Some of the Do’s and Don’ts of being a tax registrant in UAE are discussed in this blog. Hope you enjoy the read!
Do’s:
1. Register for tax: This is foremost among the do’s and don’ts of being a tax registrant in UAE. One must know who the tax registration process applies to. And this applies to all businesspersons in the UAE. Therefore, for them it is mandatory to register with the Federal Tax Authority (FTA).
2. Maintain accurate records: Taxpayers must maintain accurate records of their financial transactions. This includes invoices, receipts, and expenses, for at least 5 years.
3. Submit tax returns on time: Taxpayers must submit tax returns on time. This is to avoid penalties and fines.
4. Display your TRN on documents: This applies to all businesses in the UAE once they register for tax. They must display their Tax Registration Number (TRN) on all business documents. For instance, these documents can be invoices, bills, and various other business documents.
5. Seek professional advice: Seek professional advice from a tax consultant or accountant. Moreover, this can help you solve all your questions or concerns about tax compliance in the UAE.
Don’ts:
1. Don’t evade taxes: Tax evasion is a serious offense in the UAE. In addition, this can result in significant penalties and fines, as well as legal action.
2. Don’t make false statements: Taxpayers must provide accurate information on their tax returns. means one must not make false statements or misrepresentations.
3. Don’t claim false deductions: Taxpayers must only claim deductions backed by proper documentation.
4. Don’t fail to maintain accurate records: One may incur penalties and fines. For instance, when he or she fails to maintain accurate records.
5. Don’t ignore FTA communications: Taxpayers must respond to FTA communications. Moreover, this includes significant requests for information or audits.
In conclusion, tax registrants in the UAE should follow all tax laws and regulations. They have to maintain accurate records. In addition, they can seek professional advice when necessary. They should also avoid tax evasion, false statements, and false deductions. Furthermore, they must respond to FTA communications.
Read our latest blog on the topic Obligations of a Tax Registrant in the UAE Region – Based on FTA Guidelines for more insights!
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