Cabinet Decision No. 106 of 2025: Understanding the Penalty Regime for Non-Compliance

Introduction to the New Penalty Framework

To ensure the integrity and timely adoption of this critical digital framework, the Ministry of Finance has published Cabinet Decision No. 106 of 2025. This decision details a structured and significant penalty regime for non-compliance. These penalties highlight the government’s serious commitment to the new system.

Overview of Penalties

The penalties outlined in this decision are designed to enforce preparation and compliance across both technology implementation and daily transactional operations. For businesses with a large volume of transactions, the penalties for failing to issue compliant documents can quickly escalate. This makes early adoption a financial necessity.

Detailed Penalty Structure

Below is a table summarizing the various violations and their corresponding penalties:

Violation Description	Penalty
Failure to Implement System or Appoint ASP (By Deadline)	AED 5,000 for each month or part of a month delayed.
Failure to Issue/Transmit E-Invoice or Credit Note	AED 100 per document, capped at AED 5,000 per calendar month.
Failure to Notify FTA/ASP of System Failures	AED 1,000 for each day of delay.
Failure to Update ASP on Changes to Registered Data	AED 1,000 for each day of delay.

Importance of Compliance

These fines are designed to enforce preparation and compliance across both technology implementation and daily transactional operations. For businesses with a large volume of transactions, the penalties for failing to issue compliant documents can quickly escalate. This makes early adoption a financial necessity.

Your Next Step to Compliance

The initial phase requires large businesses (Annual Revenue AED 50 Million) to appoint an ASP by July 31, 2026. The combination of the newly available TIN platform and the published penalties means preparation is no longer optional.

Choosing the Right Technology Partner

It's time to select your accredited technology partner. Ensure that they can help you map your ERP/accounting systems to the required PINT AE format. Begin integration testing as soon as possible to avoid penalties.

Conclusion

In conclusion, understanding the penalties associated with non-compliance is crucial for businesses. The new framework is not just a regulatory requirement; it is an opportunity for businesses to enhance their operational efficiency. By taking proactive steps now, companies can avoid costly fines and position themselves for success in the evolving digital landscape.

For more information, visit the official government website.