UAE Corporate Tax
UAE Corporate Tax Penalties and Late-Registration Waiver
Review key UAE Corporate Tax penalties for late registration, late returns, unpaid tax and incorrect returns, plus the published waiver conditions.
Reviewed against official UAE sources ·
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What is the penalty for late UAE Corporate Tax registration?
Key published Corporate Tax penalties include AED 10,000 for late registration, AED 500 per month or part-month for a late return during the first 12 months and AED 1,000 per month from month 13. Unpaid Corporate Tax can attract a monthly penalty calculated at 14% per annum. Penalties depend on the specific violation and current legislation.
Subject to the FTA’s published conditional waiver initiative.
For the first 12 months, then AED 1,000 per month or part-month from month 13.
Calculated monthly on the unpaid amount from the day after the payment deadline.
Late registration and the waiver initiative
The published late-registration penalty is AED 10,000. The FTA waiver initiative can remove or refund it where the qualifying person submits the first return within seven months after the first Tax Period, or the relevant annual declaration within seven months after the first financial year.
- Register promptly even if the original deadline has passed.
- Identify the end date of the first Tax Period.
- Prepare the first return early enough to meet the seven-month waiver condition.
- Retain evidence of submission and review the credit in the EmaraTax account.
Late return and late-payment penalties
A late Corporate Tax Return can attract AED 500 for each month or part of a month during the first 12 months, increasing to AED 1,000 from the thirteenth month. Unpaid Corporate Tax can attract a monthly penalty at 14% per annum on the unsettled amount.
- A part-month can count as a month for the late-return penalty.
- The payment deadline generally aligns with the return deadline.
- File an accurate return even where the business expects no tax payable.
- Resolve payment allocation or EmaraTax issues before the due date.
Incorrect returns and penalty control
An incorrect Tax Return can attract an administrative penalty, while voluntary-disclosure and tax-assessment rules can create additional exposure. The safest response is to establish the facts, quantify the difference and use the correct correction route rather than silently changing later records.
- Reconcile the return to final accounts and supporting schedules.
- Document elections, reliefs, deductions and related-party positions.
- Escalate a discovered error before submitting another period.
- Check the current Cabinet Decisions and FTA guidance for the exact violation.
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Common questions
What is the penalty for late UAE Corporate Tax registration?
The FTA currently publishes an AED 10,000 administrative penalty for late Corporate Tax registration, subject to its conditional waiver initiative.
What is the penalty for filing a Corporate Tax Return late?
The published penalty is AED 500 for each month or part-month during the first 12 months, increasing to AED 1,000 for each month or part-month from the thirteenth month.
What happens if Corporate Tax is paid late?
Unsettled Corporate Tax can attract a monthly penalty calculated at 14% per annum on the unpaid amount from the day after the due date, under the published penalties decision.
How can the late-registration penalty be waived?
The FTA initiative can waive the AED 10,000 penalty when its conditions are met, including submitting the first return within seven months after the first Tax Period, or the relevant annual declaration within seven months after the first financial year.
Official sources
These primary UAE sources support the figures and rules summarised above. Review the source and any later amendment before acting.