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Exceptional Extension of Tax Period for Excise Tax Registrants in Light of the 24-Hour Movement Restriction in Some Areas Announced by Federal Tax Authority

The Federal Tax Authority (FTA) has repeated its full dedication to supporting taxpayers and allowing them to fulfil their tax obligations during these exceptional times, as authorities ramp up their preventive efforts to prevent the spread of the novel Coronavirus (COVID-19).

With that in mind, the FTA circulated a decision to prolong the Tax Period, which began on March 1, 2020, for businesses registered for Excise Tax for one month on a remarkable basis. The Period now covers the months of March and April 2020, and ends on April 30, 2020, enabling registered businesses adequate time to fulfil their tax obligations before the deadline. The FTA noticed that Excise Tax registrants are needed to file two separate Tax Returns, one for March and one for April 2020, and settle the total amount due for the two months no later than Sunday, May 17, 2020.

In a press statement issued on April 14th 2020, the FTA explained that the deadline takes into consideration the date set by Authorities to implement the 24-hour restrictions on movement for individuals and vehicles, enforced in particular areas of the UAE.

The FTA appreciates that current conditions may prevent Taxable Persons from fulfilling these obligations within the legal timeframes, the statement continued. The Taxable Persons registered for Excise Tax constituting 1,100 Registrant are required to submit several declarations detailing their production, import, or release of Excise Goods from Designated Zones.

The FTA stated that it will proceed offering all of its services remotely, facilitating registration procedures, as well as the filing of periodic Tax Returns and payment of due taxes. The advanced electronic system promotes and facilitates self-compliance, as it enables Taxable Persons or their representatives to complete all transactions rapidly, easily, and with no need for personal contact or paper documents.

The FTA repeated its dedication to maintaining contact with all stakeholders in the tax system, answering their enquiries, and offering them with the data they need on systems, legislation, and executive procedures. Registrants can get in touch by the call centre or by email.

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