UAE corporate tax penalties changed on 14 April 2026, when Cabinet Decision No. 129 of 2025 came into force. Late payment is no longer compounding — it is a flat 14% a year, added monthly — several fines came down, and the registration and filing penalties carried over unchanged. This guide lists every corporate tax fine that can land on an EmaraTax account in 2026, what triggers it, and the one waiver that still exists.
The penalty table for 2026
| Violation | Penalty | Authority |
|---|---|---|
| Late corporate tax registration | AED 10,000 (flat) | Cabinet Decision No. 75 of 2023, Table, item 14 |
| Late CT return filing | AED 500 per month (or part) for the first 12 months; AED 1,000 per month from the 13th | Cabinet Decision No. 75 of 2023, Table |
| Late payment of tax | From 14 April 2026: 14% per annum, added monthly to unpaid tax (replacing the earlier 2% on the due date + 4% per month compounding) | Cabinet Decision No. 129 of 2025, in force 14 April 2026 |
| Late deregistration application | AED 1,000 per month of delay, capped at AED 10,000 | Cabinet Decision No. 75 of 2023, Table, item 3 |
| Failure to keep required records | AED 10,000 first violation; AED 50,000 for a repeat within 24 months | Cabinet Decision No. 75 of 2023, as amended |
| Failure to provide records in Arabic when requested | AED 5,000 (reduced from AED 20,000) | Cabinet Decision No. 129 of 2025 |
| Failure to notify the FTA of changes to tax records | AED 1,000 per violation; AED 5,000 for a repeat within 24 months | Cabinet Decision No. 129 of 2025 |
| Late annual declaration (exempt persons) | AED 500 per month for the first 12 months; AED 1,000 per month thereafter | Cabinet Decision No. 75 of 2023, Table |
Cabinet Decision No. 129 of 2025 was published in November 2025 and took effect on 14 April 2026; it also harmonised penalty levels across VAT, excise and corporate tax regimes so the same violation costs the same under each law.
The two penalties that catch businesses most
Late registration — AED 10,000, and it is still waivable. Every in-scope business should already be registered (FTA Decision No. 3 of 2024 set the deadlines; the last of them passed on 31 December 2024). If you registered late, the FTA waives the AED 10,000 automatically — no application — where you file your first return or annual declaration within 7 months of the end of your first tax period instead of the standard nine (FTA Public Clarification CTP006). For a 31 December 2025 year-end, that window closed on 31 July 2026. See the registration deadline guide for the licence-month table.
Late filing — AED 500 a month, and it compounds into the second year. The return is due within nine months of your financial year-end; a return that slips by six months already carries AED 3,000, and the rate doubles from month thirteen. The filing deadline table and EmaraTax walkthrough are in our corporate tax return guide.
What changed on 14 April 2026
Three practical differences:
- Late payment got simpler and cheaper for short delays. The old schedule (2% of unpaid tax on the due date, then 4% per month, capped at 300%) is replaced by a flat annualised 14%, accrued monthly — roughly 1.17% of unpaid tax per month.
- Several fines came down. Providing records in Arabic on request is AED 5,000 instead of AED 20,000; notifying the FTA of a legal representative is AED 1,000 instead of AED 10,000.
- One framework for all taxes. VAT, excise and corporate tax violations of the same kind now carry the same penalty levels, so a compliance fix built for VAT generally covers CT.
How a penalty shows up — and how to clear it
Penalties are assessed on EmaraTax, usually automatically when a deadline passes without the action. Options, in order:
- Pay and move on where the amount is small and the facts are clear.
- Apply for a waiver or reconsideration where you have a statutory excuse — the FTA accepts reconsideration requests through EmaraTax within the period the law allows.
- Fix the underlying breach first. Register, file, or deregister before applying; the FTA looks at whether the violation was remedied.
FAQs
What is the penalty for late corporate tax registration in the UAE?
AED 10,000 under Cabinet Decision No. 75 of 2023. It is waived automatically if the first tax return (or annual declaration, for exempt persons) is filed within seven months of the end of the first tax period — FTA Public Clarification CTP006.
How is late corporate tax payment penalised in 2026?
From 14 April 2026, at a flat 14% per year, added monthly to the unpaid amount, under Cabinet Decision No. 129 of 2025. Before that date, the schedule was 2% on the due date plus 4% per month, capped at 300%.
Is there a penalty for not deregistering for corporate tax?
Yes — AED 1,000 for each month of delay in submitting the deregistration application, up to AED 10,000 (Cabinet Decision No. 75 of 2023). Deregistration is due within the statutory window after a business ceases or liquidates; our liquidation cost guide covers the full closing checklist.
Keep the calendar, skip the fines
Every penalty in this table traces back to a missed date or a missing record. Finanshels runs the corporate tax calendar — registration, filing, payment and record retention — for UAE businesses, and prices filing support transparently. Book a consultation before the next deadline, not after the penalty lands.
Last reviewed: 18 October 2026, by Gautam Sanoj, Senior Tax Advisor at Finanshels. Penalty figures are date-scoped to Cabinet Decision No. 129 of 2025 (in force 14 April 2026) and Cabinet Decision No. 75 of 2023; verify current amounts on tax.gov.ae before acting.
