Is there a grace period for UAE corporate tax filing?

No formal grace period exists. The AED 500 per month late filing penalty starts on the day after the 9-month filing deadline and continues to accrue until the return is submitted. The FTA has occasionally announced conditional waivers (for example, the late registration penalty waiver tied to filing within 7 months of the first tax period end), but those are separate initiatives with strict conditions, not a general grace period.

How do I apply for a corporate tax penalty waiver?

Submit a Reconsideration Request to the Federal Tax Authority within 40 business days of being notified of the penalty, under Article 27 of Federal Decree-Law No. 28 of 2022 on Tax Procedures. The request must be in Arabic, include documentary evidence, and cite the grounds — typically force majeure, FTA system errors, or reliance on incorrect FTA guidance. If refused, you can escalate to the Tax Disputes Resolution Committee (TDRC) within 40 business days of the FTA's decision.

Do I get a penalty for filing a nil return late?

Yes. Late filing penalties apply to every taxable person that misses the deadline, regardless of whether the return shows a profit, a loss, or zero taxable income. A dormant company that never traded still owes AED 500 for each month the return is late. This is one of the most common — and most avoidable — corporate tax penalties in the UAE.

Do corporate tax penalties affect trade licence renewal?

There is no automatic link between FTA corporate tax penalties and trade licence renewal at the licensing authorities (DED, free zone authorities). However, unpaid FTA liabilities appear on your EmaraTax profile, can block certain FTA-issued clearances, and are increasingly flagged by banks during KYC reviews. Free zone authorities may also request an FTA good-standing confirmation on renewal.

Can I pay a corporate tax penalty in installments?

The FTA offers an installment payment plan for administrative penalties above AED 50,000, subject to formal application and approval. The taxpayer must show inability to pay in a lump sum, provide financial evidence, and typically post security. Installment plans do not stop late payment interest on any underlying unpaid tax — only on the penalty balance covered by the approved plan.

How do I check my corporate tax penalties on EmaraTax?

Log in to EmaraTax, open the corporate tax taxable person profile, and go to My Correspondences and My Payments. Every penalty appears as a separate line item with the violation reference, the amount, the date imposed, and the associated tax period. You can also download a full Statement of Account (SOA) reconciling every debit, credit, and outstanding balance.

What is Cabinet Decision No. 75 of 2023?

Cabinet Decision No. 75 of 2023 sets the schedule of administrative penalties for violations of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. It defines every corporate tax penalty amount, the trigger conditions, and the escalation rules for repeat offences. It came into effect on 1 August 2023 and remains the primary reference for UAE corporate tax fines in 2026.

Reference · Penalties

UAE Corporate Tax Penalties and Fines: The Complete 2026 List

Last updated: January 2026

UAE corporate tax penalties under Cabinet Decision No. 75 of 2023 range from AED 500 per month for late filing to AED 20,000 for repeated record-keeping failures. Late registration with the Federal Tax Authority carries a one-time AED 10,000 penalty, and late payment of tax accrues 14% per annum on the unsettled balance, calculated monthly. This page lists every corporate tax fine in force in 2026, with legal basis.

Reviewed by Carl Bayley, FCA, BSc · Updated 2026-01-15

01 — Reference

Complete UAE Corporate Tax Penalty Table

The table below lists every administrative penalty currently applied to UAE corporate tax under Cabinet Decision No. 75 of 2023 (and, for late registration, Cabinet Decision No. 10 of 2024). Figures are the amounts published by the Federal Tax Authority and may be updated by further Cabinet Decisions.

