Website Last updated:

May 15, 2026

The FTA has implemented a grace period for registrants to update their information in tax records without administrative penalties. This period runs from 1 January 2024 to 31 March 2025. The dispensation applies to changes such as address, trade license activities, and legal status. For any administrative penalties that were imposed for such failures between 1 January 2024 and the system implementation date, the FTA will automatically reverse them. If a penalty was already paid, the amount will be credited back to the registrant's tax account, requiring no action from their side.

TAXP007

Tax Procedures Public Clarification

Grace period to update information in tax records

Issue

Registrants are required to inform the FTA within 20 business days of the occurrence of any event that might require the amendment of information related to their tax records kept by the FTA.

Failing to inform the FTA within the prescribed period of such changes constitutes a tax violation and results in the imposition of administrative penalties.

To encourage registrants to update their records with the FTA, a Cabinet Decision was issued to implement a grace period in which registrants may rectify their tax records without incurring administrative penalties.

This Public Clarification provides more information regarding the special dispensation for updating records with the FTA.

Summary

Administrative penalties will not be imposed on registrants that update the information in their tax records during the grace period starting on 1 January 2024 and ending on 31 March 2025.

In instances where such administrative penalties were already imposed for failing to update information in the registrants’ tax records within the legally prescribed period, during the period from 1 January 2024 until the implementation of the grace period within the FTA’s system, these penalties will be reversed.

Detailed analysis

Introduction

Registrantsare required to inform the FTA of any event that might require the amendment of information related to their tax record kept by the FTA, including the following changes:

Name, address and email address.
Trade licence activities.
Legal entity type, partnership agreement for unincorporated partnerships and articles of association or its equivalent.
Nature of the business of the registrant.
The address from which any business is conducted by the registrant.

Failure to inform the FTA of such changes within 20 business days from occurrence is a tax violation and is subject to administrative penalties.

Grace period

To encourage registrants to update the information in their tax records held by the FTA, administrative penalties will not be levied when registrants update such information during the grace period starting from 1 January 2024 until 31 March 2025.

Furthermore, if an administrative penaltywas imposed on registrants during the period from 1 January 2024 until the implementation date of the grace period for failing to update the information in their tax records held by the FTA, such penalty will be reversed.