1

The failure of the person conducting Business to keep the required records and other information specified in Tax Procedures Law and the Tax Law

10,000 for the first time.
20,000 in case of repetition.

10,000 for the first time.
50,000 in case of repetition.

2

The failure of the Person conducting Business to submit the data, records, and documents related to Tax in Arabic to the Authority when requested.

20,000

20,000

3

The failure of the Taxable Person to submit a registration application within the timeframe specified in the Tax Law.

10,000

20,000

4

The failure of the Registrant to submit a deregistration application within the timeframe specified in the Tax Law.

1,000 in case of delay, and on the same date monthly thereafter, up to a maximum of 10,000.

10,000

5

The failure of the Registrant to inform the Authority of any circumstance that requires the amendment of the information pertaining to its Tax record kept by Authority.

5,000 for the first time.
10,000 in case of repetition.

5,000 for the first time.
10,000 in case of repetition.

6

The failure of the Legal Representative of the Taxable Person to inform the Authority of its appointment as Legal Representative within the specified timeframe, in which case the Penalties will be due from the Legal Representative’s own funds.

10,000

20,000

7

The failure of the Legal Representative for the Taxable Person to file a Tax Return within the specified timeframe, in which case the Penalties will be due from the Legal Representative’s own funds.

1,000 for the first time.
2,000 in case of repetition within 24 months.

1,000 for the first time.
2,000 in case of repetition within 24 months.

8

The failure of the Registrant to submit the Tax Return within the timeframe specified in the Tax Law.

1,000 for the first time.
2,000 in case of repetition within 24 months.

1,000 for the first time.
2,000 in case of repetition within 24 months.

9

The failure of the Taxable Person to settle the Payable Tax stated in the submitted Tax Return or Voluntary Disclosure, or the Tax Assessment he was notified of, within the timeframe specified in the Tax Law.

1: The Taxable Person shall be obliged to pay the penalty applicable to late payment of Payable Tax up to a maximum of 300%, pursuant to the following:
a: 2% of the unpaid Tax shall be due on the day following the due date of payment, where the settlement of Payable Tax is late.
b: 4% monthly penalty is due after one month from the due date of payment, and on the same date monthly thereafter, on the unsettled Tax amount to date.

2: For the purposes of this penalty, the due date of payment in the case of the Voluntary Disclosure and Tax Assessment, shall be as follows:
a. 20 business days from the date of submission, in the case of a Voluntary Disclosure.
b. 20 business days from the date of receipt, in the case of a Tax Assessment.

The Taxable Person shall be obligated to pay a late payment penalty consisting of:
– (2%) of the unpaid tax is due immediately once the payment of Payable Tax is late;
– (4%) is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid.

(1%) daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with upper ceiling of (300%).

10

The submittal of an incorrect Tax Return by the Registrant.

1: Fixed penalty shall be applied:

1,000 for the first time.
2,000 in case of repetition.
2: As an exception to Clause 1 of this penalty, if the incorrect Tax Return results in a Tax difference less than the fixed penalty listed in Clause 1 of this penalty, a penalty equal to the that Tax difference of at least 500 shall be imposed.
3: Anyone correcting their Tax Return prior to the due date of payment shall be excluded from the penalty imposed under Clauses 1 and 2 of this penalty.

Two penalties are applied:
1: Fixed penalty of:
3,000 for the first time.
5,000 in case of repetition
2: Percentage based penalty shall be applied on the amount unpaid to the Authority due to the error and resulting in a tax benefit as follows:
50% if the Registrant does not make a voluntary disclosure or he made the voluntary disclosure after being notified of the tax audit and the Authority has started the tax audit process, or after being asked for information relating to the tax audit, whichever takes place first.
30% if the Registrant makes the voluntary disclosure after being notified of the tax audit and before the Authority starts the tax audit.
5% if the Registrant makes a voluntary disclosure before being notified of the tax audit by the Authority.

11

The Voluntary Disclosure by the Person/Taxpayer of errors in the Tax Return, Tax Assessment or Refund Application pursuant to Article 10 (1) and (2) of the Tax Procedures Law.

Without prejudice to the potential consequences of the penalty mentioned in Clause 10 of this Table, a percentage-based penalty shall be applied on the difference between the Tax that was calculated and that which should have been calculated, pursuant to the following:

1: 5% on the difference, where the Voluntary Disclosure is submitted within one year from the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application;

2: 10% on the difference, where the Voluntary Disclosure is submitted within the second year following the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application;

3: 20% on the difference, where the Voluntary Disclosure is submitted within the third year following the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application;

4: 30% on the difference, where the Voluntary Disclosure is submitted within the fourth year from the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application;

5: 40% on the difference, where the Voluntary Disclosure is submitted after the fourth year from the due date of submission of the Tax Return, the Tax Assessment, or the relevant refund application.

Two penalties are applied:
1: Fixed penalty of:
3,000 for the first time.
5,000 in case of repetition

2: Percentage based penalty shall be applied on the amount unpaid to the Authority due to the error and resulting in a tax benefit as follows:
50% if the Person/Taxpayer makes a voluntary disclosure after being notified of the tax audit and the Authority starting the tax audit or after being asked for information relating to the tax audit, whichever takes place first.

30% if the Person/Taxpayer makes the voluntary disclosure after being notified of the tax audit but before the start of the tax audit.

5% if the Person/Taxpayer makes voluntary disclosure before being notified of the tax audit by the Authority.

12

The failure of the Taxable Person to voluntarily disclose errors in the Tax Return, Tax Assessment or Refund Application pursuant to Article 10 (1) and (2) of this the Tax Procedures Law before being notified that he will be subject to a Tax Audit.

Without prejudice to the potential consequences of the penalty mentioned in Clause 10 of this Table, the person will be subject to:

1: A penalty of 50% on the amount of error.

2: A penalty of 4% for every month or part of the month, of the following:

a: The unpaid Tax to the Authority, from the date the payment is due for the relevant Tax Period until the date of receipt of the Tax Assessment.

b: The Tax that was not returned to the Authority due to ineligible refund, from the date of Tax refund until the date of receipt of the Tax Assessment.

Two penalties are applied:

1:  Fixed penalty of:

3,000 for the first time.

5,000 in case of repetition

2: 50% of the amount unpaid to the Authority due to the error resulting in a tax benefit for the Person/Taxpayer.

13

The failure of the Person conducting Business to facilitate the work of the Tax Auditor in violation of the provisions of Article 21 of the Tax Procedures Law.

20,000

20,000

14

The failure of the Registrant to calculate Tax on behalf of another Person where the Registrant Taxable Person is obliged to do so under the Tax Law.

1: The Registrant shall be obliged to pay the penalty applicable to late settlement of Payable Tax up to a maximum of 300%, pursuant to the following:

a: 2% of the unpaid Tax is due on the day following the due date of payment, where the settlement of Payable Tax is late.

b: 4% monthly penalty is due after one month from the due date of payment, and on the same date monthly thereafter, on the unsettled Tax amount to date.

2: For the purposes of this penalty, the due date of payment in the case of Voluntary Disclosure and Tax Assessment, shall be as follows:

a: 20 business days from the date of submission, in the case of a Voluntary Disclosure.

b: 20 business days from the date of receipt, in case of a Tax Assessment.

The Registrant shall be obligated to pay a late payment penalty consisting of:

2% of the unpaid tax is due immediately once the payment of Payable Tax is late;

4% is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid.

1% daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with upper ceiling of 300%.

15

A Person not accounting for any Tax that may be due on the import of goods as per the Tax Law.

50% of unpaid or undeclared Tax.

50% of unpaid or undeclared Tax.