Executive Council Resolution No. (101)
of 2024
Approving Administrative Penalties and
Fines Applicable to
Foreign Banks Operating in the Emirate
of Dubai[1]
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We, Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai,
Chairman of the Executive Council,
After perusal of:
Law No. (1) of 2016 Concerning the Financial
Regulations of the Government of Dubai, its Implementing Bylaw, and their
amendments;
Law No. (26) of 2023 Concerning the Executive Council
of the Emirate of Dubai; and
Law No. (1) of 2024 Concerning Tax on Foreign Banks
Operating in the Emirate of Dubai,
Do hereby issue this Resolution.
The
words and expressions
mentioned in this Resolution will have the same meaning assigned to them in the
above-mentioned Law No. (1) of 2024.
a. Without prejudice to any stricter penalty stipulated in any other resolution, the
administrative penalties and fines applicable to Foreign Banks, as set out in
the Schedule attached to this Resolution, are hereby approved.
b. Upon repetition of the same administrative violation within two (2) years from
the date of the previous violation, the amount of the fine referred to in the
Schedule attached hereto will be doubled. A fine must not exceed one million
dirhams (AED 1,000,000.00).
The fines collected pursuant to this Resolution will be paid to
the Public Treasury of the Government of Dubai.
This Resolution will be published in the Official Gazette and will
come into force on the day on which it is published.
Hamdan bin Mohammed
bin Rashid Al Maktoum
Crown Prince of Dubai
Chairman of the Executive Council
Issued in Dubai on 10 December 2024
Corresponding to 9 Jumada al-Thaniyah 1446 A.H.
Schedule of
Administrative Penalties and Fines Applicable to
Foreign Banks Operating in the Emirate of Dubai
|
SN |
Violation |
Fine (in dirhams) |
|
1 |
Failure to provide the DOF, within the time
frames it prescribes, with the Tax Return, tax forms, and the relevant
supporting documents as adopted by the DOF; or failure to provide the FAA
with the financial statements, financial notes, data, and information required
by the FAA within the time frames it prescribes. |
AED 1,000.00 per each day of delay |
|
2 |
Providing the DOF or the FAA with incorrect
forms, documents, notes, data, or information; or failing to comply with the prescribed
rules and procedures for such submissions |
AED 20,000.00 per each inaccurate or
non-compliant form or document |
|
3 |
Delay in submitting a Voluntary Disclosure
where the Tax Return submitted by a Taxable Person results in an
under-assessment of Tax due or submitting the Voluntary Disclosure at the
time of the Tax Audit. |
Ten percent (10%) of the difference in Tax
established by the Tax Audit, and up to AED 500,000.00 |
|
4 |
Delay in submitting a Voluntary Disclosure
where the Tax Assessment sent to a Taxable Person results in an
under-assessment of Tax due or submitting the Voluntary Disclosure at the
time of the Tax Audit. |
Ten percent (10%) of the difference in Tax
established by the Tax Audit, and up to AED 500,000.00 |
|
5 |
Failure by a Taxable Person to notify the DOF
and the FAA of any change in the Taxable Person’s office address or contact
details |
20,000.00 |
|
6 |
Failure by a Taxable Person to notify the DOF
and the FAA of the cessation of its banking operations in the Emirate. |
20,000.00 |
|
7 |
Committing any act that constitutes a violation
of the resolutions, instructions, and directives issued by the DOF or the FAA
to Taxable Persons |
10,000.00 |
©2025 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict, the Arabic text will prevail.