Urgent: Mandatory Tax Profile Update – Avoid Penalties!
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If you’re a tax registrant in the UAE, it’s time to act fast! The Federal Tax Authority (FTA) has issued a reminder for all businesses to update their tax profiles promptly. Here’s what you need to know to stay compliant and avoid hefty penalties.
What’s the Deadline?
All tax registrants must update their FTA profiles within 20 business days of any changes to avoid fines. However, there’s a grace period allowing businesses to update past changes without penalties—until 31 March 2025.
Why Is This Important?
Failure to update your profile on time can lead to administrative penalties. Updating ensures your business remains compliant with the FTA’s requirements and avoids unnecessary fines.
What Needs to Be Updated?
To stay compliant, you’ll need to update your profile with:
- Renewed Documents: Trade License, Emirates ID, Passport
- Business Changes: Ownership, Address, Business Activity
Example: If your business was registered for tax before your Visa or Emirates ID was issued, you must update your profile with the latest documentation.
Key Dates to Remember
- Until 31 March 2025: No fines will be imposed for past updates.
- After 31 March 2025: Any changes or renewed documents must be updated within 20 business days to avoid penalties.
Step-by-Step Guide to Update Your FTA Tax Profile
Step 1: Create an Account on the FTA Portal
If you already have an account, skip this step.
Visit the FTA e-Services Portal
Go to tax.gov.ae.Sign Up
Choose one of these options:- UAE Pass: A quick and secure method for registration.
- Email Registration: Use this option if UAE Pass is unavailable.
Follow Instructions
Complete the sign-up process by providing the required details.Submit Your Details
Once registered, provide your details to gain access to your tax account/profile.
Note: OTP verification will be required to grant access, and communication will be facilitated via chat or email.
Step 2: Update Your Tax Profile
Once you have access to your account, follow these steps to update your profile:
Log In to Your Account
Use your credentials to access the FTA portal.Navigate to Your Profile Section
Locate the section for updating registrant information.Upload Renewed Documents
- Trade License
- Emirates ID
- Passport
Add Business Changes
Update details like:- Ownership changes
- New business activities
- Change of business address
Review and Submit
Double-check all the updated information before submitting.
FTA’s Grace Period: A Golden Opportunity
Take advantage of the grace period ending on 31 March 2025 to update your profile without incurring penalties. After this date, penalties will be enforced for non-compliance.
Why Staying Compliant Matters
Avoid Penalties
Non-compliance can result in fines and administrative complications.Maintain Business Credibility
An updated tax profile reflects positively on your business’s reputation.Support Economic Growth
Compliance with tax regulations contributes to the UAE’s national economy and enhances its business environment.
Additional Tips for a Smooth Update Process
- Keep Documents Handy: Ensure you have digital copies of your updated Trade License, Emirates ID, and Passport.
- Check Your Email Regularly: The FTA communicates updates and reminders via email.
- Use the FTA Help Center: If you encounter issues, reach out to the FTA for support.
How to Stay Updated
The FTA provides regular updates through its website and public clarifications. Subscribe to their mailing list or follow them on social platforms for the latest announcements.
Common FAQs
1. What happens if I miss the 20-day window for updates after March 2025?
You’ll face administrative penalties. It’s crucial to update your profile promptly.
2. Do I need to update my profile if there are no changes?
No, updates are only required if there have been changes to your documents or business information.
3. Can I use UAE Pass for all FTA-related tasks?
Yes, UAE Pass simplifies many processes, including registration and profile updates.
Final Thoughts
Updating your tax profile is not just a regulatory requirement—it’s an opportunity to ensure your business is positioned for success in the UAE. Use this grace period wisely to make all necessary updates before 31 March 2025.
Need Help?
If you’re unsure about the process or have questions, consult GenZone for guidance. Stay compliant, avoid penalties, and focus on growing your business!
