UAE
UAE imposes reduction on VAT, excise tax penalties
The UAE has reduced tax penalties for value-added tax (VAT) and Excise Tax in order to help the companies and individuals better cope with the impact of the Covid-19 pandemic.
According to the newly-released Cabinet Decision No. 49 of 2021, taxpayers who currently have penalties pending can see those reduced to 30%, provided they settle them before December 31, 2021.
Going forward, late payment penalties will be reduced to four percent per month, a substantial reduction from one percent per day while an overall cap stays at 300 percent.
The new provisions will be applicable 60 days as from April 28, 2021.
