1 September 2026 · Penalty
The AED 1,000/Month Late Penalty
If you miss the 3-month corporate-tax deregistration deadline, a penalty of AED 1,000 accrues each month from the missed date, capped at AED 10,000. It sits within the unified administrative-penalty regime under Cabinet Decision 129 of 2025. Because it builds quietly after a company has 'closed', the fix is to diarise the deadline and deregister promptly once trading stops.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
A monthly build-up
The fine grows until you file.
- AED 1,000 per month from the missed deadline.
- Capped at AED 10,000.
- Charged on the same date each month.
- Separate from any unpaid tax.
Simple to prevent
Timely filing removes the risk.
- Diarise the three-month window.
- File the final return early.
- Clear balances before applying.
- Submit the deregistration promptly.
Related guides
Frequently Asked Questions
For understanding and avoiding the fine.
How much is the late deregistration penalty?
AED 1,000 per month from the missed deadline, capped at AED 10,000.
Is it on top of unpaid tax?
Yes. It is separate from, and in addition to, any outstanding tax and other penalties.
Can the penalty be waived?
Penalty relief depends on the FTA's rules; the safest route is to deregister on time.
Can Exiloz help me avoid it?
Yes. We deregister within the window so the penalty never starts.
Avoid the late fine
Exiloz deregisters your company on time so the AED 1,000/month penalty never starts.