July 2023
The UAE Ministry of Finance has announced significant changes to tax procedures and penalties. The Cabinet Decision No. (74) of 2023 replaces the existing Executive Regulation on Tax Procedures to align with the New Tax Procedures Law.
The changes include the introduction of Corporate Tax in the UAE, which became effective on June 1, 2023. The decision outlines requirements for accounting records, tax agent registration, and procedures for tax payment and refunds.
Additionally, the Cabinet Decision covers conditions for Qualifying Investment Funds to be exempt from Corporate Tax, aiming to maintain the integrity of the Corporate Tax system and enhance the UAE’s competitiveness as an investment hub.
The Ministry also announced penalties for violations related to the Corporate Tax Law, effective from August 1, 2023. Penalties will be imposed on taxable persons who fail to comply with their obligations under the law.
The new measures aim to ensure tax compliance and support sustainable economic growth in the UAE.”
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