On 28 April 2021, the United Arab Emirates (UAE) Cabinet of Ministers issued Resolution No. 49/2021, which amends Cabinet Resolution No. 40/2017 in relation to administrative penalties for the violation of tax laws in the UAE.  Cabinet Resolution No. 49/2021 enters into force 60 days following its issuance, i.e., on 27 June 2021. The key tax changes of the amendment are following:

1The failure of the Person conducting Business to keep the required records and other information specified in the Tax Procedures Law and the Tax Law.10,000 for the first time.
20,000 in case of repetition.
2The 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
3The failure of the Taxable Person to submit a registration application within the timeframe specified in the Tax Law.10,000
4The failure of the Registrant to submit a deregistration application within the timeframe specified in the Tax Law.1,000 in case of delay, and on the same date monthly thereafter, up to a maximum of 10,000.
5The failure of the Registrant to inform the Authority of any circumstance that requires the amendment of the information pertaining to its Tax record kept by Authority.5,000 for the first time.
10,000 in case of repetition.
6The failure of the Legal Representative of the Taxable Person to inform the Authority of its appointment as Legal Representative within the specified timeframe, in which case the Penalties will be due from the Legal Representative’s own funds.10,000
7The failure of the Legal Representative for the Taxable Person to file a Tax Return within the specified timeframe, in which case the Penalties will be due from the Legal Representative’s own funds.1,000 for the first time.
2,000 in case of repetition within 24 months.
8The failure of the Registrant to submit the Tax Return within the timeframe specified in the Tax Law.1,000 for the first time.
2,000 in case of repetition within 24 months.
9The failure of the Taxable Person to settle the Payable Tax stated in the submitted Tax Return or Voluntary Disclosure, or the Tax Assessment he was notified of, within the timeframe specified in the Tax Law.1. The Taxable Person shall be obliged to pay the penalty applicable to late payment of Payable Tax up to a maximum of 300%, pursuant to the following:
a. 2% of the unpaid Tax shall be due on the day following the due date of payment, where the settlement of Payable Tax is late.
b. 4% monthly penalty is due after one month from the due date of payment, and on the same date monthly  thereafter,  on  the unsettled Tax amount to date.
2. For the purposes of this penalty, the due date of payment in the case of the Voluntary Disclosure and Tax Assessment, shall be as follows:
a. 20 business days from the date of submission, in the case of a Voluntary Disclosure.
b. 20 business days from the date of receipt, in the case of a Tax Assessment.
10The submittal of an incorrect Tax Return by the Registrant.1.  Fixed penalty shall be applied:
1,000 for the first time.
2,000 in case of repetition.
2. As an exception to Clause 1 of this penalty, if the incorrect Tax Return results in a Tax difference less than the fixed penalty listed in Clause 1 of this penalty, a penalty equal to the that Tax difference of at least 500 shall be imposed.
3.  Anyone correcting their Tax Return prior to the due date of payment shall be excluded from the penalty imposed under Clauses 1 and 2 of this penalty.
11The submittal of a Voluntary Disclosure by the Person/Taxpayer on errors in the Tax Return, Tax Assessment or refund application pursuant to Article 10(1) and 10(2) of the Tax Procedures Law.Without prejudice to the potential consequences of the penalty mentioned in Clause 10 of this Table, a percentage- based penalty shall be applied on the difference between the Tax that was calculated and that which should have been calculated, pursuant to the following:
1. 5% on the difference, where the Voluntary Disclosure is submitted within one year from the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application;
2.  10%  on  the  difference,  where  the Voluntary Disclosure is submitted within the second year following the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application;
3.  20%  on  the  difference,  where  the Voluntary Disclosure is submitted within the third year following the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application;
4.  30%  on  the  difference,  where  the Voluntary    Disclosure is submitted within the fourth year from the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application;
5. 40% on the difference, where the Voluntary Disclosure is submitted after the fourth year from the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application.
12The failure of the Person/Taxpayer to voluntarily disclose an error in the Tax Return, Tax Assessment, or refund application pursuant to Article 10 (1) and 10(2) of the Tax Procedures Law before being notified by the Authority that it will be subject to a Tax Audit.Without prejudice to the potential consequences of the penalty mentioned in Clause 10 of this Table, the person will be subject to:
1.  A penalty of 50% on  the amount of error.
2.  A penalty of 4% for every month or part of the month, of the following:
a. The  unpaid  Tax  to  the  Authority, from the date the payment is due for the relevant Tax Period until the date of receipt of the Tax Assessment.
b. The Tax that was not returned to the Authority due to ineligible refund, from the date of Tax refund until the date of receipt of the Tax Assessment.
13The 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
14The failure of the Registrant to calculate Tax on behalf of another Person  where  the  Registrant Taxable Person is obliged to do so under the Tax Law.1.  The Registrant shall be obliged to pay the penalty     applicable to late settlement of Payable Tax up to a maximum of 300%, pursuant to the following:
a. 2% of the unpaid Tax is due on the day following the due date of payment, where the settlement of Payable Tax is late.
b. 4% monthly penalty is due after one month from   the   due   date   of payment, and on the same date monthly thereafter, on the unsettled Tax amount to date.
2.  For the purposes of this penalty, the due date of payment in the case of Voluntary Disclosure and Tax Assessment, shall be as follows:
a. 20 business days from the date of submission, in the case of a Voluntary Disclosure.
b. 20 business days from the date of receipt, in case of a Tax Assessment.
15A Person not accounting for any Tax that may be due on the import of goods as per the Tax Law.50% of unpaid or undeclared Tax.