UAE businesses must comply with corporate tax regulations to avoid penalties. This applies to all companies operating in the UAE, including those on the mainland and in free zones. To ensure timely tax payments and avoid fines, businesses must register for corporate tax and submit returns according to the established deadlines.

Corporate Tax Penalties:

Not maintaining required records and information as per tax laws will result in penalties. These can be:

  • AED 10,000 for each individual violation.
  • AED 20,000 for repeated violations occurring within 24 months of a previous offense.

Not submitting tax data, records, and documents in Arabic to the Federal Tax Authority (FTA) upon request carries a penalty of AED 5,000. Missing tax return deadlines in the UAE can lead to financial penalties for the legal representative. These penalties increase over time:

  • For the first 12 months: AED 500 per month (or any part of a month)
  • From the 13th month onwards: AED 1,000 per month (or any part of a month)

Don’t miss out on filing your tax returns on time in the UAE. Failure to do so can result in financial penalties impacting the legal representative, starting from AED 500 per month and escalating to AED 1,000 per month after the first year.

Delaying your tax payments in the UAE comes with a hefty price tag – a monthly interest penalty of 14% per year. This penalty accrues on any outstanding balance from the day after the due date and continues to be applied each month until the payment is settled.

Here’s what you need to know:

  • Pay on time: Avoid interest charges by adhering to the designated payment deadlines.
  • Interest compounds monthly: The longer you wait, the more you owe.
  • 14% is a significant penalty: Don’t underestimate the financial impact.

Filing an inaccurate tax return in the UAE can land you a penalty of AED 500.  However, you can avoid this penalty by correcting the return before the official submission deadline. Keep track of the new UAE corporate tax law can be complex. Our team of experienced accountants and tax advisors can help you:

  • Determine your tax obligations: Whether you need to pay or qualify for exemption, we’ll guide you through the rules.
  • Set up a compliant system: Implement efficient and scalable accounting practices to manage your tax affairs smoothly.
  • Stay informed and prepared: Our specialists advise you on documents, steps, and deadlines to ensure full compliance. Don’t let tax worries slow you down. Contact us today!