Corporate Tax Fines & Penalties in UAE: The Complete 2026 List
UAE corporate tax penalties are administrative, automatic, and cumulative — they don't wait for an audit to find you. Set principally under Cabinet Decision No. 75 of 2023 (as amended), they attach to specific failures: registering late, filing late, paying late, keeping poor records. Here is the practical list every business owner should know, and how to reduce penalties you've already received.
The Main Corporate Tax Penalties
| Violation | Penalty |
|---|---|
| Late corporate tax registration | AED 10,000 |
| Late filing of the tax return | AED 500 per month (or part) for the first 12 months, then AED 1,000 per month |
| Late payment of tax due | 14% per annum, applied monthly on the unpaid amount |
| Failure to keep required records | AED 10,000 (AED 20,000 for repeat within 24 months) |
| Failure to submit data/records in Arabic when requested | AED 5,000 |
| Late deregistration application | AED 1,000 per month, capped at AED 10,000 |
| Incorrect tax return (uncorrected) | AED 500, unless corrected before the deadline |
| Voluntary disclosure of errors | 1% per month on the tax difference (timing-based); higher (15% + monthly) if the FTA notifies audit first |
Amounts reflect the penalty framework as at July 2026; always confirm current figures before relying on them.
How Penalties Stack — a Real-World Example
A company that never registered, whose 2025 return was due 30 September 2026, arrives in January 2027: AED 10,000 (late registration) + 4 months late filing (AED 2,000) + 14% p.a. on unpaid tax + records penalties if books are inadequate. What began as one missed step compounds into five figures before any tax is even assessed. The pattern to remember: every corporate tax penalty is cheaper the earlier you act.
Can Corporate Tax Penalties Be Reduced or Waived?
Yes, in defined circumstances. The routes: a reconsideration request to the FTA within 40 business days of the penalty, with reasoned legal grounds; waiver/instalment applications where the law's conditions are met (e.g., circumstances beyond your control); and — most powerfully — voluntary disclosure before the FTA contacts you, which keeps percentage penalties at the lowest tier. The FTA has also operated targeted initiatives waiving late-registration penalties for businesses that filed within set windows — worth checking your eligibility rather than assuming the AED 10,000 is final.
How to Stay Penalty-Free
Three habits cover almost everything: register everything on time (entities and natural persons over AED 1M turnover), maintain reconciled books all year rather than at year end — our bookkeeping service exists for exactly this — and file early via a proper corporate tax filing process so errors surface while they're still correctable for free.
Already holding a penalty notice? Send it to us — we'll assess reconsideration prospects honestly and quote a fixed fee for the challenge.
Challenge a Penalty | Call or WhatsApp: +971 52 406 3000