UAE Amended some Administrative Penalties for Violation of Tax Laws in the UAE

Cabinet Decision No. 49 of 2021 on Amending some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE

In accordance with Cabinet Decision No 49 of 2021 on Amending some Provisions of Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE, which will be effective from 28 June 2021, the FTA would like to inform you that it has released two Public Clarifications, which you can view on the FTA website.

With respect to TAXP002, and if you had any outstanding balances, you would have previously been able to see such outstanding balance on the returns page. From Wednesday 23 June, you will be able to see how much of your balance is related to tax and how much is related to administrative penalties on the My Payments page when you log into E-Services. This link will open a window that will include the following:

  • Tax Payable – this is the outstanding tax balance (based on tax returns you submitted and any adjustments due to voluntary disclosures or tax assessments) and will be updated on a daily basis until 31 December 2021, for you to know how much tax is outstanding and is subject to late payment penalties if not settled by payable date, and needs to be settled in full before 31 December 2021 to benefit from the redetermination of administrative penalties in accordance with Cabinet Decision No 49 of 2021.
  • Late Registration Penalty – this is the outstanding unpaid late registration penalty, if available.
  • Other Penalties Payable – this is the outstanding unpaid administrative penalties balance (other than late registration) and may increase if new administrative penalties are applied or decrease if payments are made or penalty reversed. The balance on 28 June 2021 will be subject to redetermination if conditions stated in Cabinet Decision No 49 of 2021 are met.
  • Net Payable Amount – this is the total amount of Tax Payable and Penalties Payable outstanding at any time.
  • Total Credit – this is the amount of credit that the registrant has with the FTA. FTA will be launching a full dashboard with your Tax Payable and Administrative Penalties

 

 

UAE- New law allowing full foreign ownership of onshore companies takes effect on June 1

The UAE’s Ministry of Economy has confirmed that the amended legislation permitting foreign investors and entrepreneurs to establish and fully own onshore companies, will come into effect from June 1.

Amendment to the Commercial Companies Law will ‘boost country’s competitive edge and facilitate business’, according to UAE Minister of Economy

Minister of Economy Abdullah bin Touq in a tweet confirmed that the latest decision is a new step that reflects the UAE government’s commitment to supporting the economy and enhancing its readiness for the future.

In November 2020, the UAE announced that the of businesses would take effect from December 1, 2020. However, after widening the scope of sectors eligible for full ownership by foreign investors, the law is now ready for roll out from June 1, 2021.

The long-anticipated and widely discussed reform, which will have game-changing implications on the investment landscape of the nation, was approved by President His Highness Sheikh Khalifa bin Zayed Al Nahyan last year.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has said the UAE now enjoys a fertile legislative environment for foreign direct investors in order to enhance the nation’s competitiveness.

Last month, the UAE’s Ministry of Economy also said it was working on a new legislation to include 10 new sectors to the Commercial Companies Law, which allows 100 per cent foreign ownership of onshore companies in the country.

Types of Liquidation Services In Dubai

Liquidation Services In Dubai

The Liquidation Services In Dubai includes the change of an enterprise’s resources into cash, remunerated to various tops which used to add to the maintenance of the company. For example, a company might be liquidated to recompense the debts to the creditors; the lending companies or a bank from which the company required loans once.
It is the previous option which lenders choose by UAE freezone company liquidation, as a company which is in best possible financial health is not subjected to the liquidation process. However, if a company isn’t offering any appropriate growth and the debtors cannot able to pay the debt, and then creditors opt to take action against the organization on behalf of their money.
Liquidation Services In Dubai – In the procedure, the possessions of the company; land, machinery, raw material, products, and other sell-able items are auctioned or retailed straight to a potential buyer. The cash, which is received from the selling of the entire things, is then allocated amongst the lenders.

Also Read :- Vat Review

Benefits

 

  • It occurs to the company, not the people within the company.
  • Management of the liquidation is approved on top of the selected liquidator; alleviating some of the anxiety that a director can acquire thus of the procedure.
  • Once the company is liquidated, creditors can no longer follow directors for expense.
  • As quickly as the company closes, all legal battle against the company is prevented.

Also Read : – Dmcc Free Zone Approved Auditor

Types of Liquidation

Company liquidation is two types:

1. Voluntary Liquidation

In a category voluntary liquidation, the investors of a company will choose to ploy the company as they have no money to back creditors. In this kind of liquidation, main concern is given to the creditors.

2. Compulsory Liquidation

Compulsory liquidation is a kind of company liquidation which is present by court order. Here, the resources of the firm are dispersed to the creditors and contributors based on the precedence of claims.