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For late filing of UAE Corporate Tax, the Federal Tax Authority charges a fine of AED 500 for first 12 months, and then on AED 1000. The other Corporate Tax Filing Penalties vary from an amount of AED 500 to AED 20,000. These are mentioned below.
The UAE's tax structure has undergone substantial changes in recent years, especially with the implementation of corporate tax. To avoid harsh fines and penalties, businesses operating in the UAE must file their corporate tax. This blog addresses the corporate tax filing fines and penalties in the UAE.
Corporate tax filing involves businesses reporting their income, expenses, and deductions to calculate the tax owed to the government. The process typically requires accurate financial records and reverence to tax regulations. Businesses must file annual tax returns, disclose their financial activity, and pay the taxes they owe by the deadline. Failure to comply may result in fines or penalties.
Businesses must file taxes on time and accurately in order to be in compliance with corporate tax rules and regulations. It prevents penalties, interest, and any other legal consequences.
Corporations and businesses in the UAE must follow the Corporate Tax Law and Tax Procedures Law. Non-compliance might lead to severe administrative penalties. Here's an extensive table describing the violations and their respective CT Filing Penalties:
Table of Violations and Administrative Penalties on the Taxation of Corporations and Businesses
| No. | Description of Violation | Administrative Penalty Amount in AED |
| 1 | Failure to keep required records and other information specified in the Tax Procedures Law and Corporate Tax Law. | 10,000 for each violation; 20,000 for repeated violations within 24 months. |
| 2 | Failure to submit tax-related data, records, and documents in Arabic to the Authority when requested. | 5,000 |
| 3 | Failing to submit a deregistration application in the allowed period. | 1,000 monthly, up to 10,000 |
| 4 | Failure to inform the Authority of changes requiring amendment of tax record information. | 1,000 for each violation; 5,000 for repeated violations within 24 months. |
| 5 | Failure of the Legal Representative to notify the Authority of their appointment within the specified timeframes. | 1,000 |
| 6 | Failure of the Legal Representative to file a Tax Return within the specified timeframes. | 500 monthly for the first 12 months; 1,000 monthly thereafter. |
| 7 | Failure of the Registrant to submit a Tax Return within the specified timeframe. | 500 monthly for the first 12 months; 1,000 monthly thereafter. |
| 8 | Failure to settle the Payable Tax. | 14% per annum on the unsettled amount, calculated monthly. |
| 9 | Submission of an incorrect Tax Return. | 500, unless corrected before the deadline. |
| 10 | Submission of a Voluntary Disclosure for errors in the Tax Return or Tax Assessment. | 1% monthly on the Tax Difference, from the due date until the disclosure is submitted. |
| 11 | Failure to submit a Voluntary Disclosure for errors before notification of a Tax Audit. | 15% fixed penalty on the Tax Difference; 1% monthly on the Tax Difference. |
| 12 | Failure to facilitate the Tax Auditor during a Tax Audit. | 20,000 |
| 13 | Late submission or failure to submit a Declaration to the Authority. | 500 monthly for the first 12 months; 1,000 monthly thereafter. |
Before you begin, ensure you have the following:
Visit the FTA Website
Login to Your Account
3. Navigate to the Penalties Section
1. Access the Dashboard
2. Find the ‘My Penalties’ Section
3. Review Penalty Details
Click on the ‘My Penalties’ section to view details of any fines imposed on your company. This section will provide information on:
1. Download the FTA App
2. Login to the App
3. Access the Penalties Section
Customer Service
Professional Assistance
1. Paying the Fine
2. File an Appeal
3. Correcting Filing Errors
1.Timely Filing and Payments
2. Regular Compliance Checks
3. Professional Tax Consultants
By following these steps, you can efficiently check and manage any corporate tax fines in the UAE.
Here are some strategies to avoid Corporate Tax Filing Fines and Penalties in UAE. Following these guidelines will help you stay compliant and adhere to UAE corporate tax regulations.
Reyson Badger stands out as a trustworthy advisor for businesses looking to file corporate tax in UAE and avoid penalties. Our team of specialists provides a wide range of services, including timely and accurate filing, accounting, record-keeping, and rigorous evaluation to ensure completeness and correctness. We help you stay compliant and avoid hefty fines by drawing on our thorough understanding of Corporate Tax Regulations. Partner with Reyson Badger to streamline your company's tax procedures so you can focus on what you do best: growing your business.