FTA Penalty Calculator
Estimate your exposure under Cabinet Decision No. 75 of 2023. Late registration, late filing, and late payment interest calculated instantly.
| Late registration | AED 10,000 |
| Late filing (6 months) | AED 3,000 |
| Late payment interest (14% p.a.) | AED 2,800 |
| Total exposure | AED 15,800 |
Stop the meter. Our fines advisory team disputes and reduces FTA penalties.
How UAE Corporate Tax Penalties Add Up
UAE corporate tax penalties fall into three broad buckets, and the calculator on this page adds them together to give you a single number. The first bucket is the one-time late registration penalty of AED 10,000, set by Cabinet Decision No. 10 of 2024 and applied when a taxable person fails to register for corporate tax within the FTA's timeframe. The FTA has run a conditional waiver of this penalty for taxable persons that file their first corporate tax return within seven months of the end of their first tax period, but the conditions are strict and subject to change.
The second bucket is late filing. Under Cabinet Decision No. 75 of 2023, the FTA charges AED 500 for each month (or part month) of delay during the first twelve months after the deadline, and AED 1,000 for each month thereafter. A return filed six months late costs AED 3,000 in late filing penalties alone, before any late payment interest on tax actually due. A return filed eighteen months late costs AED 6,000 in late filing penalties on its own (12 × 500 + 6 × 1,000).
The third bucket is late payment interest on any unpaid tax. The rate is 14% per annum, applied monthly from the day after the deadline. The calculator uses a proportional tax × 14% × (months / 12) formula for planning purposes; the FTA's exact calculation is per calendar month and can vary marginally. Interest continues to accrue every month until the underlying tax is settled — filing the return alone does not stop it.
Every FTA administrative penalty can be challenged through a Reconsideration Request within 40 business days of notification, and escalated to the Tax Disputes Resolution Committee if refused. asly tax handles the full process — from eligibility read to TDRC memorandum — with legal support from the wider asly.ai network. Send us the penalty notice on WhatsApp and you'll receive an honest read within one business day.