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The estimator above shows the fixed administrative penalties the FTA sets for common failures. They come from Cabinet Decision No. 40 as amended, with the table in force from , and Cabinet Decision No. 75 for corporate tax. Source: Ministry of Finance consolidated decisions, checked .
Common penalties at a glance
| Failure | Penalty |
|---|---|
| Late registration application | AED 10,000 |
| Late VAT return | AED 1,000, then AED 2,000 if repeated within 24 months |
| Not keeping records | AED 10,000, then AED 20,000 if repeated within 24 months |
| Incorrect return | AED 500, not charged if corrected before the deadline |
| Not updating tax record details | AED 1,000, then AED 5,000 if repeated within 24 months |
| Not issuing a tax invoice | AED 2,500 per case |
| Not helping the tax auditor | AED 20,000 |
Corporate tax late return
Under Cabinet Decision No. 75, a registrant that files a corporate tax return late pays AED 500 for each month or part of a month in the first 12 months and AED 1,000 for each month or part from the 13th month. The estimator adds this up from the months you enter. Whether this table was changed in the April amendment is not confirmed in the sources we read, so check the current decision.
Late registration waiver
The AED 10,000 corporate tax late registration penalty is waived if the first return, or annual declaration, is filed within 7 months of the end of the first tax period. Read the cases on corporate tax penalties.
How to read a penalty
A penalty is a charge for a failure, not a tax. The FTA applies it to the registered person, and most of the fixed amounts above can be challenged through the reconsideration process if you think the FTA got it wrong. The amount rises when the same failure repeats within 24 months, which is why the list shows both figures for records, late returns and tax record updates.
Keep the paperwork that proves you filed on time: the EmaraTax submission receipt, the payment confirmation and the date stamps. They are the evidence if the FTA says you were late.
What the estimator does not cover
- Late payment, charged at 14% a year, for each month or part of a month, on the unpaid amount.
- Voluntary disclosure, charged at 1% a month on the tax difference.
- E-invoicing penalties, set by a separate Cabinet Decision. See e-invoicing.
For VAT-specific penalties, read VAT penalties. If you have already missed a date, ask listed firms for help with the quote form below.
