# UAE corporate tax penalty calculator

> UAE corporate tax penalties are AED 10,000 for late registration (waived if the first return is filed within 7 months of the period end), AED 500 for each month a return is late for the first 12 months then AED 1,000 a month, and 14% a year on unpaid tax, charged monthly. Returns and payment are due 9 months after the end of the tax period.

Interactive calculator: https://www.countify.ae/tools/corporate-tax-penalty-calculator · Updated 2026-10-14 · Countify UAE

## Penalties for a 31 December 2025 year end

Registered late, first tax period, no tax unpaid.

| Return filed | Late registration penalty | Late filing penalty | Total penalties |
| --- | --- | --- | --- |
| 20 Jul 2026 | AED 0.00 | AED 0.00 | AED 0.00 |
| 30 Sep 2026 | AED 10,000.00 | AED 0.00 | AED 10,000.00 |
| 15 Dec 2026 | AED 10,000.00 | AED 1,500.00 | AED 11,500.00 |
| 31 Dec 2027 | AED 10,000.00 | AED 10,000.00 | AED 20,000.00 |

Filing within 7 months (by 31 July 2026) also cancels the registration penalty.

## The main penalties

Cabinet Decision No. 75 of 2023 sets the corporate tax penalties. The three that most SMEs face are:

- Late registration: AED 10,000 (one-off)
- Late return: AED 500 a month or part month for the first 12 months, AED 1,000 a month after that
- Late payment: 14% a year on the unpaid tax, for each month or part month

## The late registration waiver

The FTA waives (or refunds) the AED 10,000 late registration penalty if the business files its first tax return or annual declaration within 7 months of the end of its first tax period. For a 31 December 2025 year end, that means filing by 31 July 2026, two months before the normal deadline. Check your [registration deadline](https://www.countify.ae/tools/corporate-tax-registration-deadline) and [return deadline](https://www.countify.ae/tools/tax-deadline-checker).

## Legal basis

- Cabinet Decision No. 75 of 2023 on administrative penalties for corporate tax (https://mof.gov.ae/corporate-tax/)

## Frequently asked questions

### What is the penalty for filing a corporate tax return late?

AED 500 for each month or part month for the first 12 months, then AED 1,000 a month.

### Can the AED 10,000 registration penalty be waived?

Yes, if you file your first return within 7 months of the end of your first tax period.

### Is there a penalty if I have no tax to pay?

The late filing penalty applies even if no tax is due, for example under Small Business Relief.