The Federal Tax Authority (FTA) has issued a reminder to companies in the UAE to file their corporate tax returns and pay any due tax within the prescribed deadlines to avoid costly penalties.
Under the UAE Corporate Tax Law, all taxable businesses — as well as exempt entities that are still required to register — must file their tax returns (or annual declarations for exempt registrants) and settle their corporate tax obligations within nine months from the end of their tax period or financial year.
Penalties for Late Corporate Tax Filing in the UAE
The FTA has emphasized that delays in either filing or paying corporate tax will result in administrative fines:
- AED 500 per month for the first 12 months of delay.
- AED 1,000 per month starting from the 13th month onwards.
In addition to late filing penalties, fines may also be imposed for providing inaccurate information or failing to meet other administrative requirements, in line with the Tax Procedures Law and Corporate Tax Law.
How to File UAE Corporate Tax Returns
Businesses have multiple options for filing corporate tax returns:
- Filing directly through their in-house finance team.
- Appointing an authorized representative, such as a registered tax agent or legal representative.
- Using the FTA’s EmaraTax platform, a digital service hub that allows companies to register, file returns, and settle liabilities online, anytime and anywhere.
FTA Support and Awareness
To ensure smooth compliance, the FTA continues to launch awareness campaigns, publish detailed guides, and provide clarifications on its official website. The authority also maintains open communication channels with businesses to address challenges and gather feedback.
Key Takeaway for UAE Businesses
With strict deadlines and clear penalties, it is crucial for businesses operating in the UAE to stay on top of their corporate tax obligations. Reviewing the Corporate Tax Law, relevant Cabinet and Ministerial Decisions, and official FTA guidelines will help ensure compliance and avoid unnecessary fines.
