Corporate Tax Penalties

Failure to Submit Corporate Tax Return on time

AED 500 for each month, or part thereof, for the first 12 months; and

AED 1,000 for each month, or part thereof, from 13th month onwards.

Failure to settle payable Corporate Tax

Monthly penalty of 14% per annum, for each month or part thereof, on unsettled payable tax amount from day following due date of payment and levied on same date monthly thereafter.

Incorrect filing of Corporate tax return.

AED 500, unless Person corrects their corporate tax return before expiry of deadline for submission tax return.

Failure to keep required records and other information.

One of following penalties: AED 10,000 for each violation.

AED 20,000 in each case of repeated violation within 24 months from last violation.

Failure to apply for Corporate tax registration on time.

AED 10,000 for late registrations.

Failure to submit a voluntary disclosure in relation to errors before being notified that it will be subject to an audit.

15% fixed penalty on the tax different

1% monthly on the tax difference from the day after the tax due date until a voluntary disclosure is submitted or a tax assessment is issued.