Dispute, Reduce or Waive Your FTA Tax Penalties

Your Options When You Receive an FTA Penalty

Four routes are available under UAE tax procedures law. The right one — sometimes a combination — depends on the type of penalty, the grounds, the amount, and how much of the 40-business-day window remains.

The Reconsideration Process

A Reconsideration Request must be filed within 40 business days of the FTA's notification of the penalty, in Arabic, with full documentary evidence, under Article 27 of Federal Decree-Law No. 28 of 2022. Missing the window generally forfeits the right to dispute the penalty administratively.

1. Step 01
   Send us the penalty notice
   Message us on WhatsApp with a copy of the EmaraTax penalty notice and the underlying tax notice. We confirm the exact 40-business-day deadline the same day.
2. Step 02
   Eligibility and grounds assessment
   Our advisors review the file against the FTA's published grounds for reconsideration and current waiver initiatives, and give you a written honest read on whether a challenge is worth filing.
3. Step 03
   Evidence pack
   We build the documentary record: correspondence, EmaraTax screenshots, financial evidence, delivery receipts, medical or force-majeure evidence, and any relevant FTA public clarifications.
4. Step 04
   Reconsideration submission
   We draft and file the Reconsideration Request in Arabic on your EmaraTax account within the 40-business-day window, and confirm receipt with the FTA.
5. Step 05
   FTA decision & follow-up
   The FTA typically responds within 40 business days. We manage FTA queries, and if the decision is unfavourable we prepare the TDRC escalation before the next 40-business-day clock expires.

Why asly tax for Penalty Disputes

asly tax is the only UAE provider that combines a modern tax filing platform with legal-grade dispute capability drawn from the wider asly.ai ecosystem and our partnership with ACME Group. Filing accountants rarely have the procedural experience to run a Reconsideration Request; law firms rarely have direct EmaraTax access or reconciled tax data. We have both.

• ·Direct EmaraTax access and reconciled Statement of Account, so evidence packs are built from primary data, not assertions.
• ·Arabic-first legal drafting from the asly.ai legal network — Reconsideration Requests and TDRC memoranda handled in the language the FTA and TDRC actually read.
• ·Continuity: the team that disputes the penalty is the team that files your future returns, so the root cause is fixed, not just the fine.

Common Penalties We Help With

We handle the full range of UAE corporate tax administrative penalties. The most common files we see are listed below — each links to the underlying rule in our complete penalty reference.

• Late registration — AED 10,000

  One-time penalty under Cabinet Decision No. 10 of 2024. Often eligible for the FTA waiver initiative when the first return is filed within 7 months of the tax period end.

• Accumulated late filing — AED 500–1,000 per month

  Compounds monthly under Cabinet Decision No. 75 of 2023. We frequently see 6–18 months of accumulated fines on dormant or overlooked entities.

• Late payment interest — 14% per annum

  Applied monthly on the unsettled corporate tax balance. Disputes usually target the underlying assessment; interest follows the outcome.

• Record-keeping — AED 10,000 (AED 20,000 repeat)

  Imposed after FTA information requests go unanswered or records cannot be produced in the required form. Strong document reconstruction is often decisive.

A Recent File (Anonymized)

Consultation or Registration Only?

If you'd rather start with a one-hour advisor session, or you just need to complete a late corporate tax registration to stop further penalties, both are available as standalone services.