Don't miss the deadline: the UAE has introduced a hefty fine for late tax registration

In its drive to build a diversified, transparent economy, the UAE continues to refine its tax legislation. An important signal for the entire business community: from 1 March 2024 an administrative fine has been in force for companies that miss the Corporate Tax registration deadline.

Under a Cabinet decision, late registration with the Federal Tax Authority (FTA) now costs businesses AED 10,000. This is a serious measure designed to ensure discipline and compliance with tax obligations across every market participant.

Why this fine was introduced

Introducing a fixed fine is a logical step toward strengthening tax discipline in the country: the UAE government is making it clear that complying with established procedures and deadlines is mandatory for everyone. The new fine brings Corporate Tax administration in line with the rules already in place for VAT and excise tax, creating a single, predictable system.

It's not a punitive measure but a motivational tool: timely registration lets the FTA manage the tax system effectively, while letting businesses avoid unnecessary risk and focus on growth.

Key dates

• 1 June 2023 — the Federal Corporate Tax Law took effect, applying to tax periods beginning on or after this date.
• 1 March 2024 — the date the AED 10,000 late-registration fine officially took effect (introduced by Amendments to the Schedule of Violations — Cabinet Decision No. 10 of 2024).

A reminder of the key Corporate Tax conditions

The UAE still offers one of the most attractive tax regimes in the world: the standard Corporate Tax rate is 9%, applied to business income above AED 375,000 a year, while profit within that threshold is taxed at 0%.

What businesses should do

If a company hasn't yet registered for Corporate Tax and the tax period has already begun, it's time to act: the AED 10,000 fine is a significant sum that's easily avoided by registering on time. The process requires attention to detail and preparing the necessary documents, so it's not worth leaving it until the last moment.