Filing voluntary disclosures with the Federal Tax Authority (FTA) is a crucial process for UAE businesses seeking to correct past tax errors or omissions without facing penalties. Whether you operate in Dubai, Abu Dhabi, Sharjah, or other emirates, understanding how to submit voluntary disclosures correctly is essential for compliance in 2025.

This article guides you step-by-step on how to file voluntary disclosures with the FTA while avoiding fines or penalties.

1. What Are Voluntary Disclosures?

Voluntary disclosures are formal communications to the FTA where a taxpayer admits to errors, omissions, or underreported amounts in previously submitted tax returns. This helps rectify mistakes proactively before the FTA initiates an audit or investigation.

2. Why File a Voluntary Disclosure?

• To avoid penalties and interest on unpaid tax amounts.

• To demonstrate good faith and transparency to the FTA.

• To maintain a clean compliance record, important for business reputation in Dubai and beyond.

3. When Should You File a Voluntary Disclosure?

You should file as soon as you discover an error or omission in your VAT or corporate tax filings. Prompt action is critical because voluntary disclosure benefits decrease once the FTA starts an audit or investigation.

4. How to File a Voluntary Disclosure Step-by-Step

• Step 1: Access the FTA Portal: Log into your account on the official FTA website.

• Step 2: Select Voluntary Disclosure Option: Navigate to the voluntary disclosure section under your tax profile.

• Step 3: Provide Details: Clearly explain the nature of the error or omission, the tax periods affected, and the corrected figures.

• Step 4: Attach Supporting Documents: Upload invoices, receipts, or any relevant documents validating the corrections.

• Step 5: Calculate and Pay Outstanding Tax: Submit the corrected tax amount and pay any balance due promptly to avoid interest.

• Step 6: Submit the Disclosure: Review all information and submit the voluntary disclosure form.

5. Common Mistakes to Avoid

• Delaying the filing of disclosures until after an audit notice.

• Providing incomplete or inaccurate information.

• Failing to attach adequate documentation.

• Underestimating the corrected tax liability.

6. Benefits of Timely and Accurate Voluntary Disclosures

• Waiver or reduction of penalties and fines.

• Improved relationship and trust with the FTA.

• Lower risk of future audits or investigations.

• Peace of mind and compliance assurance.

7. Seek Professional Help If Needed

Tax regulations in UAE can be complex. Engaging experienced tax consultants in Dubai, Abu Dhabi, or Sharjah can ensure your voluntary disclosures are accurate and submitted without penalties.

Final Thoughts

Filing voluntary disclosures with the FTA is a proactive way for UAE businesses to correct tax issues and avoid penalties. By acting quickly and following the right process, companies across emirates can safeguard their financial standing and regulatory compliance in 2025.

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