Finance
UAE Revises Tax Penalties Under Cabinet Decision 129 of 2025 | Business Impact Overview
AED 20K
Late registration penalty (doubled in 2025)
50–300%
Penalty for tax evasion
4%/mo
Monthly escalation on late payment
Cabinet Decision No. 129 of 2025 marks a significant recalibration of how the UAE administers tax penalties. Understanding the revised framework is not optional — penalties are applied automatically, and ignorance provides no mitigation.
Updated Penalty Schedule
Voluntary Disclosure — The Most Important Tool
Voluntary Disclosure — Key Facts
▸Must be filed BEFORE FTA audit notification
▸Penalty reduction applies to good-faith errors
▸Does NOT apply to deliberate tax evasion
▸Full tax + late payment surcharge still payable
How Univia Can Help
Univia reviews tax positions, identifies penalty exposure, prepares voluntary disclosures and manages FTA interactions on your behalf.
Contact Univia: info@univiaglobal.com | +971 50 223 5283
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