Failure to update license information on the FTA website can result in a fine of 1,000 dirhams.
1,000 dirhams fine in the UAE for not updating license information.
Companies and individuals subject to tax in the UAE must ensure that any changes to the information registered with the Federal Tax Authority, FTA, that require updating tax records are reported to this authority in a timely manner.
According to current regulations of the Federal Tax Authority, failure to notify about changes that require updating tax records can lead to an administrative fine. This fine is set at 1,000 dirhams for each violation and may increase to 5,000 dirhams if the violation is repeated within 24 months.
This can include changes such as amending or renewing a business license, changing registered activities, changing address, changing contact information, changing company structure, or other information registered in the company's tax file with the FTA.
Therefore, merely renewing or amending the license is not sufficient; companies must ensure that their business information is also updated in the UAE tax system.
The Federal Tax Authority had previously reduced some administrative fines and reviewed the penalty framework to encourage businesses to voluntarily comply with regulations. However, the responsibility for timely notification of significant changes to the company remains with the tax registrants.
For this reason, companies are advised to check their tax file status after any changes to their license or registered information to avoid potential fines.
Source: Gulf Times