UAE Implements AED 10,000 Penalty for Late Corporate Tax Registration - Smart Zones® UAE

UAE Implements AED 10,000 Penalty for Late Corporate Tax Registration

The United Arab Emirates (UAE) has implemented an administrative penalty of AED 10,000 (approximately USD 2,700) for businesses that fail to register for Corporate Tax within the designated timeframe established by the Federal Tax Authority (FTA). This new measure, outlined in Cabinet Decision No. 10 of 2024, aims to promote timely compliance with relevant tax regulations and comes into effect on March 1, 2024.

This decision aligns with existing administrative penalties for late registration of other taxes in the UAE, such as excise and value-added tax (VAT). The consistent penalty structure aims to encourage a uniform and responsible approach to tax compliance across various business entities operating in the country.

Businesses operating in the UAE are strongly encouraged to review their corporate tax registration status and ensure compliance with the designated deadlines set by the FTA. Failure to register within the prescribed timeframe will result in the imposition of the aforementioned administrative penalty.

For further information and to ensure complete compliance with UAE Corporate Tax regulations, businesses are advised to consult with qualified tax professionals who can provide tailored guidance based on their specific circumstances.


Publish 27 Feb 2024


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