Penalties For Violations Related To Corporate Tax Law
(Applicable from 1 March 2024)
| No. | Description of Violation | Administrative Penalty (AED) |
|---|---|---|
| 1. | Failure to keep the required records and other information | One of the following penalties shall apply:
1. 10,000 for each violation. 2. 20,000 in each case of repeated violation within 24 months from the date of the last violation. |
| 2. | Failure to submit the data, records and documents related to Tax in Arabic to the Authority when requested | 5,000 |
| 3. | Failure to submit a deregistration application within the timeframe | 1,000 in case of late submission of the application and on the same date monthly, up to a maximum of 10,000 |
| 4. | Failure to inform the Authority of the amendment of the information pertaining to Tax record | One of the following penalties shall apply:
1. 1,000 for the first violation. 2. 5,000 in each case of repeated violation within 24 months from the date of the last violation. |
| 5. | Failure of the Legal Representative to provide notification of their appointment within the specified timeframes, in which case the penalties will be due from the Legal Representative’s own funds | 1,000 |
| 6. | Failure of the Legal Representative to file a Tax Return within the specified timeframes, in which case the penalties will be due from the Legal Representative’s own funds | 1. 500 for each month, or part thereof, for the first twelve months.
2. 1,000 for each month, or part thereof, from the thirteenth month onwards. |
| 7. | Failure to submit a Tax Return within the timeframe | 1. 500 for each month, or part thereof, for the first twelve months.
2. 1,000 for each month, or part thereof, from the thirteenth month onwards. |
| 8. | Failure of the Taxable Person to settle the Payable Tax | 1. A monthly penalty of 14% per annum, for each month or part thereof, on the unsettled Payable Tax amount from the day following the due date of payment and on the same date monthly thereafter. |
| 9. | The Registrant submits an incorrect Tax Return | 500, unless the Person corrects his Tax Return before the expiry of the deadline for the submission of the Tax Return according to the Corporate Tax Law. |
| 10. | The submission of a Voluntary Disclosure by the Taxable Person in relation to errors in the Tax Return, Tax Assessment or tax refund application | A monthly penalty of 1% on the Tax Difference, for each month or part thereof, to be applied as of the date following the due date of the relevant Tax Return, the submission of the Tax refund application, or the Notification of the Tax Assessment and until the date the Voluntary Disclosure is submitted. |
| 11. | Failure of the Taxable Person to submit a Voluntary Disclosure in relation to errors in the Tax Return, Tax Assessment or tax refund application | 1. A fixed penalty of 15% on the Tax Difference.
2. A monthly penalty of 1% on the Tax Difference, for each month or part thereof |
| 12. | Failure of a Person subject to Tax Audit, his Tax Agent or Legal Representative to offer facilitation to the Tax Auditor in violation of the provisions of Article (20) of the Tax Procedures Law, in which case the penalties will be due from the Person’s, Legal Representative’s or Tax Agent’s own funds, as applicable | 20,000 |
| 13. | Failure of a Person to submit, or late submission of a Declaration to the Authority, as required in accordance with the provisions of the Corporate Tax Law | 1. 500 for each month, or part thereof, for the first twelve months.
2. 1,000 for each month, or part thereof, from the thirteenth month onwards. |
| 14. | Failure of the Taxable Person to submit a Tax Registration application within the timeframe | 10,000 |
