Penalty for Late Corporate Tax Registration in UAE

On February 27, 2024, the Ministry of Finance announced an AED10,000 penalty for late registration of UAE Corporate Tax. Businesses failing to submit their Corporate Tax registration on time, as specified by the Federal Tax Authority, will face this penalty. The aim of this penalty is to promote compliance with tax laws, urging taxpayers to register for corporate tax promptly. The penalty amount for delayed tax registration mirrors the penalties for late registration of excise tax and value-added tax. This measure underscores the government’s commitment to ensuring timely tax compliance and fostering a culture of adherence to tax regulations among businesses in the UAE.

What is the purpose of AED10,000 penalty for late corporate tax registration in UAE? The purpose of AED10,000 penalty for late corporate tax registration in UAE is to encourage taxpayers to comply with tax regulations and register for corporate tax timely.

Administrative Penalties for Corporate Tax Violations:


Penalty (AED)

Failure to keep required records and information

10,000 for each violation.

20,000 for repeated violations within 24 months

Failure to submit records and documents in Arabic when requested


Late submission of deregistration application

Apply late, you’ll pay 1,000. Then, every month on that same date, you’ll pay 1,000 until you reach a maximum of 10,000

Failure to inform FTA of changes to tax record information

1,000 per violation

5,000 for repeated violations within 24 months

Failure to Notify Appointment Within Timeframes


Failure to File Tax Return Within Specified Timeframes

500 for each complete month or any part thereof, applicable for the initial twelve months.

1,000 for each complete month or any part thereof, effective from the thirteenth month onward.

Failure to Submit Corporate Tax Return within Specified Timeframe

500 for each month, or part thereof, for the first twelve months.

1,000 for each month, or part thereof, from the thirteenth month onwards.

Failure to settle payable tax

14% annual penalty per month on unsettled amount

Registrant submits an incorrect Tax Return

500 penalty unless the person corrects their tax return before the deadline according to Corporate Tax Law

Penalty for Late Submission of Voluntary Disclosure under Tax Procedures Law

Monthly penalty of 1% on Tax Difference until submission

Failure to submit voluntary disclosure before tax audit notification

15% fixed penalty on tax difference, 1% monthly penalty

Failure to facilitate tax audit

20,000 penalty from taxable person, representative or agent


How Can ADEPTS  Help?

ADEPTS play an important role in helping businesses prevent penalties for late corporate tax registration. Here’s how they can assist: 


Timely Compliance Reminders: Provide clients with timely reminders for tax registration deadlines, ensuring prompt submission of necessary documents.


Expert Guidance on Requirements: Offer expert guidance for UAE corporate tax registration, aiding clients in understanding requirements and procedures.


Assistance with Documentation: Streamlines tax registration by preparing and organizing documentation, minimizing errors and delays.


Submission Support: Ensure clients’ timely and accurate submission of registration documents for a smooth process.


Monitoring Regulatory Changes: Updated tax regulations, informing clients promptly of any changes that may impact their tax registration status. 


Regular Compliance Reviews: Regularly review client compliance to ensure they meet tax obligations, avoiding late registration and penalties.


A Guide to VAT Deregistration in UAE

VAT deregistration in UAE is a simple process; businesses must complete their VAT deregistration process correctly and comply with the rules. Businesses must also complete it when they are not eligible to do so; otherwise failing to deregistration faces a heavy penalty. 

VAT Deregistration Criteria in UAE

As per the Federal Tax Authority (FTA) of UAE, there are specific criteria applying for VAT deregistration: 

  • When businesses’ Taxable Supply Ceases 
  • Businesses taxable supplies during the past 12 months were less than the mandatory threshold ( AED 375,000)
  • If businesses have 2 or more TRNs for the same entity or a registered branch, deregistration is applicable for the ‘Other’ reason.


Deregistration Preconditions: Registrants must submit all their due taxes, tax returns, final tax returns, and penalties before deregistration. 

How To Apply For VAT  Deregistration in UAE

You can apply for deregistration through the FTA e-Portal. ADEPTS will also assist you in successfully completing the application process.   


  • Access the EmaraTax account dashboard.
  • Click on “View” to access the Taxable Person Account.
  • Under the title “VAT,” click on “Actions” and choose “DeRegister.”
  • Complete the deregistration process.

Documents for VAT Deregistration in UAE

For deregistration, you must have the following documents:

  • Valid Emirate ID
  • Declaration form, signed and dated by an authorised signatory
  • Trade licence 
  • Financial turnover template
  • Taxable Supplies template
  • Taxable Expense template

Penalties Against VAT Deregistration in UAE

Failing to deregister leads to penalties. Therefore, businesses must deregister timely, and ADEPTS ensures compliance with all regulations. We’ll assist you throughout the deregistration process.  


  • Failure to submit a deregistration application within the specified timeframe leads to an AED 1,000 penalty in case of delay and on the same date monthly thereafter, up to a maximum of AED 10,000.


ADEPTS will assist you in complying with all the requirements to avoid the penalties. Contact us for VAT deregistration and how to stay compliant with UAE tax laws.