Violation	Penalty	Legal basis
Failure to register for corporate tax within the FTA timeframe	AED 10,000 (one-time)	Cabinet Decision No. 10 of 2024
Late filing of the corporate tax return (months 1–12)	AED 500 per month	Cabinet Decision No. 75 of 2023
Late filing of the corporate tax return (from month 13 onward)	AED 1,000 per month	Cabinet Decision No. 75 of 2023
Late payment of corporate tax due	14% per annum on the unsettled amount, applied monthly from the day after the deadline	Cabinet Decision No. 75 of 2023
Failure to keep required records and information	AED 10,000 first offence; AED 20,000 if repeated within 24 months	Cabinet Decision No. 75 of 2023
Failure to submit records or information in Arabic when requested by the FTA	AED 5,000	Cabinet Decision No. 75 of 2023
Failure to notify the FTA of a case requiring amendment of tax record	AED 1,000 first offence; AED 5,000 if repeated within 24 months	Cabinet Decision No. 75 of 2023
Submitting an incorrect corporate tax return	AED 500, unless corrected before the filing deadline	Cabinet Decision No. 75 of 2023
Failure to submit a declaration (exempt persons, QFZP annual declaration)	AED 500 per month for the first 12 months, AED 1,000 per month thereafter	Cabinet Decision No. 75 of 2023
Voluntary disclosure submitted after FTA notification of audit	15% of the tax difference plus monthly penalties from the original return date	Cabinet Decision No. 75 of 2023
Voluntary disclosure submitted before FTA notification of audit	1% per month of the tax difference, calculated from the return date to the disclosure date	Cabinet Decision No. 75 of 2023
Failure to facilitate the work of a Tax Auditor	AED 20,000	Cabinet Decision No. 75 of 2023
Failure to deregister for corporate tax within the required timeframe	AED 1,000 per month, capped at AED 10,000	Cabinet Decision No. 75 of 2023

Amounts follow Cabinet Decision No. 75 of 2023 as amended, and subsequent FTA public clarifications. Always confirm the current figure on EmaraTax or with a qualified tax adviser before relying on it.

02 — Example

How Late Filing Penalties Add Up

Late filing penalties compound monthly, and each partial month counts as a full month. A company that files six months late owes 6 × AED 500 = AED 3,000 in late filing penalties alone, before any late payment interest on tax actually due.

Worked example

Return due: 30 September 2026
Actually filed: 30 March 2027 (6 months late)
Tax owed: AED 40,000
Late filing penalty: 6 × AED 500 = AED 3,000
Late payment interest: AED 40,000 × 14% × 6/12 = AED 2,800
Total added cost: AED 5,800 on top of the AED 40,000 tax.

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Already past your deadline? See what to do if you missed a filing deadline. Filed a return with an error? See our voluntary disclosure guide.

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03 — Waivers

Can Corporate Tax Penalties Be Waived?

Yes, in defined cases. The Federal Tax Authority does not offer general amnesty, but three routes can reduce or remove a corporate tax penalty: a Reconsideration Request, published waiver initiatives, and escalation to the Tax Disputes Resolution Committee.

Reconsideration Request
Filed within 40 business days of notification. The FTA reviews the penalty on grounds such as force majeure, portal errors, or reliance on incorrect published guidance.
Late registration waiver initiative
The FTA has waived the AED 10,000 late registration penalty for taxable persons that file their first return within 7 months of the end of their first tax period. Conditions are set by the FTA and may change.
TDRC escalation
If the Reconsideration Request is rejected, the taxpayer has 40 business days to escalate to the Tax Disputes Resolution Committee (TDRC), and from there to the Federal Courts.

See our penalty dispute service →

04 — Payment

How to Pay a Corporate Tax Penalty on EmaraTax

Penalties are settled through the same EmaraTax portal used for filing. Payment must reach the FTA on or before the due date on the payment notice to avoid additional interest.

01Log in to EmaraTax at eservices.tax.gov.ae with your registered account.
02Open the taxable person profile and go to My Payments → Outstanding Liabilities.
03Select the corporate tax penalty line item you want to settle.
04Pay via GIBAN bank transfer, magnati (card), or direct debit; GIBAN clears in 1–2 business days.
05Download the payment receipt and reconciled statement of account for your records.

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