FTA Penalty Reconsideration in the UAE

Received an FTA administrative penalty? You may have grounds to challenge it. UAE tax law provides a formal reconsideration process through which businesses can request the FTA to review a penalty decision, and in many cases, penalties can be reduced or waived entirely. ZAMA prepares and submits penalty reconsideration requests on behalf of clients, building the strongest possible case for penalty reduction or waiver.

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Common FTA Penalties in the UAE

The FTA issues administrative penalties for a range of compliance failures, including:

Late VAT registration

AED 20,000

Late corporate tax registration

AED 10,000

Late VAT return filing

AED 1,000 (first offence), AED 2,000 (subsequent)

Late VAT payment

2% of unpaid tax immediately, 4% per month thereafter

Failure to keep required tax records

AED 10,000 (first), AED 50,000 (subsequent)

Errors on tax returns resulting in understated tax

Up to 50% of the understated amount

Can Your Penalty Be Reduced or Waived?

The FTA considers penalty reconsideration requests on the basis of:

Procedural errors in the penalty assessment.
New information not available at the time of the original decision.
Reasonable excuse for the non-compliance.
Mitigating circumstances that affected the taxpayer’s ability to comply.

Not all penalties qualify, but ZAMA’s assessment will tell you quickly whether a reconsideration request has merit.

How ZAMA Handles Your Reconsideration Request

Penalty Assessment

We review the FTA penalty notice, the underlying compliance failure, and your business circumstances to assess the grounds available for reconsideration.

Reconsideration Request Preparation

We prepare a formal written reconsideration request setting out the factual background, legal grounds, and supporting evidence, then submit it to the FTA within the required timeframe (20 business days from the penalty notice date).

FTA Response Management

We track the FTA’s review, respond to any follow-up requests, and advise you on the outcome and any further escalation options if the initial reconsideration is unsuccessful.

Frequently Asked Questions

How long do I have to request FTA penalty reconsideration?

You must submit your reconsideration request to the FTA within 20 business days of receiving the penalty notice. Missing this deadline typically removes your right to challenge the penalty at this stage, so act quickly. Contact ZAMA as soon as you receive any FTA penalty notice.

What is the success rate for FTA penalty reconsiderations?

Outcomes vary significantly depending on the nature of the penalty, the grounds advanced, and the quality of the supporting documentation. Well-prepared requests with strong factual grounds and clear mitigating circumstances have a good prospect of at least partial success. ZAMA will give you an honest assessment of your chances before proceeding.

What happens if my reconsideration request is rejected?

If the FTA rejects your reconsideration request, you may escalate to the Tax Disputes Resolution Committee (TDRC), an independent body that reviews FTA decisions. ZAMA advises on and represents clients at TDRC level where warranted.

Think Your FTA Penalty Is Wrong? Let’s Review It.

ZAMA assesses your penalty notice, advises on your grounds, and prepares the strongest possible reconsideration request, within the required FTA deadline.