1- Requirement to Update Records:

Registrants must inform the FTA within 20 business days of any changes to their tax records, such as:

• Name, address, and email changes.
• Trade license updates.
• Business activities, legal structure, and associated agreements.
• Operational address or nature of business.

2- Penalties for Non-Compliance:

Failure to notify the FTA within the specified timeline results in:

• AED 5,000 for the first offense.
• AED 10,000 for repeated offenses (under Cabinet Decision No. 40 of 2017).

3- Grace Period Introduction:

To encourage compliance, a grace period has been announced:

• Starts: January 1, 2024
• Ends: March 31, 2025
• During this time, registrants can update their tax records without administrative penalties.

4- Reversal of Past Penalties:

Penalties imposed between January 1, 2024, and the system’s implementation of the grace period will be reversed. Reversed amounts will be added back to registrants’ tax accounts.

5- Automatic Adjustment:

Registrants do not need to request penalty reversals; the process will be automated by the FTA.