The answer
in one screen.
- 01
Cabinet Decision No. 129 of 2025 took effect on 14 April 2026.
- 02
The FTA says a number of penalties were reduced and some calculation mechanisms changed.
- 03
Do not use a pre-April-2026 penalty table for a current compliance decision.
- 04
Check the type of violation, relevant tax period, notice date and corrective action before estimating exposure.
- 05
For material disputes or interpretation, use a qualified tax professional or legal adviser.
What changed on 14 April 2026
The FTA announced on 15 April 2026 that Cabinet Decision No. 129 of 2025 had entered into force the previous day. The decision amends the administrative-penalty framework for violations of UAE tax legislation.
According to the FTA, many penalty types were reduced or had their calculation mechanisms amended. That means a penalty summary saved from an older article or slide deck may no longer describe the current position.
What businesses should do first
If the company receives a notice or discovers a compliance error, identify the tax type, period, filing/payment date, amount involved, whether a voluntary correction has been made and which version of the penalty rules applies.
Avoid jumping directly to a number. The legal classification of the violation and timing can change the calculation.
- Save the FTA notice and transaction history.
- Reconcile the return, payment and filing dates.
- Identify whether the issue is registration, filing, payment, record update, return accuracy or another category.
- Check current FTA guidance and the governing decision.
- Document any correction, voluntary disclosure or payment made.
Why current guidance matters
The amended framework covers violations connected with UAE tax procedures and taxes including VAT and Excise Tax, and businesses may also have Corporate Tax compliance obligations running in parallel.
Treat the official FTA announcement and the current legal text as the primary reference. Commentary can help explain the rule, but it should not replace the decision itself.
When to escalate
A simple administrative housekeeping issue may be resolved through normal compliance work. A material assessment, disputed penalty, voluntary disclosure, audit issue or legal-interpretation question should be reviewed by an appropriately qualified tax professional or legal adviser.
MNK can help organise the records and next-step workflow, but it should not be represented as replacing regulated specialist advice where that is required.
Quick answers
before you act.
When did Cabinet Decision No. 129 of 2025 take effect?+
The FTA states that it took effect on 14 April 2026.
Did every UAE tax penalty disappear?+
No. The FTA says many penalties were reduced or their calculation mechanisms amended. The specific violation must be checked against the current framework.
Can I use a tax penalty table published before April 2026?+
It should not be treated as current without verification because the framework changed on 14 April 2026.
Does this only affect VAT?+
No. The FTA describes amendments to administrative penalties for violations of UAE tax legislation more broadly.
Can MNK provide legal advice on a tax dispute?+
MNK can coordinate information and compliance support; a material dispute or specialist interpretation may require an appropriately qualified tax or legal professional.
Verify the rule
at the source.
This guide is written from current official material available on 29 September 2026. Requirements can change after publication, so use the linked authority source before a filing or deadline decision.