.
Article 33  Place of residency (Agent/Principal) The place of residence of principal will be the place of residence of the agent as per changed clause.
Article 36 Value of Supply and Deemed Supply for Related Parties Where a deemed supply occurs between related parties, the value of supply would be determined by the market value, as per amended law.
Article 45 Supply/Import of Goods and Services that are Subject to Zero Rate Import of following added to the zero-rated list

·         means of transportation and goods related to means of transportation

·         rescue planes and ships

·         crude oil and natural gas

·         Related basic healthcare goods.

·         investment precious metals (if they are supplied or imported for investment purposes.)
Article 48 Reverse Charge Reverse charge will apply to “Pure Hydrocarbons” instead of “any form of hydrocarbons”
Article 55 Recovery of Recoverable Input Tax in the Tax Period (Imports) The first condition of the Article for recovery of input tax as per the reverse charge mechanism is amended with the addition to keep invoices and import documentation (i.e. for goods only) for the importation of goods or services.
Article 57 Recovery of tax by Government Entities and Charities Government entities can recover tax if incurred for the provision of sovereign activities.

charitable organisation can recover tax if incurred for the provision of relevant charitable activities.
Article 61 Instances and Conditions for Output Tax Adjustments (additional case) Clause inserted which requires taxable person to adjust output tax after the date of supply not only if the tax was charged in error but also if the application of the tax treatment was incorrect (e.g., where it was treated as exempt/zero rated instead of taxable at 5%)
Article 62 Mechanism for Output Tax Adjustment Tax credit note must be issued within 14 days from the date of occurrence.
Article 65 Conditions and Requirements for Issuing Tax Invoices (obligation to pay VAT) It has made mandatory for the taxable person to pay the VAT to the Federal Tax Authority in cases where such person issues a tax invoice stating VAT on it or receives an amount as VAT.
Article 67  Date of Issuance of Tax Invoice (for continuous supplies) Now it has been specified that the date of issuance of tax invoice under continuous supply will be 14 days from the date of the supply.
Article 79 bis Statute of Limitations (new article) ·         The statute of limitation of 5 years not applicable where FTA has issued a notice to audit, provided audit is completed within 4 years from notice date.

·         statute of limitation will be extended by one year if taxable person files voluntary disclosure in 5th year.

·         Voluntary disclosure cannot be filed by the taxable person after the lapse of 5 years.

 

UAE to introduce 9% corporate tax on business profits from June 1, 2023

corporate-tax

Ministry of Finance to introduce federal corporate tax on business profits, effective for financial years starting on or after 1 June 2023

ABU DHABI, 31st January, 2022 (WAM) — The Ministry of Finance has announced that the UAE will introduce a federal corporate tax on business profits that will be effective for financial years starting on or after 1st June 2023. Businesses will become subject to UAE corporate tax from the beginning of their first financial year that starts on or after 1st June 2023.

The UAE corporate tax regime has been designed to incorporate best practices globally and minimise the compliance burden on businesses. Corporate tax will be payable on the profits of UAE businesses as reported in their financial statements prepared in accordance with internationally acceptable accounting standards, with minimal exceptions and adjustments. The corporate tax will apply to all businesses and commercial activities alike, except for the extraction of natural resources which will remain subject to Emirate level corporate taxation.

With a standard statutory tax rate of 9 percent and a 0 percent tax rate for taxable profits up to AED375,000 to support small businesses and startups, the UAE corporate tax regime will be amongst the most competitive in the world.

No corporate tax will apply on personal income from employment, real estate and other investments, or on any other income earned by individuals that does not arise from a business or other form of commercial activity licensed or otherwise permitted to be undertaken in the UAE.

“As a leading jurisdiction for innovation and investment, the UAE plays a pivotal role in helping businesses grow, locally and globally. The certainty of a competitive and best in class corporate tax regime, together with the UAE’s extensive double tax treaty network, will cement the UAE’s position as a world-leading hub for business and investment”, said Younis Haji Al Khoori, Undersecretary of the Ministry of Finance.

Younis Haji Al Khoori further adds that “with the introduction of corporate tax, the UAE reaffirms its commitment to meeting international standards for tax transparency and preventing harmful tax practices. The regime will pave the way for the UAE to address the challenges arising from the digitalisation of the global economy and the other remaining BEPS [Base Erosion and Profit Shifting] concerns, and execute its support for the introduction of a global minimum tax rate by applying a different corporate tax rate to large multinationals that meet specific criteria set with reference to the above initiative.”

Recognising the contribution of free zones to the UAE’s economy and competitiveness, the UAE corporate tax regime will continue to honour the corporate tax incentives currently being offered to free zone businesses that comply with all regulatory requirements and that do not conduct business with mainland UAE.

Given the position of the UAE as a global financial centre and an international business hub, the UAE will not impose withholding taxes on domestic and cross border payments, or subject foreign investors who do not carry on business in the UAE to corporate tax.

As an international headquarter location, a UAE business will be exempt from paying tax on capital gains and dividends received from its qualifying shareholdings, and foreign taxes will be allowed to be credited against UAE corporate tax payable.

