Corporate Tax Penalties in UAE: Complete 2026 Compliance Guide
UAE's corporate tax system, introduced in 2023, now enforces strict penalties to promote compliance among businesses. As of March 2026, the Federal Tax Authority (FTA) oversees these rules under updated Cabinet Decisions like No. 10/2024 and No. 75/2023, ensuring timely registration, filing, and payments. Overview of Penalties Penalties target common errors like late actions or incorrect data. Late registration carries a flat AED 10,000 fine, applied once per business. Filing delays start at AED 500 monthly for the first year, then rise to AED 1,000. Unpaid taxes face 14% yearly interest from the due date. Detailed Penalty Breakdown Here is a clear table of major violations and fines: Violation Type Penalty Amount/Details When It Applies Late Registration AED 10,000 (one-time) After 3 months from incorporation Late Tax Return AED 500/month (up to 12 months); AED 1,000 ...