UAE Corporate Tax Fines And Penalties

1. UAE CORPORATE TAX UAE CORPORATE TAX FINES AND FINES AND PENALTIES PENALTIES

2. With the implementation of the UAE Corporate Tax regime, businesses across the Emirates are expected to comply with the new tax rules. Failing to meet these obligations can result in significant Corporate Tax fines in UAE, including penalties for late registration, incorrect filing, and non-compliance. In this blog, we’ll break down the penalties for UAE Corporate Tax, explore the UAE Corporate Tax Penalty Waiver, and provide clear steps to avoid these costly fines.

3. WHAT IS THE WHAT IS THE UAE CORPORATE TAX UAE CORPORATE TAX PENALTY WAIVER PENALTY WAIVER The UAE Corporate Tax Penalty Waiver is a government-backed relief initiative launched by the Ministry of Finance and implemented by the Federal Tax Authority (FTA). It is designed to support businesses that may have struggled to comply with new tax regulations, especially during the initial phases of implementing the UAE’s corporate tax system. Under this waiver scheme, eligible businesses can apply to have administrative penalties reduced or completely waived, provided they fulfil certain conditions. These penalties typically include fines related to: Late registration for corporate tax Late filing of tax returns Late payment of corporate tax liabilities Failure to maintain proper accounting records Other non-compliance actions under the UAE Tax Procedures Law

4. WHY THE UAE LAUNCHED THE WHY THE UAE LAUNCHED THE CORPORATE TAX CORPORATE TAX PENALTY WAIVER PENALTY WAIVER The UAE government introduced the corporate tax penalty waiver as a strategic move to support the business community during the early stages of the new corporate tax regime. Here’s a breakdown of the key reasons behind this initiative: 1. ENCOURAGE VOLUNTARY TAX COMPLIANCE 1. ENCOURAGE VOLUNTARY TAX COMPLIANCE 2. EASE THE TRANSITION TO THE NEW CORPORATE TAX REGIME 2. EASE THE TRANSITION TO THE NEW CORPORATE TAX REGIME 3. SUPPORT BUSINESSES WITH NEW REPORTING STANDARDS 3. SUPPORT BUSINESSES WITH NEW REPORTING STANDARDS 4. STRENGTHEN ECONOMIC STABILITY 4. STRENGTHEN ECONOMIC STABILITY

5. AIMS OF THE WAIVER AIMS OF THE WAIVER The UAE Corporate Tax Penalty Waiver is more than just a short-term financial relief — it’s a strategic move by the government with broader goals in mind: 1. PROMOTING LONG-TERM COMPLIANCE 1. PROMOTING LONG-TERM COMPLIANCE 2. EDUCATING BUSINESSES ON THEIR TAX OBLIGATIONS 2. EDUCATING BUSINESSES ON THEIR TAX OBLIGATIONS 3. CREATING A FAIR AND TRANSPARENT TAX ENVIRONMENT 3. CREATING A FAIR AND TRANSPARENT TAX ENVIRONMENT 4. MINIMISING ERRORS IN INITIAL TAX FILINGS 4. MINIMISING ERRORS IN INITIAL TAX FILINGS

6. WHO QUALIFIES WHO QUALIFIES FOR THE UAE CORPORATE TAX PENALTY WAIVER? FOR THE UAE CORPORATE TAX PENALTY WAIVER? Your business may be eligible for the UAE Corporate Tax penalty waiver if it takes the right corrective actions within the stipulated timeframe. The Federal Tax Authority (FTA) has outlined key conditions businesses must meet to qualify: 1. TIMELY PAYMENT OF TAXES 1. TIMELY PAYMENT OF TAXES 2. ACCURATE TAX RETURN FILING 2. ACCURATE TAX RETURN FILING 3. CORRECTION OF ERRORS 3. CORRECTION OF ERRORS 4. VOLUNTARY DISCLOSURE COMPLIANCE 4. VOLUNTARY DISCLOSURE COMPLIANCE

7. HOW TO REGISTER HOW TO REGISTER FOR CORPORATE TAX AND FILE ON TIME IN THE UAE FOR CORPORATE TAX AND FILE ON TIME IN THE UAE To avoid penalties and stay compliant with UAE’s Corporate Tax law, businesses must follow a structured process for registration and timely filing: STEP 1: REGISTER ON THE EMARATAX PORTAL STEP 1: REGISTER ON THE EMARATAX PORTAL STEP 2: PREPARE AND UPLOAD REQUIRED DOCUMENTS STEP 2: PREPARE AND UPLOAD REQUIRED DOCUMENTS STEP 3: FILE TAX RETURNS ON TIME STEP 3: FILE TAX RETURNS ON TIME STEP 4: MAINTAIN PROPER RECORDS STEP 4: MAINTAIN PROPER RECORDS PRO TIP PRO TIP If you are unsure about the process, consult a tax agent or business setup consultant to ensure your documents and filings are in order.

