FTA administrative penalties
What does being late actually cost?
Late registration, late filing and late payment each carry their own FTA penalty. See the real number before it grows.
Enter 0 if no tax is due — filing late is penalised even at zero tax.
Estimated total penalties
3,250 AED
The penalty schedule
The three fines that catch SMEs
10,000
Late registration (AED)
A one-off fixed penalty for missing your corporate tax registration deadline — even if you owe zero tax.
500/mo
Late filing (AED)
AED 500 for each of the first 12 months late, then AED 1,000 per month after that.
14%
Late payment (p.a.)
Annual rate applied monthly on any unsettled tax from the day after the payment deadline.
How the numbers build
Where FTA penalties actually come from
Administrative penalties in the UAE are designed to punish delay rather than to raise revenue, which is why the largest fines land on businesses that owed little or nothing. Three of them account for almost everything an SME runs into.
Late registration: AED 10,000
A one-off fixed penalty for missing your registration deadline. It does not scale with turnover and it does not care whether you would have owed tax. A dormant company with no revenue that registers late pays the same AED 10,000 as a trading business, which is the single most avoidable fine in the system.
Late filing: AED 500 a month, then AED 1,000
The filing penalty runs at AED 500 for each month or part month during the first twelve months, and rises to AED 1,000 a month after that. Two points matter. It accrues on part months, so being one day late costs the same as being twenty days late. And it is charged on the act of not filing, so a nil return filed late is penalised exactly like a return with tax on it.
A return filed eighteen months late therefore carries 12 × 500 plus 6 × 1,000, which is AED 12,000, before any payment penalty and before any registration penalty.
Late payment: 14% per annum
Unpaid tax attracts a monthly penalty equivalent to 14% a year on the outstanding amount. Unlike the other two this one scales with the debt, so it is the one that hurts a profitable business. It also keeps running while a dispute is open, which is why paying the assessed amount and arguing afterwards is often cheaper than withholding payment and winning slowly.
A worked example
| Situation | AED 50,000 corporate tax owed, return and payment six months late, registration on time |
|---|---|
| Late filing | 6 months × AED 500 = AED 3,000 |
| Late payment | AED 50,000 × 14% × 6/12 = AED 3,500 |
| Total penalties | AED 6,500 on top of the AED 50,000 tax |
Run your own numbers in the calculator above. If registration was also late, add the fixed AED 10,000.
What to do if you are already late
File first, even if you cannot pay. Filing stops the AED 500 or AED 1,000 monthly clock immediately, while the payment penalty continues on the balance. Filing and paying are separate penalties, and there is no reason to accrue both when you can stop one today.
Then look at whether the delay had a cause the FTA recognises. A reconsideration request asks the Authority to review a penalty, and it must be submitted within the statutory window with the supporting evidence attached. The disputes guide sets out the sequence, the deadlines and what a reconsideration needs to contain to have any chance.
Staying out of it
Almost every penalty on this page comes from a missed date rather than a disagreement about tax. Put your financial year end in a calendar with the nine-month corporate tax deadline and the 28-day VAT deadlines marked, and check the compliance timeline once a quarter. That is genuinely the whole prevention strategy.
Common questions
What is the penalty for late corporate tax registration?
A fixed AED 10,000. It applies regardless of turnover and regardless of whether any tax would have been due.
Is there a penalty if I file late but owe no tax?
Yes. The late filing penalty is charged for failing to file on time, not for owing tax. A nil return filed late attracts the same AED 500 per month, rising to AED 1,000 per month after twelve months.
How is the late payment penalty calculated?
It accrues monthly on the unpaid tax at a rate equivalent to 14% per annum, and it continues to run while the amount is outstanding, including while a dispute is being considered.
Should I file even if I cannot pay?
Yes. Filing immediately stops the monthly late filing penalty, while the late payment penalty continues only on the unpaid balance. Filing and paying carry separate penalties.
Can an FTA penalty be reduced or cancelled?
You can submit a reconsideration request asking the Authority to review the penalty, within the statutory deadline and with supporting evidence. It is a formal process rather than an appeal for leniency.
General information about UAE rules, not tax or legal advice. Verify anything that affects a decision with the relevant authority or a licensed adviser. About · Contact · Terms · Privacy