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The UAE continues to refine its tax landscape to enhance compliance and support business growth. The introduction of Cabinet Decision No. 129 of 2025 marks a major milestone in this evolution, replacing Cabinet Decision No. 108 of 2021 and reshaping the way administrative tax penalties are imposed and administered.
At Hussain Al Shemsi Chartered Accountants – Sharjah, we believe understanding these changes is essential for every taxable person operating in the UAE. Below, we highlight how this decision impact your business.
Fast forward to 2025, and the UAE government has taken a forward-looking step. Cabinet Decision No. 129 of 2025, effective from 14 April 2026, introduces a simplified, non-compounding penalty framework aimed at improving fairness and encouraging voluntary compliance.
Key highlights include:
At Hussain Al Shemsi Chartered Accountants, we assist businesses across the UAE in understanding and complying with the latest tax legislation — from VAT and Corporate Tax to administrative penalty management.
If you’d like a personalized assessment of how Cabinet Decision No. 129 of 2025 may affect your compliance strategy, our experts are here to help.
These updates reflect the UAE’s commitment to maintaining a business-friendly tax environment while reinforcing the importance of compliance.
Get in touch with Hussain Al Shemsi Chartered Accountants for expert auditing, accounting, tax, and advisory services in the UAE.
Hussain Al Shemsi Chartered Accountants is a full-service professional chartered accountant firm, licensed by the Ministry of Economy, United Arab Emirates, to practice auditing and accounting.
Al Majaz 1, Sharjah, UAE
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