|
No.
|
Violation Description
|
Penalty AED
|
Frequency
|
|
1
|
Failure of the person conducting business to
keep the required records and other information specified in Tax Procedures
Law and the Tax Law
|
10,000
50,000
|
for the first time.
in case of repetition.
|
|
2
|
Failure of the person conducting business to
submit the data, records, and documents related to Tax in Arabic to the
Authority when requested.
|
20,000
|
|
|
3
|
Failure of the Taxable Person to submit a
registration application within the timeframe specified in the Tax Law
|
20,000
|
|
|
4
|
Failure of the Registrant
to submit a deregistration application within the timeframe specified in the
Tax Law
|
10,000
|
|
|
5
|
Failure of the Registrant to inform the
Authority of any circumstance that requires the amendment of the information pertaining to his tax record kept by Authority.
|
5,000
150,000
|
for the first time.
in case of repetition.
|
|
6
|
Failure of the person appointed as a Legal A representative for the Taxable Person to inform the Authority of his appointment within the specified timeframe. The penalties will be due to the
Legal Representative's own funds.
|
20,000
|
|
|
7
|
Failure of the person appointed as a Legal
Representative for the Taxable Person to file a Tax Return within the specified timeframe. The penalties will be due to the Legal Representative's own funds.
|
1,000
2,000
|
for the first time.
in case of repetition.
|
|
8
|
Failure of the Registrant to submit the Tax
Return within the timeframe specified in the Tax Law.
|
1,000
2,000
2%
4%
1%
|
for the first time.
in case of repetition.
·
(2%) of the unpaid tax is due immediately once the
payment of Payable Tax is late;
·
4% is
due on the seventh day following the deadline for payment.
·
(1%)
daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with the upper ceiling of (300%).
|
|
9
|
Failure of the Taxable Person to settle the
Payable Tax stated in the submitted Tax Return or Tax Assessment he was
notified of, within the timeframe specified in the Tax Law. The Taxable
Person shall be obligated to pay a late payment penalty consisting of
|
3,000
5,000
|
for the first time.
in case of repetition.
|
|
10
|
Submission of an incorrect Tax Return by the
Registrant. Two penalties are applied:
|
Fixed Penalty
of:
·
3,000
·
5,000
Percentage-Based
Penalty (on the amount unpaid to the Authority):
50%
30%
5%
|
for the first time.
in case of repetition
*(50%) if the Registrant does not make a voluntary
disclosure or he made the voluntary disclosure after being notified of the
tax audit and the Authority has started the tax audit process, or after
being asked for information relating to the tax audit, whichever takes place
first.
*(30) if the Registrant makes a voluntary disclosure
after being notified of the tax audit and before the Authority starts the tax
audit.
*(5%) if the Registrant makes a voluntary disclosure
before being notified of the tax audit by the Authority.
|
|
11
|
The Voluntary Disclosure by the Person/Taxpayer of
errors in the Tax Return, Tax Assessment or Refund Application pursuant to
Article 10 (1) and (2) of the Tax Procedures of Law.
|
Two Penalties:
Fixed
Penalty:
·
3,000
·
5,000
Percentage-based
penalty (on the amount unpaid to the Authority):
50%
30%
5%
|
For the first time
In case of repetition.
(50%) if the Person/Taxpayer makes a voluntary
disclosure after being notified of the tax audit and the Authority starting
the tax auditor after being asked for information relating to the tax audit,
whichever takes place first.
(30%) if the
Person/Taxpayer makes the voluntary disclosure after being notified of the
tax audit but before the start of the tax audit.
(5%) if the Person/Taxpayer makes a voluntary
disclosure before being notified of the tax audit by the Authority.
|
|
12
|
Failure of the Taxable Person to voluntarily
disclose errors in the Tax Return, Tax Assessment, or Refund Application
before the Tax Audit.
|
Two Penalties:
Fixed Penalty:
·
3,000
·
5,000
Percentage-based
Penalty:
50%
|
For the first time
In case of repetition.
50% of the amount unpaid to the Authority due to the
error
|
|
13
|
Failure of the person conducting business to
facilitate the work of the Tax Auditor in violation of the provisions of
Article (21) of the Tax Procedures Law.
|
20,000
|
|
|
14
|
Failure of the Registrant to calculate tax on behalf
of another Person when the registered Taxable Person is obligated to do so
under the Tax Law.
|
The Registrant shall incur a late payment penalty as
follows:
2%
4%
1%
|
2% of the unpaid tax is due immediately once the
payment is late.
4% of the amount of tax which is still unpaid is due
on the seventh day following the deadline for payment.
1% daily penalty will be charged on any amount that
is still unpaid one calendar month after the deadline for payment, up to a
maximum of 300%.
|
|
15
|
Failure to account for tax due on import of goods as
required under the tax law
|
50%
|
50% of unpaid or undeclared tax.
|
|
16
|
Failure by the Taxable Person to display
prices inclusive of tax.
|
15,000
|
|
|
17
|
Failure to comply with the conditions and procedures
related to transferring the Excise Goods from a Designated Zone to another
Designated Zone, and the mechanism of processing and storing of such Excise
Goods.
|
50,000 or 50%
|
The penalty will be the higher of AED 50,000 or 50%
of the tax if any, unpaid on the goods as the result of the violation.
|
|
18
|
Failure by the Taxable Person to provide the
Authority with price lists for the Excise Goods produced, imported or sold
thereby.
|
50,000
20,000
|
For the first time
In case of repetition
|
|
19
|
Failure by the Taxable Person to notify the
Authority of applying tax based on the margin.
|
2,500
|
|
|
20
|
Failure by the Taxable Person to issue the Tax
invoice or an alternative document when making any supply.
|
5,000
|
Or each tax invoice or alternative document.
|
|
21
|
Failure by the Taxable Person to
issue a Tax Credit Note or an alternative document.
|
5,000
|
For each tax credit note or alternative document.
|
|
22
|
Failure by the Taxable Person to comply with the
conditions and procedures regarding the issuance of electronic Tax Invoices
and electronic Tax Credit Notes
|
5,000
|
for each incorrect document.
|