8. PENALTIES WITHOUT PENALTIES WITHOUT THE WAIVER THE WAIVER If your business does not meet the criteria for the UAE Corporate Tax penalty waiver or misses key deadlines, you could face the following hefty fines under the Federal Tax Authority (FTA) regulations: 1. AED 10,000 – FAILURE TO REGISTER ON TIME 1. AED 10,000 – FAILURE TO REGISTER ON TIME 2. AED 500 TO AED 20,000 – LATE FILING OF TAX RETURNS 2. AED 500 TO AED 20,000 – LATE FILING OF TAX RETURNS 3. AED 1,000 PER DAY – DELAY IN PROVIDING INFORMATION 3. AED 1,000 PER DAY – DELAY IN PROVIDING INFORMATION 4. AED 20,000 – INADEQUATE RECORD KEEPING 4. AED 20,000 – INADEQUATE RECORD KEEPING 5. UP TO 200% OF TAX DUE – FILING INCORRECT RETURNS 5. UP TO 200% OF TAX DUE – FILING INCORRECT RETURNS WHY IT MATTERS WHY IT MATTERS These penalties can have a severe impact on cash flow, particularly for startups and small to medium-sized enterprises (SMEs). Non-compliance also risks FTA audits, license suspensions, and reputational damage.

9. HOW TO APPLY FOR A REFUND HOW TO APPLY FOR A REFUND IF YOU ALREADY PAID A PENALTY IF YOU ALREADY PAID A PENALTY If you’ve already paid a penalty that qualifies for relief under the UAE Corporate Tax Penalty Waiver scheme, you can apply to get that amount refunded. Here’s how: STEP 1: LOG IN TO THE EMARATAX PORTAL STEP 1: LOG IN TO THE EMARATAX PORTAL STEP 2: SUBMIT A REQUEST FOR RECONSIDERATION STEP 2: SUBMIT A REQUEST FOR RECONSIDERATION STEP 3: TRACK YOUR REQUEST STEP 3: TRACK YOUR REQUEST IMPORTANT NOTES Refunds are not automatic; you must submit a formal request. Approval is at the discretion of the Federal Tax Authority (FTA). Ensure your request aligns with the waiver eligibility criteria — including timely tax filing, payment, and voluntary disclosures. IMPORTANT NOTES

10. PENALTIES FOR PENALTIES FOR CORPORATE TAX CORPORATE TAX IF YOU ALREADY PAID A PENALTY IF YOU ALREADY PAID A PENALTY Non-compliance with the UAE Corporate Tax law can result in serious financial, legal, and reputational consequences. Below are the everyday non-compliant actions and their potential outcomes: 1. NOT REGISTERING FOR CORPORATE TAX 1. NOT REGISTERING FOR CORPORATE TAX 2. SUBMITTING FALSE OR MISLEADING INFORMATION 2. SUBMITTING FALSE OR MISLEADING INFORMATION 3. FAILING TO FILE RETURNS OR PAY DUES 3. FAILING TO FILE RETURNS OR PAY DUES 4. IGNORING AUDIT REQUESTS FROM THE FTA 4. IGNORING AUDIT REQUESTS FROM THE FTA

11. HOW BUSINESSES HOW BUSINESSES CAN AVOID CAN AVOID CORPORATE TAX PENALTIES IN THE UAE CORPORATE TAX PENALTIES IN THE UAE Avoiding corporate tax penalties in the UAE is entirely possible if businesses take a proactive and compliant approach. Here’s how: 1. REGISTER EARLY 1. REGISTER EARLY 2. KNOW YOUR FILING DEADLINES 2. KNOW YOUR FILING DEADLINES 3. MAINTAIN ACCURATE FINANCIAL RECORDS 3. MAINTAIN ACCURATE FINANCIAL RECORDS 4. CONSULT WITH TAX EXPERTS 4. CONSULT WITH TAX EXPERTS 5. STAY UPDATED ON FTA GUIDELINES 5. STAY UPDATED ON FTA GUIDELINES Being early, accurate, and informed—with the support of tax professionals—can help your business stay penalty-free in the UAE corporate tax system.

12. SECURE YOUR COMPLIANCE WITH SECURE YOUR COMPLIANCE WITH SHURAA TAX SHURAA TAX Navigating the UAE’s evolving tax landscape can be challenging, but avoiding UAE corporate tax penalties doesn’t have to be. Whether you’re dealing with corporate tax fines in the UAE, concerned about penalties for UAE corporate tax, or trying to avoid a UAE corporate tax late registration penalty, Shuraa Tax is here to help. Our team ensures your business stays fully compliant— from accurate registration to timely filings and strategic waiver applications. With our expert support, you can minimize risks and focus on growth.

13. CONTACT US Phone +(971) 44081900 Email info@shuraatax.com Website shuraatax.com Location 601 Sheikh Zayed Road, 6th Floor, Aspin Commercial Tower – Dubai