16/05/2026
Most businesses in the UAE don’t realise they’re already exposed.
Cabinet Decision No. 129 of 2025 came into effect on 14 April 2026, and it brought with it a refreshed penalty framework under the Tax Procedures Law. The numbers are significant, and the triggers are more common than you’d think.
Here’s what businesses are being penalised for right now:
- Not maintaining required records and documents: AED 10,000 for a first - violation, doubling to AED 20,000 if it happens again within 24 months. And yes, this applies even if all your tax returns were filed correctly.
- Failing to update tax records with the FTA: AED 1,000 per violation, rising to AED 5,000 on repeat. This includes changes to your trade licence or business activities, something many companies overlook entirely.
- Late deregistration applications: AED 1,000 per month, capped at AED 10,000. This applies across VAT, Excise Tax, and Corporate Tax.
The pattern we see consistently is that businesses focus on filing returns and assume that’s enough. It isn’t. Recordkeeping, timely updates, and proper deregistration are equally part of your compliance obligations, and the FTA is paying attention.
If you’re not sure where your business stands under the new regime, that’s exactly what our free 30-minute compliance review is for. No commitment, just clarity.
Get in touch with our team today.
📞 +971 4 22 877 74
📧 [email protected]
🌐 www.aaa-cas.com
