A UAE corporate tax return is due within nine months of the end of the tax period. File late and you pay AED 500 for each month or part of a month in the first 12 months, rising to AED 1,000 a month from the 13th. Tax paid late also accrues a charge of 14% a year. The two penalties are separate and can apply together.
The deadline
The return and the payment are both due within nine months of the end of the tax period. A business with a 31 December 2025 year end therefore has until 30 September 2026. See UAE corporate tax deadlines and corporate tax return filing for the mechanics.
Late filing: AED 500, then AED 1,000 a month
The administrative penalty for submitting the return late is AED 500 for each month, or part of a month, during the first 12 months after the due date. From the 13th month it rises to AED 1,000 for each month or part. The FTA has described it in these terms, and it begins the day after the due date.
| Return filed | Months late (or part) | Penalty |
|---|---|---|
| 10 days after the due date | 1 | AED 500 |
| 45 days after the due date | 2 | AED 1,000 |
| Six months after | 6 | AED 3,000 |
| Fifteen months after | 15 | AED 6,000 for the first 12 months plus AED 3,000 for months 13 to 15, AED 9,000 in total |
A single day late counts as a full month, so filing on day 31 after the deadline costs the same as filing on day 60.
Late payment: 14% a year
Tax that is not paid by the due date accrues a charge of 14% a year, calculated monthly on the unpaid amount. This is the regime in force since 14 April 2026 under Cabinet Decision No. 129 of 2025, replacing the earlier immediate charge plus monthly percentages. Published summaries describe it as non-compounding.
On AED 100,000 of unpaid tax, three months late costs roughly AED 3,500, which is 14% of AED 100,000 multiplied by three twelfths. Payment is separate from filing, so a return filed on time does not stop the charge if the money is late. Payment methods are described in how to pay corporate tax.
Late registration is separate
Failing to register for corporate tax on time carries its own penalty of AED 10,000. The FTA has offered waivers in some circumstances, which depend on filing the first return within a set time. See the corporate tax registration penalty for the current position. The registration step is covered by corporate tax registration.
If the return was wrong
Filing on time with an error is a different problem. Correct it through voluntary disclosure before the FTA finds it, because the penalty for a disclosed error is lower than for one found in an audit. The common causes are covered in corporate tax return errors.
How to limit the cost
- Know your first deadline. See the first tax period guide.
- Plan the audit early. If your accounts must be audited, the audit is the usual cause of delay. See audited accounts and corporate tax.
- File before you can pay. A late payment is cheaper than a late return plus a late payment.
- Keep the evidence. Records support any later reconsideration; see tax record retention.
You can estimate exposure with the tax penalty calculator. Our corporate tax team prepares and files returns and can bring a late filing back into compliance.
Sources
The AED 500 and AED 1,000 monthly amounts are as described by the Federal Tax Authority in its statement on late submission, reported by Khaleej Times. The late payment regime is summarised by Crowe UAE. This is general information; check the current Cabinet Decision for a specific case.
Worked examples
A company with a 31 December 2025 year end files late and pays late. Its corporate tax is AED 60,000.
| Scenario | Filing penalty | Late payment charge |
|---|---|---|
| Return and payment on 15 October 2026, 15 days late | AED 500 | About AED 350 (14% a year on AED 60,000 for about 15 days, subject to the FTA calculation method) |
| Return and payment on 20 December 2026, 81 days late | AED 1,500 | About AED 1,850 (14% a year on AED 60,000 for about 81 days, subject to the FTA calculation method) |
The numbers are illustrative. The point is that the filing penalty is a fixed monthly amount and the payment charge scales with the tax owed, so for large taxpayers payment is the bigger exposure.
The usual reasons returns are late
- Accounts not finalised because the audit is not complete.
- The first tax period was not identified correctly. See the first tax period guide.
- Uncertainty about exempt income, relief claims or related-party adjustments.
- Nobody owns the deadline.
What to do if you are already late
- Confirm the exact due date for the period.
- Finalise the accounts, using unaudited numbers if that is the only way to file, and correct later by disclosure if needed.
- File first, because the monthly filing penalty only stops on filing.
- Pay, to stop the payment charge.
- Note the reasons, in case a reconsideration request is appropriate.
A deadline calendar for the first year
| Year end | Return and payment due |
|---|---|
| 31 December | 30 September of the following year |
| 31 March | 31 December of the same calendar year |
| 30 June | 31 March of the following year |
| 30 September | 30 June of the following year |
Add a reminder three months before each date: that is when the accounts should be substantially complete. If your accounts must be audited, add the audit sign-off date between the two.
Who is responsible
The duty to file sits with the taxable person, not with the adviser. A director who assumes the accountant will remember is the usual source of a missed deadline. Agree in writing who owns the date, who prepares the return and who approves it. A short responsibility note, reviewed once a year, costs nothing and prevents the penalty.
Tax groups and connected persons
A tax group files a single return for the group, so the deadline depends on the group structure and its parent. If your business joins or leaves a group during the year, confirm how the tax period and the filing obligation change. See UAE corporate tax groups.
Frequently asked questions
AED 500 for each month or part of a month in the first 12 months after the due date, rising to AED 1,000 for each month or part from the 13th month.
Within nine months of the end of the tax period. A 31 December year end is due by 30 September of the following year.
Yes. Unpaid tax accrues 14% a year, calculated monthly, from the day after the due date under the framework in force since 14 April 2026.
Yes. The penalty applies for each month or part of a month, so one day late costs a full month.
Yes. The filing penalty and the payment charge are separate and can both apply to the same return.
By voluntary disclosure. A disclosed error attracts a lower penalty than one found by the FTA in an audit.