UAE Federal Tax Authority Mandatory Registration amendments – 20 business days deadline

We would like to inform you that if your UAE based Company is registered for VAT and any circumstances occur that will impact your Tax records kept by the FTA, as provided during your registration, you must inform the FTA by updating your records within 20 business days from the occurrence of such circumstances.

 These circumstances encompass, but are not limited to, updating:

  • Trade license copy
  • MOA Copy
  • Change in License activities
  • Trade license expiry date
  • Change in Ownership
  • Change in Shareholding
  • Change in contact details
  • Change or Addition in branch
  • Updating Custom Registration
  • Banking details and etc.

If a Company failed to inform FTA of any situation that may require amending the information related to its tax record, a penalty of AED 5,000/- for first time & AED 10,000/- in case of repetition will be applied.

Should you require further guidance or have any inquiries regarding this matter, please do not hesitate to reach out.

You have a question? Get In Touch

Tel: +971 509616354 or +971 58 559 3508

E-mail: info@altuscitadelservices.com

Frequently Asked Questions (FAQs)

Is ILOE mandatory for employees working in free zones?

Yes. ILOE applies to all private sector employees in the UAE, including those employed under DMCC, JAFZA, and other free zones. The only exceptions are DIFC and ADGM employees, for whom the scheme is voluntary.

No. The ILOE premium is paid entirely by the employee. There is no employer contribution and no administrative requirement on the company. The employer’s only recommended role is informing new hires about the scheme during onboarding.

No. ILOE compensation is available only for involuntary termination by the employer. Employees who resign or are dismissed for disciplinary reasons are not eligible to claim benefits.

Employees who fail to subscribe, or who allow their premiums to lapse for more than three months, face a fine of AED 400. This can be deducted from salary or end-of-service benefits, and outstanding fines may block work permit renewal.

Yes. Because ILOE is linked to the employee’s Emirates ID rather than to any specific employer, coverage continues uninterrupted when an employee changes jobs, provided they maintain their subscription and premium payments.

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