The UAE has reduced the penalties on VAT and excise tax to assist businesses and individuals to get over the impact of the Covid-19 pandemic. According to newly-released Cabinet Decision No. 49 of 2021, taxpayers who currently have penalties pending can see those reduced to 30 percent, provided they settle them before New Year's Eve, 2021.
Also, late payment penalties will be reduced to 4 percent per month, a substantial reduction from 1% per day while an overall cap stays at 300 percent.
The new provisions will be applicable for 60 days as of April 28, 2021.
With the reduction in penalties of VAT and excise tax, it's an incredible opportunity for people and corporations to start out fresh. This is the most effective relief provided by the UAE government to the pandemic-hit businesses within the UAE.
Several businesses in the UAE succumbed to administrative penalties on account of delays in the submission of the due tax. The administrative penalties are at par with global standards. The most relieving change is a maximum penalty of 4% percent of unpaid tax per month compared to at least one percent of the unpaid tax for every day of delay as per the old provisions.
https://parshaccountingandbookkeeping.blogspot.com/2021/06/new-update-in-covid-19-pandemic-uae.html
