The maximum penalties for drivers swearing has been reduced by 50% while stewards will also be given more discretion on deciding penalties, the FIA said on Wednesday.
Competitors in Formula 1 and rallying have been at loggerheads with FIA President Mohammed Ben Sulayem over a crackdown on bad language during events.
Ben Sulayem said last month that he was considering "improvements" to rules.
World championship rally drivers had made a breakthrough in April when they reached a compromise to divide events into a controlled zone and an uncontrolled one, with the change now being implemented across all events sanctioned by the FIA.
The FIA said the base maximum penalty has been reduced from €10,000 ($11,214) to €5,000 while stewards will have the option to fully suspend a penalty if it is the first offence by a driver or a team.
Moreover, stewards will be able to differentiate between "controlled and non-controlled environments."
Controlled environments include news conferences while tracks or rally stages are uncontrolled environments.
"As a former rally driver, I know firsthand the range of emotions that are faced during competition," said Ben Sulayem, who is up for re-election at the end of the year.
"I have led an extensive and collaborative review with contributions from across the seven FIA World Championships, FIA Member Clubs and other motor sports organisations.
"The improvements the FIA has announced today to Appendix B will ensure we continue to promote the best of sportsmanship in motor sport, while also giving stewards effective guidelines to act against individuals who may bring the sport into disrepute.
Appendix B covers stewards' penalty guidelines, setting out punishments for misconduct including words, deeds or writings that might have caused moral injury to the FIA or motorsport in general.
Mitigating circumstances will also be considered while the abuse of officials will now result in sporting penalties instead of fines.
F1 stewards chair Garry Connelly said the new changes would give stewards guidance to "differentiate between on and off-track issues".
"Drivers are looked up to as role models by young fans and are rightly seen as ambassadors for the wider world of motor sport," said drivers' committee president Ronan Morgan.
"How they act really does matter but it is important to recognise that there is a difference between what is said during a race and in a press conference."
Last season, Red Bull's triple world champion Max Verstappen was punished for his language in a news conference at the Singapore Grand Prix in September.
Meanwhile, Ferrari's Charles Leclerc was fined €10,000 for swearing at the Mexico City Grand Prix.