On the 24th of September, 2017 the UAE`s Cabinet of Ministers adopted the Resolution No. (40) on (the “Resolution”). This action was commenced after earlier introduction of 5% rated value added tax (the “VAT”) in the region.

That said, the Resolution outlines the amount of fines to be levied in case of violation of the UAE laws on: 

• Tax procedures;
• Excise tax;
• and VAT.

The Resolution envisages individuals, companies, tax agents and their legal representatives as subjects of non-compliance with tax laws. The amount of penalties ranges from AED 2 500 to AED 50 000 depending on the offences committed by subjects.

Below we outline the short list of examples of penalties approved in the Resolution.