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.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
- Return and payment due
- 30 September 2026
- Late registration penalty
- AED 0.00
- Late filing penalty
- AED 0.00
- Late payment penalty
- AED 0.00
- Total penalties
- AED 0.00
The AED 10,000 late registration penalty is waived because the first return is filed within 7 months of the period end.
Results are estimates for general information, not tailored advice.
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 and return deadline.
Legal basis
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
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.
Corporate tax registration and returns
We register you, prepare the tax computation and file your corporate tax return, with Small Business Relief, QFZP and loss elections handled correctly.