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⚡ Quick answer
UAE registrants must notify the Federal Tax Authority within 20 business days of any event that may require amendment of their tax-record information — including a change in shareholding or ownership, name, address, email, trade-licence activities, legal entity type or nature of business. This duty is set by Article 6 of Cabinet Decision No. 74 of 2023 (the Executive Regulation of Federal Decree-Law No. 28 of 2022 on Tax Procedures). Failing to notify carries an administrative penalty of AED 1,000 per violation, rising to AED 5,000 if repeated within 24 months (per Cabinet Decision No. 129 of 2025, effective 14 April 2026).
Here's a trap that catches profitable, well-run companies: you restructure ownership — say, two shareholders become one after a buy-out — update the trade licence and the MOA with the free zone, and consider the job done. It isn't. Your FTA tax record still shows the old ownership, and the law expected you to fix that within 20 business days. Months later, a quiet line appears under "Other Payments Due" on EmaraTax: a penalty for failing to inform the Authority of a change to your tax record.
It's an easy miss, because nothing about updating the FTA feels urgent at the time. But the clock is short, and the penalty is automatic.
The rule
What the law actually requires
Under Article 6 of Cabinet Decision No. 74 of 2023 — the Executive Regulation of the Tax Procedures Law — a registrant must notify the FTA within 20 business days of any event that might require amending the information held in its tax record. The Regulation specifically names:
- Name, address and registered email address
- Trade licence activities
- Legal entity type
- Nature of the taxpayer's business
- The address from which the business is conducted (if applicable)
The duty isn't triggered when you "get around to it" — it's triggered by the event. The 20 business days run from the change itself.
In practice
The changes that trip people up
Beyond the items named in the Regulation, the events that in practice require you to update your FTA record include:
- Change in ownership
- Change in shareholding
- Updated trade licence copy
- Updated MOA
- Change in licence activities
- Trade licence expiry / renewal
- Change in contact details
- New or additional branch
- Customs registration updates
- Banking details
- Legal entity / structure change
- Change in business address
A change in shareholders — even going from two owners to one — sits squarely in this list. It changes who owns and controls the registered entity, which is exactly the kind of information the FTA expects to be kept current.
The cost
What the penalty is now
The penalty for failing to notify the FTA of a change requiring amendment of your tax record was reduced under Cabinet Decision No. 129 of 2025, effective 14 April 2026. The current position:
| Violation | Administrative penalty |
|---|---|
| First violation | AED 1,000 |
| Repeat within 24 months | AED 5,000 |
That's a meaningful reduction from the previous AED 5,000 (first) / AED 10,000 (repeat) — but it's still a penalty for an entirely avoidable administrative miss, and it appears as overdue on EmaraTax until paid.
⚠️ It's per change — and it compounds with the underlying issue
The penalty attaches to the failure to notify. If an un-updated record later causes a wrong filing, a mismatched TRN, or problems during a refund or audit, the notification penalty can be the least of it. Keeping the record current is cheaper than every downstream consequence of a stale one.
What to do
How to stay on the right side of the 20 days
- Treat every corporate change as a tax event Share transfer, new partner, address move, activity change, new branch — each one starts a 20-business-day clock with the FTA.
- Gather the updated documents The amended trade licence, MOA, share-transfer resolution and IDs as relevant to the change.
- Amend the record on EmaraTax Update the registration details and upload the supporting documents within the window.
- Keep VAT and Corporate Tax records aligned The same change usually needs reflecting across both registrations.
- Diarise it at the point of change Don't wait for the free zone process to finish — the FTA clock runs in parallel.
✅ Already past the deadline?
Update the record now regardless — prompt correction is exactly what the FTA's framework encourages, and leaving it stale only risks a repeat violation and further problems. We can review your FTA records, identify what's out of date, and amend them.
20 days
Business days to notify the FTA
AED 1,000
First-violation penalty
AED 5,000
Repeat within 24 months
Art. 6
Cabinet Decision 74/2023
Sources & authority: Article 6, Cabinet Decision No. 74 of 2023 (Executive Regulation of Federal Decree-Law No. 28 of 2022 on Tax Procedures) — duty to notify within 20 business days. Penalty amounts per Cabinet Decision No. 129 of 2025, effective 14 April 2026 (AED 1,000 per violation; AED 5,000 if repeated within 24 months), as announced by the UAE Federal Tax Authority. Always confirm the current rules for your situation.
Had a change? Let's update your FTA record before the clock runs out.
We review your VAT and Corporate Tax records, identify anything out of date after a shareholding, licence or address change, and amend it on EmaraTax with the right supporting documents.
Related services
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Corporate Tax Compliance
We keep your Corporate Tax registration and records aligned with ownership, licence and address changes.
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Amendments
VAT Registration & Record Updates
We amend your VAT registration details on EmaraTax within the 20-business-day window, with supporting documents.
Learn more →
FAQ
Frequently asked questions
Do I have to tell the FTA when my shareholders change?
Yes. A change in shareholding or ownership is a change that may require amendment of your tax record, so you must notify the FTA within 20 business days under Article 6 of Cabinet Decision No. 74 of 2023.
What's the penalty for not updating my information?
AED 1,000 per violation, rising to AED 5,000 if the same violation is repeated within 24 months — the reduced amounts under Cabinet Decision No. 129 of 2025, effective 14 April 2026.
How long do I have to update the FTA?
20 business days from the event that requires the amendment — for example the date of the share transfer, address change or licence-activity change.
Which changes have to be reported?
The Regulation names name, address and email, trade-licence activities, legal entity type, nature of business, and business address. In practice this also covers ownership/shareholding changes, MOA and trade-licence updates, licence expiry, contact details, branches, customs registration and banking details.
I updated my trade licence with the free zone — isn't that enough?
No. Updating the free zone or licensing authority does not update your FTA tax record. The FTA must be notified separately on EmaraTax within the 20-business-day window.
I already missed the deadline — what now?
Update the record as soon as possible. Prompt correction limits exposure and avoids a repeat violation. We can review your records and make the amendments for you.
This article is for general information only and does not constitute legal or tax advice. Notification obligations, deadlines and penalty amounts are set by Federal Decree-Law No. 28 of 2022, Cabinet Decision No. 74 of 2023 and Cabinet Decision No. 129 of 2025, and can change; always confirm the current position for your specific situation. For assistance, contact Fastlane Consultancy.