Amending a UAE corporate tax return is free to file and expensive to get wrong. There is no FTA fee for submitting a voluntary disclosure — the cost is the penalty structure it triggers: 1% per month on the tax difference when you correct before an audit notification, and 15% fixed plus 1% monthly when the correction lands after the Authority has told you it will audit. The earlier the disclosure, the smaller the penalty clock.
TL;DR
- No FTA fee applies to filing a corporate tax voluntary disclosure.
- 1% per month on the tax difference applies to a voluntary disclosure filed before any audit notification.
- 15% fixed plus 1% monthly applies where disclosure follows an audit notification.
- The 1% clock runs from the day after the return's due date until the disclosure is submitted.
- An incorrect return draws AED 500 unless corrected before the deadline — the disclosure itself must be accurate.
What filing the amendment actually costs
The voluntary disclosure form itself is free on EmaraTax, and the FTA does not charge a fee to correct a return. The cost comes from the penalty table in Cabinet Decision No. 75 of 2023, as amended — the instrument that sets administrative penalties for violations of Federal Decree-Law No. 47 of 2022 (the Corporate Tax Law):
- Before any audit notification: a monthly penalty of 1% on the Tax Difference, for each month or part thereof, from the day after the return's due date until the disclosure is submitted.
- After audit notification: a fixed penalty of 15% on the Tax Difference plus a monthly penalty of 1% on the Tax Difference from the day following the due date of the relevant return.
The Tax Difference is the gap between the tax you paid and the tax you should have paid — an amendment that changes nothing financially triggers no penalty.
Full cost breakdown
| Cost item | When it applies | Amount | Source |
|---|---|---|---|
| Voluntary disclosure filing | Always | AED 0 | FTA — free on EmaraTax |
| Pre-audit disclosure penalty | 1% per month on the Tax Difference from the day after the due date | Varies with the delay | CD 75/2023, item 11 of Table 1 |
| Post-audit-notification disclosure penalty | 15% fixed + 1% monthly on the Tax Difference | Varies with the delay | CD 75/2023, item 12 |
| Recomputation and documentation work | Before submission | Staff or adviser time | Transfer-pricing and evidence standards |
| Professional agent fees | Optional | Varies by provider | No official tariff |
A worked example: a company discovers in November 2026 that its 2025 return underreported taxable income, with a tax difference of AED 100,000 and no audit notification in sight. The 2025 return was due 30 September 2026, so the 1% clock has run one full month plus part of a second — roughly AED 2,000, on top of settling the AED 100,000 itself. The same disclosure after an audit notification would carry a fixed AED 15,000 on top.
How the two disclosure tracks differ
Cabinet Decision No. 75 of 2023, as amended, sets two penalty tracks for voluntary disclosures under Article 10 of the Tax Procedures Law:
- Disclosure before any audit notification — a monthly penalty of 1% on the Tax Difference, for each month or part thereof, counted from the day after the return's due date until the disclosure is submitted.
- Disclosure after an audit notification — a fixed penalty of 15% on the Tax Difference plus the same 1% monthly penalty, counted from the day following the due date of the relevant return.
The Tax Difference is the gap between the tax you paid and the tax you should have paid — an amendment that changes nothing financially triggers no penalty. The rule the table creates is simple: delay is charged at 1% per month either way, and the fixed 15% is the price of letting the FTA notify an audit first. A company that discovers an error should not wait for the FTA to find it.
What actually drives the cost up
- Delay. The 1% monthly clock starts the day after the original due date, not the day you discover the error. Two years of delay on a AED 100,000 difference is AED 24,000.
- Audit notification first. The 15% fixed penalty is the price of letting the FTA find the error. The law does not forgive it because the disclosure followed immediately.
- Bad recomputation. A disclosure that is itself wrong draws the separate incorrect-return penalty — AED 500 unless the return is corrected before the deadline — so the corrected figure must be defensible.
Questions companies ask before amending
Does the FTA charge a fee to amend a corporate tax return?
No. The voluntary disclosure is free to file on EmaraTax; the costs are the penalty structure and the recomputation work.
What is the penalty for a voluntary corporate tax disclosure?
1% per month on the tax difference where the disclosure precedes any audit notification; 15% fixed plus 1% monthly where it follows one — under Cabinet Decision No. 75 of 2023, as amended.
When should a company disclose rather than wait?
Immediately on discovery, and before any audit notification: the 1% clock runs regardless, and waiting past a notification adds the fixed 15%.
FAQ
How much does it cost to amend a corporate tax return in the UAE?
The voluntary disclosure itself is free. Costs are the penalty structure: 1% per month on the tax difference pre-audit-notification, or 15% fixed plus 1% monthly after notification, under CD 75/2023 as amended.
Is there a fee for voluntary disclosure in the UAE?
No FTA fee applies to filing; the penalties depend on timing relative to audit notification.
What is the tax difference in a voluntary disclosure?
The gap between the tax paid and the tax that should have been paid. A disclosure with no financial effect draws no penalty.
When does the 1% monthly penalty start?
From the day after the original return's due date, running until the disclosure is submitted.
One last thing
The amendment itself costs nothing; the calendar costs everything. A company that finds an error should recompute the difference, file the disclosure in the same month it discovers the problem, and keep the fixed 15% off the bill by never letting an audit notification arrive first. Talk to Finanshels — Finanshels is an FTA Registered Tax Agency handling corporate tax disclosures and corrections across the UAE.
