3 August 2026 · Penalties
Tax Penalty Deadlines 2026
Missing a UAE tax deadline is expensive: late corporate tax or VAT registration is AED 10,000, a late CT return runs AED 500 a month for the first year then AED 1,000 a month, a late VAT return is AED 1,000 rising to AED 2,000 on repeat, and late payment adds a monthly penalty plus interest on the unpaid tax. From 14 April 2026, Cabinet Decision No. 129 of 2025 revised parts of this schedule and cut several fixed penalties, so confirm the current figure against tax.gov.ae. The reliable takeaway: the penalty for a missed date routinely exceeds the tax owed.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
The fixed penalties
Register late and it is a flat cost.
- AED 10,000 late CT registration.
- AED 10,000 late VAT registration.
- Charged once, regardless of tax due.
- Register on EmaraTax before the deadline.
The recurring penalties
These grow the longer you wait.
- CT late filing AED 500/month, then AED 1,000.
- VAT late return AED 1,000, then AED 2,000.
- Late payment adds monthly penalty + interest.
- Filing on time but paying late still stings.
Cabinet Decision 129 of 2025
Some penalties came down.
- Effective 14 April 2026.
- Revises the Cabinet Decision 49 of 2021 schedule.
- Several fixed penalties reduced.
- Verify the current amount with the FTA.
Related guides
Frequently Asked Questions
For understanding penalty exposure.
What is the penalty for late corporate tax registration?
AED 10,000, charged as a fixed administrative penalty regardless of the tax due.
How much is a late CT return?
AED 500 for each of the first twelve months late, then AED 1,000 per month, plus interest on any unpaid tax.
What does a late VAT return cost?
AED 1,000 the first time and AED 2,000 if repeated within 24 months, on top of any late-payment penalty.
Did penalties change in 2026?
Yes. From 14 April 2026, Cabinet Decision No. 129 of 2025 revised the schedule and reduced several fixed penalties, so confirm the current figure with the FTA.
Is filing on time enough to avoid penalties?
No. The payment must also clear the FTA by the deadline. A return filed on time but paid late still incurs a late-payment penalty and interest.
Can Exiloz help if I have already missed a date?
Yes. We assess the exposure, help with voluntary disclosure where relevant, and get you back into compliance to stop penalties growing.
Stop penalties growing
Exiloz gets you back into compliance and limits the exposure.