Corporate Tax Fines and Penalties in UAE

FTA has announced corporate tax fines and penalties in UAE. Corporate tax fines will be imposed who do not comply with corporate tax law from August 1.

Businesses in the UAE must adhere to the corporate tax laws to avoid corporate tax fines and penalties in UAE. All the companies in UAE including mainland and free zone companies must apply for the corporate tax registration and make timely payments in order to avoid UAE corporate tax fines. 

Corporate Tax Penalties

1. Late Corporate Tax Registration fine.

AED 10,000

2. Late Corporate Tax Deregistration fine.

Late submission incurs AED 1,000 penalty, increasing by AED 1,000 monthly, up to a maximum of AED 10,000.

3. Penalties apply if records and information required by the corporate tax law are not kept up to date.

One of these shall apply

• AED 10,000 for each infraction.
• AED 20,000 for repeated offenses committed within 24 months of the past violation.

4. Late Corporate Tax Return Submission fine.

• AED 500 per month (or part thereof) for the first twelve months.
• AED 1,000 per month (or part thereof) from the thirteenth month onwards, starting from the day after the Tax.

5. Unsettled Payable Corporate Tax Fine.

• 14% per annum on unsettled Payable Tax, applied monthly from the day after the due date of payment.
• Due date of payment for Voluntary Disclosure: 20 Business Days from submission. For Tax Assessment: 20 Business Days from receipt.

6. Incorrect Corporate Tax Return submission.

AED 500, unless the Person corrects the Tax Return before the submission deadline as per Corporate Tax Law.

7. Late submission of a Corporate Tax Declaration to the Authority.

• First 12 months: AED 500 per month.
• From the thirteenth month onwards: AED 1,000 per month.

8. Not submitting tax-related data, records, and documents in Arabic to the Authority when requested.

AED 5,000

10. Not facilitating the Tax Auditor during a Tax Audit.

AED 20,000

How to avoid corporate tax fines and penalties in UAE?

It’s important for businesses and corporations subject to the corporate tax law to ensure compliance with the regulations and requirements to avoid incurring these administrative penalties. 

Staying informed about updates and changes to tax laws and regulations is crucial for businesses to maintain their financial health and legal standing. If you have specific questions or concerns about the corporate tax penalties in UAE, Contact us.

Corporate Tax Services in UAE

Xact Auditing is one of the best accounting and audit firm in UAE. We are offering best and timely corporate tax services in UAE. Our expertise helps clients stay compliant with corporate tax laws and remain informed about any corporate tax developments.

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