The UAE Federal Tax Authority (FTA) has outlined penalties for taxpayers failing to meet their corporate tax obligations. The fines aim to ensure compliance with the Federal Decree-Law No. 47 of 2022 on Corporate Tax.
Monthly Penalties on Unpaid Taxes
Taxpayers who fail to pay the correct corporate tax amount by the deadline will face a penalty equivalent to 14% per annum, calculated monthly. This penalty applies from the day after the payment deadline and accrues on the same date every month until the tax is fully settled.
Payment Deadlines and Regulations
The FTA clarified that the due date for corporate tax payments is no later than nine months after the conclusion of the tax period, as mandated by Federal Decree-Law No. 47 of 2022. The law and its amendments emphasize strict timelines to avoid financial penalties.
Encouraging Compliance
The introduction of these fines underscores the UAE’s commitment to ensuring compliance with its corporate tax laws. Businesses are encouraged to review their financial records and adhere to the regulations to avoid significant financial penalties.