Corporate Tax Filing Penalties & Violations
Corporations and businesses in the UAE must follow the Corporate Tax Law and Tax Procedures Law. Non-compliance might lead to severe administrative penalties. Here’s an extensive table describing the violations and their respective CT Filing Penalties:
Table of Violations and Administrative Penalties on the Taxation of Corporations and Businesses
| No. | Violation Details | Penalty Charge in AED |
| 1 | Failure to keep required records and other information specified in the Tax Procedures Law and Corporate Tax Law. | 10,000 for each violation; and 20,000 for repeated violations within 24 months. |
| 2 | Failure to submit tax-related data, records, and documents in Arabic to the Authority when requested. | 5,000 |
| 3 | Failing to submit a deregistration application in the allowed period. | 1,000 monthly, up to 10,000 |
| 4 | Failure to inform the Authority of changes requiring amendment of tax record information. | 1,000 for each violation; 5,000 for repeated violations within 24 months. |
| 5 | Failure of the Legal Representative to notify the Authority of their appointment within the specified timeframes. | 1,000 |
| 6 | Failure of the Legal Representative to file a Tax Return within the specified timeframes. | 500 monthly for the first 12 months; and 1,000 monthly thereafter. |
| 7 | Failure of the Registrant to submit a Tax Return within the specified timeframe. | 500 monthly for the first 12 months; and 1,000 monthly thereafter. |
| 8 | Failure to settle the Payable Tax. | 14% per annum on the unsettled amount, calculated monthly. |
| 9 | Submission of an incorrect Tax Return. | 500, unless corrected before the deadline. |
| 10 | Submission of a Voluntary Disclosure for errors in the Tax Return or Tax Assessment. | 1% monthly on the Tax Difference, from the due date until the disclosure is submitted. |
| 11 | Failure to submit a Voluntary Disclosure for errors before notification of a Tax Audit. | 15% fixed penalty on the Tax Difference; 1% monthly on the Tax Difference. |
| 12 | Failure to facilitate the Tax Auditor during a Tax Audit. | 20,000 |
| 13 | Late submission or failure to submit a Declaration to the Authority. | 500 monthly for the first 12 months; 1,000 monthly thereafter. |
