Administrative Penalties for Corporate Tax Law Violations : UAE's Cabinet Decision (75) of 2023

Balancing Act for Compliance

The penalties are carefully structured to strike a balance between successful implementation and fostering compliance among UAE businesses. The goal is to align the country with the highest global taxation standards, promoting a legislative environment that supports sustainable economic growth.

Key Provisions

Cabinet Decision No. (75) of 2023 outlines penalties for various violations, including late filing and payment of Corporate Tax dues, failure to notify the Federal Tax Authority of necessary amendments, and a new structure for voluntary disclosure penalties.

Penalties Overview

Non-compliance with record-keeping obligations under Tax Procedures Law or Corporate Tax Law incurs penalties ranging from AED 10,000 to AED 20,000 within 24 months.

Late submission of Tax Returns under Corporate Tax Law will result in penalties ranging from AED 500 per month for the first twelve months to AED 1,000 per month from the thirteenth month onwards, starting the day after the specified deadline.

Failure to settle Payable Tax incurs a monthly penalty of 14% per annum. The due date of payment for Voluntary Disclosure is 20 Business Days from submission, and for Tax Assessment, it's 20 Business Days from receipt.

Incorrect Tax Return submission can lead to AED 500 fine unless corrected before the deadline specified in the corporate tax law.

Failure of the Registrant to submit a deregistration application within the timeframe specified in the Corporate Tax Law and its implementing decisions will incur penalties ranging from AED 1,000 in case of late submission of the application to a maximum of AED 10,000.

Stay Compliant, Stay Informed

To navigate these changes effectively, businesses are encouraged to stay informed and ensure timely compliance with the new regulations.

For a deeper understanding of these updates and the complete list of the penalties, we invite you to read our all-inclusive blog post: Administrative Penalties for Corporate Tax Law Violations.

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