Blog
UAE Cabinet Decision No. 129 of 2025: Key Changes and Business Implications
Strategic Tax Support from HAS Global Tax Consultants
The United Arab Emirates continues to advance its tax framework to promote compliance, transparency, and sustainable business growth. The issuance of Cabinet Decision No. 129 of 2025 represents a significant milestone in this progression — replacing Cabinet Decision No. 108 of 2021 and redefining the approach to the imposition and administration of tax penalties.
At HAS Global Tax Consultants, we recognize that staying informed about such regulatory developments is essential for all taxable persons and entities operating in the UAE. Below, we outline the key implications of this new decision and its potential impact on businesses.
Key Developments and Comparisons
The transition from Cabinet Decision No. 108 of 2021 to Cabinet Decision No. 129 of 2025 reflects the UAE’s commitment to a more balanced, fair, and simplified tax compliance system.
The new decision introduces several notable enhancements, including:
- Revised penalty structure for late filings, incorrect returns, and non-disclosures.
- New 14% annualized penalty on unsettled payable tax amounts.
- Clarified treatment for voluntary disclosures and tax audits.
- Updated penalties for Excise and VAT violations, such as failure to issue invoices or display prices inclusive of tax.
How HAS Global Tax Consultants Can Help
At HAS Global Tax Consultants, our experienced team provides expert guidance on navigating the evolving UAE tax landscape — from Corporate Tax and VAT compliance to administrative penalty assessments and dispute resolution.
We assist clients in evaluating how the new decision may affect their tax obligations and compliance strategies, ensuring alignment with current legislation and best practices.
For a personalized assessment of your organization’s tax position under Cabinet Decision No. 129 of 2025, contact our advisory team today.
Contact HAS Global Tax Consultants — Your Trusted Partner in UAE Corporate Tax, VAT, and Regulatory Compliance.