15 September 2026 · The Numbers
Reduced UAE Tax Penalty Amounts
From 14 April 2026, Cabinet Decision No. 129 of 2025 lowers several fixed administrative penalties toward proportionality. The clearest example is the failure to keep records in Arabic, which drops from AED 20,000 to AED 5,000. Because the reductions apply from the effective date, a penalty raised earlier can still carry the old amount, so timing matters. A lower penalty does not change the obligation itself: keeping Arabic records, registering on time and filing correctly are all still required, only the price of failing some of them has moved.
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Arabic records
The most cited example.
- Old fixed penalty AED 20,000.
- New amount AED 5,000 from 14 April 2026.
- A straight AED 15,000 difference.
- Same breach, lower price.
Proportionality
Match penalty to severity.
- Fixed heavy fines for paperwork eased.
- Serious breaches still carry weight.
- Several penalties re-priced, not just one.
- Confirm each amount against tax.gov.ae.
Timing decides
The effective date is everything.
- New amounts apply from 14 April 2026.
- Earlier penalties can keep old figures.
- The date on the assessment matters.
- Get a live case assessed before paying.
Related guides
Frequently Asked Questions
For anyone facing a penalty.
Which penalty was cut the most visibly?
The failure to keep records in Arabic, which drops from AED 20,000 to AED 5,000 from 14 April 2026 under Cabinet Decision No. 129 of 2025.
Are all penalties lower now?
No. Several fixed penalties came down toward proportionality, but not everything changed. Confirm the specific penalty amount against tax.gov.ae for your situation.
Will my existing penalty be reduced automatically?
Not automatically. A penalty raised before 14 April 2026 can still carry the old amount. Whether the lower figure applies depends on the date and the facts, which is worth having assessed.
Does a lower penalty change my obligations?
No. You still must keep Arabic records, register on time and file correctly. Only the price of failing some obligations moved, not the obligations themselves.
How do I confirm the exact amount?
Check the published schedule on tax.gov.ae for the specific penalty and effective date, or have a consultant confirm it against the decision before you pay or challenge.
Can Exiloz check if my fine dropped?
Yes. We assess whether the new schedule reduces your specific penalty and whether a challenge or voluntary disclosure is the better route.
Check if your fine dropped
Exiloz assesses whether the new schedule reduces your specific penalty.