The Federal Tax Authority (FTA) has introduced strict penalties for businesses failing to comply with corporate tax regulations in the UAE. Violations such as late tax filings, incorrect submissions, and failure to maintain records can result in heavy fines.
|
Violation
|
Penalty Amount
|
|
Failure to keep tax records as required
|
AED 10,000 (first offense), AED 20,000 (repeat within
24 months)
|
|
Failure to submit tax documents in Arabic when requested
|
AED 5,000
|
|
Late submission of tax deregistration application
|
AED 1,000 per month (up to AED 10,000)
|
|
Failure to update tax records within 20 business days
|
AED 1,000 (first offense), AED 5,000 (repeat within 24
months)
|
|
Late corporate tax return submission
|
AED 500 per month (first 12 months), AED 1,000 per
month (after 12 months)
|
|
Failure to pay corporate tax on time
|
14% annual penalty on unpaid tax
|
|
Submitting an incorrect tax return
|
AED 500 fine
|
|
Failure to cooperate with a tax audit
|
AED 20,000
|
|
Late tax registration application
|
AED 10,000
|
🚨 Hefty Fines: A small mistake like missing a tax return deadline could result in thousands of dirhams in fines.
🚨 Legal Risks: Non-compliance with corporate tax laws could lead to further investigations and legal action.
🚨 Business Disruptions: Incomplete tax records can trigger a tax audit, delaying business operations and impacting reputation.
✅ Update tax records regularly – Notify the FTA of any changes within 20 business days.
✅ File tax returns on time – Avoid late submission fines.
✅ Maintain financial records – Businesses must keep records for at least 5 years.
✅ Seek professional tax assistance – Partnering with a tax expert ensures your business follows FTA regulations correctly and avoids penalties.
We offer corporate tax registration, tax record updates, and compliance services to keep your business penalty-free.
🚀 Avoid Penalties – Get Your Tax Compliance Sorted for Just AED 199!
