What does a late Corporate Tax return cost?
The late filing penalty grows in two tiers, and a second penalty runs separately on unpaid tax. This calculator shows both apart.
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How this is calculated
The late filing penalty grows in two tiers
For the first twelve months a late return costs AED 500 per month, from the thirteenth month AED 1,000 per month. What counts is the started month, so a single day late already costs the full AED 500. Cabinet Decision No. 75 of 2023.
A second penalty runs on unpaid tax
Corporate Tax not paid on time attracts a monthly administrative penalty based on 14 per cent per annum, from the day after the filing deadline, for each month or part of a month. This is an administrative penalty, not civil default interest. It runs independently of the late filing penalty: file on time but pay late and you owe no filing penalty, but you do owe this one.
The AED 10,000 you can get back
Late registration carries a fixed penalty of AED 10,000. What many miss: under Cabinet Decision No. 10 of 2024 the FTA waives or refunds it if the first return is filed within seven months of the end of the first tax period, two months ahead of the normal nine-month deadline. The waiver covers penalties from 1 June 2023 onwards and applies to mainland, free zone and exempt persons alike.
Why this calculator does not do VAT penalties
Since 14 April 2026, VAT and excise follow Cabinet Decision No. 129 of 2025, a separate tiered regime that distinguishes between a first and a repeat violation. Corporate Tax remains governed by Cabinet Decision No. 75 of 2023. These are two different rulebooks.
For Corporate Tax specific violations this calculator therefore continues to apply Cabinet Decision No. 75 of 2023 and covers Corporate Tax only. It is not intended for VAT penalties.
What this calculator cannot do
- It does not know your tax period. You enter the filing deadline yourself. To work out that date, use the deadline calculator.
- It ignores instalments and part payments. If you have already paid part of the tax, enter only the outstanding balance.
- It says nothing about whether you owe tax at all. That is what the Corporate Tax calculator is for.
- It is for general information only and does not replace individual tax or legal advice. Whether a waiver request succeeds in your case is for the FTA to decide.
Legal note. The information and calculators provided here are for general information purposes only and do not replace individual tax or legal advice. Results are based on the data you enter and on the statutory rules applied at the time of calculation.
Legal position as at 15 August 2026. Sources: Cabinet Decision No. 75 of 2023 on Administrative Penalties , Federal Decree-Law No. 47 of 2022 , FTA Decision No. 3 of 2024 on the Corporate Tax registration timeline .
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