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May 15, 2026

This Decision establishes the legal framework for Administrative Penalties imposed by the Federal Tax Authority for violations of the Tax Procedures Law, Excise Tax Law, and Value Added Tax Law. Article 1 defines critical terms including Taxable Person, Legal Representative, and Voluntary Disclosure. Tables 1, 2, and 3 detail specific financial penalties for non-compliance, such as failure to keep records, late Tax Registration, and incorrect Tax Returns. The text incorporates significant amendments via Cabinet Decision No. 49 of 2021 and Cabinet Decision No. 129 of 2025, specifically revising penalties for late payment and Voluntary Disclosures effective from April 2026.

This is not an Official Translation:

The Administrative Penalties for Violation of Tax Laws in the UAE

Cabinet Decision No. 40 of 2017 - Issued 24 Sep 2017 - (Effective from 24 Sep 2017)

Cabinet Decision No. 49 of 2021 - Issued 28 Apr 2021 - (Effective from 28 Jun 2021)

Cabinet Decision No. 108 of 2021 - Issued 30 Dec 2021 - (Effective from 1 Jan 2022)

Cabinet Decision No. 129 of 2025 - Issued 9 Oct 2025 - (Effective from 14 April 2026)

The Cabinet has decided:

Having reviewed the Constitution,
Federal Law No. 1 of 1972 on the Competences of the Ministries and Powers of the Ministers, and its amendments,
Federal Law No. 1 of 2011 on the State's Public Revenues,
Federal Decree-Law No. 8 of 2011 on the Rules of the Preparation of the General Budget and Final Accounts,
Federal Law No. 14 of 2016 on Violations and Administrative Penalties in the Federal Government,
Federal Decree-Law No. 13 of 2016 on the Establishment of the Federal Tax Authority, and its amendments,
Federal Decree-Law No. 28 of 2022 on Tax Procedures and its amendments,
Federal Decree-Law No. 7 of 2017 on Excise Tax and its amendments,
Federal Decree-Law No. 8 of 2017 on Value Added Tax and its amendments,
Federal Decree-Law No. 26 of 2019 on Public Finance,
Pursuant to what was presented by the Minister of Finance and approved by the Cabinet.

Article 1 - Definitions

In the application of the provisions of this Decision, the following words and expressions shall have the meanings assigned against each, unless the context requires otherwise: