The Federal Tax Authority (FTA) has reiterated the importance of early preparation and timely submission of Corporate Tax Returns, along with the settlement of Corporate Tax Payable, within the prescribed deadlines for each Tax Period. This measure is essential to avoid late payment penalties and non-compliance fines.
The Authority emphasised that all Taxable Persons subject to Corporate Tax, as well as Exempt Persons required to register, must submit their Tax Returns—or annual declarations in the case of Exempt Persons—and pay the Corporate Tax due within a maximum of nine months from the end of the relevant Tax Period, or from the close of the financial year for Exempt Persons.
The FTA cautioned that failure to submit a Tax Return or delays in paying the Corporate Tax will result in administrative penalties. These start at AED 500 for each month, or part thereof, during the first twelve months, increasing to AED 1,000 for each subsequent month, or part thereof, from the thirteenth month onwards.
The Authority further clarified that Tax Returns may be filed either directly by the Taxable Person or through an authorised representative, including a registered tax agent or legal representative. However, penalties may also apply under the Tax Procedures Law and the Corporate Tax Law if inaccurate information is provided or administrative requirements are not fulfilled.
The FTA also noted that Corporate Tax registration is available via the EmaraTax digital tax services platform, part of its wider digital transformation strategy. The platform aims to support voluntary tax compliance by providing accessible and user-friendly services for taxpayers.
