UAE: PENALTY FOR LATE REGISTRATION OF CORPORATE TAX REGISTRATION

4th of April

In order to incentivize businesses not to delay their corporate tax registration, the UAE Ministry of Finance now applies a fine of AED 10,000 for late registration. This decision is aimed at ensuring compliance with the law and motivating taxpayers to behave responsibly.

According to Cabinet Resolution No. 10 of 2024, amending the list of penalties established by the previous Cabinet Resolution No. 75 of 2023, the Federal Tax Authority (FTA) has been authorized to impose an administrative fine for violations related to corporate tax.

Under the current law, effective June 1, 2023, the UAE's corporate tax level is one of the lowest in the world at 9% for companies with revenues of AED 375,000 and above. The UAE government has also launched the Small Business Support Program (SBR), which aims to ease the implementation of corporate tax.

This program is only available to UAE residents with an annual business income of AED 3 million or less and is valid until December 31, 2026.

The introduction of a new penalty of AED 10,000 for delayed corporate tax registration represents a significant financial burden to consider when doing business in the country. In light of such updates, complying with all the rules and deadlines of the legislation becomes even more critical for the success of companies in the UAE.

That is why we offer accounting support for businesses in the Emirates by our company's specialists. UAE legislation has many pitfalls that are worth paying attention to and taking into account.

Tasks we perform:

business registration with the FTA (tax service);
registration on the EMARA TAX PORTAL portal (FTA electronic portal);
obtaining a tax number for international business activities in the UAE;
obtaining a tax certificate;
procedure for obtaining a VAT certificate;
FTA registration for reporting and corporate tax payment;
monthly accounting services for the company (preparation of statements based on bank statements and bookkeeping);
reporting to the tax authorities of the Arab Emirates (UAE).

Please contact our specialist for a free consultation.