UAE Corporate Tax Penalties: A Complete Guide

By Shihabudeen Pattasseri, FTA-Registered Tax Agent (TAAN 20056925) · Updated 2026-11-03

Corporate Tax penalties are administrative, automatic and avoidable. Knowing where they apply is the easiest way to make sure you never pay one. Here are the main ones and how to stay on the right side of them.

Late registration

Failing to register for Corporate Tax by your deadline carries a penalty of AED 10,000. This is the most common penalty, and the easiest to avoid by confirming your deadline early.

Late filing and late payment

Filing your Corporate Tax return late, or paying tax late, triggers separate penalties that increase the longer they remain outstanding. The return and payment are both due within nine months of your financial year end.

Record-keeping and accuracy

• Not keeping the required records and documents
• Submitting an incorrect return without a voluntary disclosure
• Not providing information the FTA requests in time

How to avoid or reduce penalties

• Register and file on time, every time
• Use a voluntary disclosure to correct errors before the FTA finds them
• Keep records for the required period and produce them promptly
• Apply for penalty reconsideration where you have a reasonable case

If a penalty has already been applied, a reconsideration request supported by evidence can sometimes reduce or cancel it. A tax agent can assess whether a request is likely to succeed before you file.

Frequently asked questions

What is the penalty for late Corporate Tax registration?

AED 10,000.

Can Corporate Tax penalties be reduced?

Sometimes, through a reconsideration request supported by evidence, or by correcting errors via a voluntary disclosure before the FTA finds them.

When is the Corporate Tax return due?

Within nine months of the end of your financial year, with payment due by the same date.

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