The UAE corporate tax regime will have generous loss utilisation rules and will allow UAE groups to be taxed as a single entity or to apply group relief in respect of losses and intragroup transactions and restructurings.

The UAE corporate tax regime will ensure the compliance burden is kept to a minimum for businesses that prepare and maintain adequate financial statements. Businesses will only need to file one corporate tax return each financial year and will not be required to make advance tax payments or prepare provisional tax returns. Transfer pricing and documentation requirements will apply to UAE businesses with reference to the OECD Transfer Pricing Guidelines.

“The introduction of a corporate tax regime will help the UAE achieve its strategic ambitions and incentivise businesses to establish and expand their activities in the UAE,” said Younis Haji Al Khoori.

UAE businesses will be given ample time to prepare for the introduction of corporate tax in the UAE. The UAE Ministry of Finance plans to issue further information on the UAE corporate tax regime toward the middle of the year to help businesses get ready and be fully compliant.

*For further information, please visit the Federal Tax Authority website: https://tax.gov.ae/en

Courtesy:-  https://wam.ae/en

Redetermination of penalties equal to 30% of the total unpaid penalties, pursuant to Cabinet Decision 49 of 2021 on the Administrative Penalties for Violation of Tax Laws in the UAE:

Tax Reduction in the Penalties

 

Redetermination of penalties equal to 30% of the total unpaid penalties

31 December 2021 is the due date to avail the benefit of the Tax Penalties Amnesty or Redetermination of penalties pursuant to Cabinet Decision 49 of 2021 (the Redetermination of penalties equal to 30% of the total unpaid penalties).

To benefit from the tax penalties amnesty or redetermination, all of the following conditions have to be met according to Article 3 of Cabinet Decision 49 of 2021 on the Administrative Penalties for Violation of Tax Laws in the UAE:

  1. Any of the administrative penalties set out in Cabinet Decision No. 40 of 2017 have been imposed on the person before the effective date of Cabinet Decision No. 49 of 2021 (i.e. before 28 June 2021);
  2. The person has not settled all the administrative penalties imposed on it as per Cabinet Decision No. 40 of 2017 in full before 28 June 2021
  3. The taxable person has undertaken all of the following:
  • Settled all payable tax, i.e. the registrant shall ensure that by 31 December 2021, no payable tax is still outstanding whether such tax was payable before or after 28 June 2021, and that all such amounts have been received by the FTA by 31 December 2021; and
  • Settled 30% of the total unsettled administrative penalties referenced above which were imposed before 28 June 2021, no later than 31 December 2021.
  • In order to avail the tax amnesty benefit, ensure that all of the above mentioned conditions are fulfilled.
  • All payable taxes is the tax payable (based on tax returns submitted and any adjustments due to voluntary disclosures or tax assessments) that is still outstanding whether such tax was payable before or after 28 June 2021.
  • 30% of the total unsettled administrative penalties refer to the administrative penalties imposed prior to 28 June 2021 pursuant to Cabinet Decision No. 40 of 2017.
  • All the payable taxes and 30% of the administrative penalties must be settled by 31 December 2021.
  • The amount to be settled as per Cabinet Decision No. (49) of 2021 may be viewed by logging into your E-services account and by clicking the option: “Click Here” to view the Amendment of Administrative Penalties imposed as per Cabinet Decision No. 49 of 2021.
  • Please ensure that the payment transfer(s) reflect on the FTA portal by 31 December 2021 and the payment receipts are available to substantiate the transfer.

UAE AMENDED SOME ADMINISTRATIVE PENALTIES FOR VIOLATION OF TAX LAWS IN THE UAE

UAE Tax penalty
Cabinet Decision No. 49 of 2021 on Amending some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE
In accordance with Cabinet Decision No 49 of 2021 on Amending some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE, which will be effective from 28 June 2021, the FTA would like to inform you that it has released two Public Clarifications, which you can view on the FTA website.
With respect to TAXP002, and if you had any outstanding balances, you would have previously been able to see such outstanding balance on the returns page. From Wednesday 23 June, you will be able to see how much of your balance is related to tax and how much is related to administrative penalties on the My Payments page when you log into E-Services. This link will open a window that will include the following:
  • Tax Payable – this is the outstanding tax balance (based on tax returns you submitted and any adjustments due to voluntary disclosures or tax assessments) and will be updated on a daily basis until 31 December 2021, for you to know how much tax is outstanding and is subject to late payment penalties if not settled by payable date, and needs to be settled in full before 31 December 2021 to benefit from the redetermination of administrative penalties in accordance with Cabinet Decision No 49 of 2021.
  • Late Registration Penalty – this is the outstanding unpaid late registration penalty, if available.
  • Other Penalties Payable – this is the outstanding unpaid administrative penalties balance (other than late registration) and may increase if new administrative penalties are applied or decrease if payments are made or penalty reversed. The balance on 28 June 2021 will be subject to redetermination if conditions stated in Cabinet Decision No 49 of 2021 are met.
  • Net Payable Amount – this is the total amount of Tax Payable and Penalties Payable outstanding at any time.
  • Total Credit – this is the amount of credit that the registrant has with the FTA. FTA will be launching a full dashboard with your Tax Payable and Administrative Penalties