Why exemption for Taxpayers from Fines and Financial Penalties is essential to Reduce the Consequences of the COVID-19 Pandemic on Businesses

The uninvited pandemic shook the entire world in inexplicable ways. Many personal lives and businesses were affected. When the whole of the world came together in containment to keep each other safe, businesses strived to succeed. Some businesses adapted to the new normal and flourished, while others struggled. From individuals to large-scale industries everyone was affected drastically. 

Out of all the sectors, the common people who were paying monthly EMIs, loans, and the like struggled to make both ends meet. During the first hit of the Covid 19 pandemic, various banks, and the authorities-imposed exemptions on taxes and other payments. This came as a boon to the people. 

At present, as the Covid-19 cases are increasing, Zakat, Tax and Customs Authority (ZATCA) exempts its taxpayers from paying taxes and financial penalties. The exemptions which began this month can be availed till November 30, 2022. The thoughtful action is to acknowledge the adverse effects of Covid-19 on the economy and the businesses. 

Who does it benefit?

The relaunch of the exemption will aid numerous businesses in UAE. If you run a business, it is essential to know where all you will benefit from the exemption, at least till November 30, 2022. 

As per the authority, the fines covered under the exemption decision comprise fines for late registration in all tax systems, late payment, late filing of returns fines in all tax systems, and fines to correct VAT returns. Violations of VAT field control regulations related to the application of e-invoicing regulations and other general rules may result in fines.

How to reap the benefits of the initiative?

According to the authority, if a business or initiative has to use the benefits from the initiative, non-registered individuals who had to register previously must register for VAT, submit all due returns that have not been previously submitted to the authority, publicize all taxes that are not disclosed, and pay the full tax debt related to the statements that will be submitted or amended to disclose the tax liabilities due, owing to request an instalment, under the condition that the request is submitted and approved by the Authority during the initiative, and to pay all due instalments on before deadline according to the ZATCA-approved instalment plan.

ZATCA has instructed its tax-paying citizens to educate themselves about the initiative. As a taxpayer, all you need to do is go through the guidelines published on the ZATCA website. The guidelines come with a detailed explanation of the decision’s most important aspects, like the types of penalties included in the initiative. It also shed light on the conditions for benefiting from exempt fines, the steps for the instalment of financial dues, and introducing field control violations.

According to the authority, the initiative excludes penalties for tax evasion, fines paid before the initiative’s effective date, and late payment fees for taxes are included in the instalment agreement that is due after the initiative’s deadline on November 30, 2022.

The Authority has encouraged all the taxpayers to make use of the exemption action plan during the allotted time, which ends in November 2022. You can either contact the authority via its social accounts or if you have an efficient finance service team, they will take care of your needs for you. 

How can a finance service company help you?

Running a business does not mean that you will be well versed in the finance segment. Some people might be new to the jargon and the happenings in the financial world. Meanwhile, an experienced finance team in the industry will have mastered the ups and downs of the markets and the new initiatives in the market. 

They are the expert

An expert financial team will have an expert team that will dedicate their work and time to the organization. Such a team will be able to assist you and aid in any financial needs. 

They are updated

Staying updated on the present market and the events of the market are essential to having a clear idea of the upcoming actions. An experienced finance team always stays up to date on the market trends. 

Tass & Hamjit is a premium finance service company that will help you understand the changes and trends in the market. With years of experience, we are spread across various countries providing multiple services for businesses. Choose the best finance company in the world to enjoy seamless services. 

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