Corporate Tax Late Filing Penalty in UAE

If you file your UAE corporate tax return late, you’ll face monthly penalties starting from AED 500, increasing to AED 1,000 per month after the first year. There’s also a one-time AED 10,000 penalty for late registration—but it can be waived if you meet certain conditions.

Penalties in Details

1. Late Filing of Corporate Tax Return

Penalty:

• AED 500 per month (or part of a month) for the first 12 months
• AED 1,000 per month (or part of a month) from the 13th month onward

Starts the day after the filing deadline passes.

2. Late Submission of Annual Declaration (for exempt entities)

Same penalty applies:

• AED 500/month up to 12 months
• AED 1,000/month from month 13

3. Late Corporate Tax Registration

Standard penalty: AED 10,000
But: This can be waived or refunded if:

• You file your tax return or annual declaration within 7 months of your first tax period end date, using the FTA’s EmaraTax portal
• Applies only to the first tax period
• If already paid, the amount is credited to your EmaraTax account

Examples:

• Tax period: Jan–Dec 2024 → Deadline for waiver: July 31, 2025

4. Other Related Penalties

• Incorrect return not corrected: AED 500
• Failure to maintain records: AED 10,000 (or AED 20,000 if repeated)
• Not submitting records in Arabic: AED 5,000
• Failure to deregister: AED 1,000 per month (max AED 10,000)

Summary Table

Are late filing penalties allowable for corporation tax?

No, late filing penalties are not allowable deductions for UAE Corporate Tax purposes.

According to Article 28 of Federal Decree-Law No. 47 of 2022 (UAE Corporate Tax Law), administrative penalties, fines, and sanctions imposed for violations of the law (including tax laws) are not deductible when calculating taxable income.

This includes:

• Late filing penalties
• Late payment fines
• Late registration penalties
• Penalties for incorrect tax returns
• Any other FTA-imposed fines

What is the maximum late filing penalty in UAE?

The maximum late filing penalty for corporate tax returns in the UAE is AED 500 per month (or part of a month) for the first 12 months after the deadline, then increases to AED 1,000 per month from the 13th month onward. There’s no absolute cap—the longer you delay, the more it adds up. This penalty continues until the return is filed.

This late filing penalty is separate from other fines, like the AED 10,000 late registration penalty or interest on unpaid tax.

Resources:
(1) Cabinet Decision No. 75 of 2023, Article 3(1)
(2) Shuraa Tax – UAE Corporate Tax Penalty and Fines
(3) Al Aan – Corporate Tax Return Filing UAE Deadline

Read more:

• The Ultimate Guide to Corporate Tax Filing in UAE (2025 Edition)