Staying in compliance with Tax Regulations is a crucial responsibility for firms operating in the United Arab Emirates. An important but frequently forgotten part is keeping your business documents up to date with the Federal Tax Authority (FTA). This involves timely updates. When your license, business structure, or legal information change, you must go through the tax record modification process. This includes making timely updates whenever there are changes to your license, business structure, or legal details—a process known as a Tax Records Amendment.
In this article, Unicorn Global Solutions provides a detailed guide to help you understand when and how to update your tax information, the consequences of failing to do so, and the available methods for compliance.
Why you should keep tax records updated?
The UAE government has strict compliance laws to maintain transparency and accountability. According to the cabinet decision number 49 of 2021, the change related to any business should be informed to the FTA within 20 working days. This includes a legal structure, license renewal or changes in business activity.
Failure to follow these rules may lead to:
- Administrative fines (starting at AED 5,000)
- Delays in VAT or corporate tax processing
- Difficulty obtaining tax clearance certificates
- Exposure to audits and compliance checks
A timely Tax Records Amendment not only avoids penalties but also ensures that your business remains in good standing with UAE regulatory bodies.
Common Scenarios That Need a Tax Records Update
Many changes in your business situation may require you to inform the FTA. The most common examples here are:
1. Issuing a New License for an LLC
If a business changes its structure or launches a new Limited Liability Company (LLC), this change must be reflected in its tax record.
2. Renewal of Commercial Licenses
Each time your trade license is renewed, an update to your tax record may be necessary to reflect the new validity period or license details.
3. Amending Commercial Licenses
Businesses that modify their commercial activities, office locations, or other license information (while retaining the same legal form) are also expected to inform the FTA.
4. Cancellation of an LLC License
If your company ceases operations and the license is cancelled, this information must be updated to deregister or revise the tax record accordingly.
5. Cancellation of a Sole Proprietorship License
When a sole proprietorship closes down or consolidates under another license, it’s important to notify the FTA, especially if other business activities are still active under the same registrant.
How to Complete a Tax Records Amendment
The UAE offers flexible options to update your tax records. Depending on your priority and complexity, you can choose one of the following:
✅ EmaraTax Portal
This is the FTA’s official online system for all tax-related services. Here’s how it works:
- Log in with your credentials
- Select the option for registration amendment
- Upload necessary documents (like updated trade licenses)
- Submit and track your request
✅ Certified Tax Agents
For complex situations like mergers or multiple business updates, hiring a certified tax agent is advisable. Unicorn Global Solutions offers professional support to handle the entire amendment process on your behalf, ensuring accuracy and compliance.
✅ Tas’heel Service Centres
If you prefer a physical visit, Tas’heel centers across the UAE provide government service support. You can submit your request and get real-time assistance from trained professionals.
Deadline and Compliance
Missing the deadline could result in:
The law clearly states that you must complete any Tax Records Amendment within 20 working days from the date the change occurred. This deadline is non-negotiable.
- Immediate fines
- Non-compliance records on your FTA profile
- Difficulty in availing other tax services such as refunds or certificates
For businesses with ongoing changes or multiple licenses, it’s wise to audit your records regularly.
Consequences of Ignoring the Amendment Process
Neglecting to update your FTA profile can lead to significant issues that go beyond fines. These include:
- Ineligibility to file Tax returns
- Delays in refund approvals
- Risk of being flagged for tax audits
- Suspension of your tax account
A simple Tax Records Amendment, when completed on time, can help you avoid all of these risks.
Conclusion
Staying compliant with UAE tax laws doesn’t have to be difficult. The FTA provides digital tools like the EmaraTax portal, and expert services like those offered by Unicorn Global Solutions make the process even smoother.
Whether you’re expanding, restructuring, or closing your business, it’s crucial to keep your records updated. Filing a Tax Records Amendment is more than a regulatory obligation—it’s part of building a reliable and trustworthy business. Unicorn Global Solutions is here to help! Text us on whatsApp or call us today .
Frequently Asked Questions (FAQs)
The 'edit' option is used to make a minor change such as updating contact details or communication preferences, which do not require approval from the Federal Tax Authority (FTA) and are immediately applied. In contrast, 'Amendment' option is for important changes such as business license information, ownership structure or legal unit details updating. These changes require FTA review and approval and the process may take some working days.
You must submit the amendment within 20 working days from the date of change.
Yes. Updated license details must be reflected in your FTA profile.
Yes, through the FTA’s EmaraTax portal.
Updated trade license, Emirates ID, and legal documents reflecting the change.
Absolutely. Our certified tax experts handle the process end-to-end to ensure full compliance.
