FTA Grants Grace Period to Update Tax Records — A Strategic Opportunity for UAE Businesses
In a significant move aimed at supporting tax compliance across the UAE, the Federal Tax Authority (FTA) has introduced a grace period running from January 1, 2024, to March 31, 2025, allowing businesses to update their tax registration details without facing administrative penalties.
At Bolster Group, we view this not just as a compliance requirement — but as a strategic opportunity for businesses to realign their tax affairs, reduce risk exposure, and strengthen operational transparency.
What Does This Mean for Your Business?
The FTA now requires that any changes to your company’s tax registration information — including trade license updates, business activity changes, legal structure, contact details, and shareholder information — must be reported within 20 business days. Failing to do so could result in penalties, especially once the grace period ends in March 2025.
But here’s the good news: if your business takes action during the grace period, the FTA will waive all related penalties, even those previously imposed in 2024. This gives companies a valuable window to get their records in order without financial repercussions.
Why This Matters Now
In light of the UAE’s evolving tax landscape — with the recent introduction of Corporate Tax and increasing regulatory scrutiny — maintaining up-to-date, accurate tax information is no longer optional. It’s essential. Businesses that don’t stay compliant may face fines, operational disruptions, and reputational risk.
As tax consultants at Bolster Group, we are already working with clients to:
• Review all registered tax data for gaps or outdated information
• Ensure alignment between commercial licenses and reported activities
• Update key documents (e.g., trade licenses, MoAs, shareholder records) via the EmaraTax portal
• Implement systems to keep records current and automatically report changes going forward
Need Support?
If you’re unsure whether your tax information is up to date, or if you’d like professional assistance in managing your compliance strategy, Bolster Group is here to help. Our tax consultants can guide you through the entire process and ensure you avoid unnecessary penalties — now and in the future.
📩 Contact us today to schedule a tax review or consultation.