Update The Information In The Tax Records Before The Grace Period Ends

Ensuring compliance with the regulations of the FTA is a must in order to avoid any penalties and legal proceedings. Keeping the deadlines and filing the returns along with making the required changes in the tax-related details must also be kept in mind in order to avoid any further actions from the FTA. FTA has provided a grace period starting from 1st January 2024 to 31st March 2025 in order to make the updates in the information included in the tax records and avoid the administrative penalties for the changes made during this period.

Usually, if there is any change in the information related to the tax records submitted to the FTA, it needs to be informed to the authorities within 20 business days from the day of any such changes. If the entities fail to do so, then it would result in penalties and further violations of the regulations. As a part of protecting and encouraging the entities to make the timely updates, the FTA had initiated the grace period, which is to end by 31st March 2025.

What All Amendments Are to be Informed?

The entities holding the TRN must communicate and inform the FTA regarding any amendments or any updates of the information, which might include the following:

• Changes in the name, address, and email address
• Changes in the trade license activities
• Change in the type of the legal entity or the partnership structure or agreement for the unincorporated partnership and any changes in the articles of association, etc.
• Change in the nature and type of the business of the registered entity
• Change in the address of the business from which the registrant operates, etc.

The following changes are to be informed to the FTA without fail, or else it would result in penalties and fines.

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Grace period

The FTA has initiated the grace period with the objective of motivating the entities to make the changes in the information, as it could provide them more time and space to make the required updates.

If the changes are made during the grace period, which started from 1st January 2024 to 31st March 2025, then there would be no penalties imposed on it.

Similarly, if there is any administrative penalty that has been charged by the FTA during the grace period as stated, then the penalty would be reversed.

If any of the entities have filed the penalties to the FTA during the grace period, then the amount shall be reversed back to the respective tax registrant’s account. This process will be initiated by the FTA automatically, as it would not require the registrants to contact the FTA.

Examples of The Changes to Informed in Relation To The Grace Period 

The following are certain examples that are to be informed to the FTA within the grace period to avoid any penalties and other litigation processes:

• Timelines related to the setting up of the new branch and the uploading of the trade license related to the same and failure to inform the FTA thereof
• Timeline related to the movement of the business to a new address and failure to inform the FTA thereof
• Updating of the records within the stipulated duration by the VAT or excise-registered entities before applying for the corporate tax registration failure to inform the FTA thereof
• Registration under the UAE corporate tax regime based on incorrect details and not making the corrections within the given timelines
• The following are changes that can be made during the grace period provided by the FTA.

Steps to Make the Changes

In order to make the relevant changes in the information with the FTA, then the following process can be followed by the entities:

1. Use the EmaraTax portal and log in to the tax account.
2. Check for any existing records to verify the details.
3. Submit the required documents, which are updated.
4. Submit the amendment application after uploading all the required documents.
5. Comply with the FTA guidelines to avoid further disruption in the processes.

CDA: Your go-to Destination for Tax Assistance

Compliance with the deadlines and the regulations of the FTA is mandatory in order to avoid any circumstances of the fines or penalties. Businesses engaged in cutthroat competition might fail to keep the deadlines and would end up paying huge fines. To avoid such situations, our team of tax experts is ready to provide all the required tax assistance to the business entities. By avoiding penalties and keeping the deadlines, we assure you that our professional team would enable you to stay compliant with the tax regulations.

To get more information on our tax services, connect to our experts now.

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