Cabinet Decision No. 129 of 2025 came into effect from 14 April 2026, implementing substantial reductions in a number of administrative penalties, as well as changes to the calculation mechanisms for certain penalties.
The FTA confirmed “the Decision is intended to support taxable persons, ease the burden on them, and assist them in meeting their obligations and regularising their positions where any tax errors or violations exist, in a manner that enhances the UAE’s competitiveness in terms of ease of doing business.” The FTA further notes that these amendments should encourage voluntary compliance.
Key Points
The decision implements material reductions of administrative penalties for violations of tax laws, notably:
What’s Next?
Taxpayers are encouraged to review their compliance status and where errors exist, look to rectify errors including the possibility of prompt voluntary disclosures (where relevant).
