UAE Corporate Tax Penalties: Late Registration, Late Filing and Record-Keeping

UAE corporate tax penalties are fixed by the Federal Tax Authority (FTA) and apply per breach. Knowing which ones apply to your business is the first step to avoiding them.

Late registration

A taxable person that registers late can face a penalty of AED 10,000. A waiver may be available where the official conditions linked to the timing of the first return are met.

Late filing of the return

A late Corporate Tax return can attract AED 500 for each month or part of a month during the first 12 months, and AED 1,000 for each month or part of a month from month 13.

Late payment

Unpaid tax can attract a late-payment penalty. Under the current mechanism it is calculated at 14% per annum, applied monthly or for part of a month.

Record keeping

Weak records are a common trigger. A first record-keeping violation can attract AED 10,000, and a repeated violation within 24 months can attract AED 20,000.

Other penalties worth knowing

• \\Incorrect return:\\ a fixed AED 500 penalty, unless the error is corrected before the filing deadline under the stated conditions.
• \\Late deregistration:\\ AED 1,000 per month, up to AED 10,000.
• \\Failure to facilitate a tax audit:\\ AED 20,000.

How to reduce your exposure

1. Confirm your registration status and first tax period.
2. Reconcile the accounts before preparing the tax computation.
3. Review the return before submission, not after.
4. Keep records in a form that can be produced quickly on request.

A [Corporate Tax health check]\(/services/corporate-tax/ct-health-check) tests your position before the FTA does. If you already have a notice, start with a [penalty review]\(/services/corporate-tax/tax-penalty-review).

\Penalty amounts change with FTA decisions. Always confirm the current figures with the FTA or a qualified adviser before acting.\