Corporate Tax Penalty Calculator UAE

Every amount below is read from the table annexed to Cabinet Decision No. 75 of 2023, in the consolidated text published by the Ministry of Finance that incorporates Cabinet Decision No. 10 of 2024. Nothing here is derived, smoothed or averaged: each row names the item of the table it comes from.

The calculator adds up the amounts that the decision states as fixed sums or as fixed percentages, because those are the only ones a browser can compute honestly. It does not prorate the late-payment charge across part months, and the section immediately below explains why that refusal is deliberate rather than an omission.

For the tax figure itself, rather than the penalty on it, use the band calculator on the corporate tax rate page; this page assumes you already know the payable tax and are working out what being late with it costs.

Item 8 of the table says: 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. That sentence is doing two things at once, and the two do not resolve into one number.

It names an annual rate and a monthly charging event. It does not say how to get from one to the other. Three readings are all consistent with the words. The annual rate could be divided into twelfths, so each month or part month costs one twelfth of 14%. It could be applied on a daily basis and billed monthly. Or a part month could attract the same charge as a whole one, which the phrase "or part thereof" arguably requires and which would make the effective annual cost of a thirteen-part-month delay higher than 14%.

We could not find an FTA publication that settles it — no worked example, no clarification, no calculation shown on a penalty notice we could cite. Checked 17 August 2026. So this page does not print a monthly percentage, and if you find one on a competitor's calculator, ask where it came from. Fourteen divided by twelve is arithmetic, not law.

What the tool gives you instead is the figure that needs no convention: 14% of the unsettled tax, which is what a full year of delay costs on a simple reading. Below a year it overstates; above a year it understates. The authoritative number is the one the FTA has actually assessed, and that lives on your ledger in emaratax portal, not in any calculator.

Item 14 was not in the original decision. Cabinet Decision No. 10 of 2024 added it, applicable from 1 March 2024, and it charges a flat AED 10,000 for failing to submit a tax registration application within the timeframe the Authority specified. It is not monthly and it does not scale with turnover or with tax.

The FTA then launched an initiative to waive it. The condition is specific and it is a filing condition, not an application form: the taxable person must submit the tax return within seven months from the end of the first tax period, and a person exempt from corporate tax must submit the annual declaration within seven months from the end of its first financial year. Note that this is seven months, not the usual nine, and it applies to the first tax period only.

The FTA's page sets out five situations it covers, and they differ in outcome. Where the penalty was issued and not yet paid, meeting the condition means it is not collected. Where it was issued and already paid, meeting the condition means the amount is refunded to the tax account. Where no registration application has been made at all, the taxpayer must register and then file within the same seven months for the penalty to be waived if it is imposed.

So the calculator asks you rather than assuming. Set the waiver field to yes only if the filing has happened, or will certainly happen, inside seven months of the end of the first tax period. Nothing about it is automatic, it reaches only that one penalty, and it leaves late filing under item 7 and late payment under item 8 exactly where they were.

Article 3 of Cabinet Decision No. 75 of 2023 governs the recurrence of the monthly penalties, and it is named for items 3, 6, 7, 8 and 13 specifically. Where a penalty falls on the same date each month, and a month has no corresponding date, the date is taken to be the last day of that month. Every other month uses the date on which the monthly penalty was first imposed.

In practice: a filing penalty first imposed on 31 March recurs on 30 April, then returns to the 31st in May. The anniversary does not drift forward once it has been pulled back.

This matters because the VAT side does the opposite. Under the penalties decision for VAT and excise, a month with no corresponding date rolls to the first day of the following month. Same idea, opposite direction, and a day either way changes whether a part month has begun. Anyone maintaining one spreadsheet for both taxes will get one of them wrong, and the corporate tax page you are reading is not the place to import the VAT habit. Compare the two schedules directly on penalties & disputes in the UAE before you build a model that covers both.

One more counting point sits in the Tax Procedures Law rather than in the penalties decision. Article 49 says the day of notification, or of the event that started the period, is not counted; a period ending on a non-business day runs to the next business day; and everything is calculated on the Gregorian calendar. That is what makes the 20 business days in item 8(2) longer in wall-clock terms than it looks.

A penalty calculator that models what it cannot know produces a confident wrong figure, which on a tax liability is worse than no figure. The boundaries of this one are worth stating plainly.

It is not an assessment. Under Article 24 of the Tax Procedures Law the FTA issues an administrative penalties assessment and notifies it within five business days, and that document, not this page, determines what is owed. It is also not a legal opinion on whether a violation occurred: the tool takes your answers at face value and multiplies.

It does not apply the Article 24(4) ceiling, although it computes it. The ceiling says the amount of any administrative penalty shall not exceed two times the amount of tax in respect of which the penalties assessment was issued. Applying that to a bundle of estimated penalties, some of which relate to no tax figure at all, would be an interpretation we cannot source. Article 24(5) is worth knowing alongside it: paying a penalty does not discharge the tax, and settling the tax does not extinguish the penalty. They are two debts.

Two article numbers are routinely swapped in UAE penalty content, so we will state them once. Article 46 of the Tax Procedures Law is the statute of limitation — five years from the end of the tax period as a general rule, fifteen where there was tax evasion or a failure to register at all. Article 50 is the waiver power, which forms a committee chaired by the Chairman of the Authority's board and sends the controls to Cabinet Decision No. 105 of 2021. If an adviser cites Article 46 for a waiver, they have the wrong provision. Article 46 was also renumbered by Federal Decree-Law No. 17 of 2025, in force 1 January 2026: a new clause 4 was inserted for refund applications, so the five-year bar on voluntary disclosures now sits at clause 6 and the fifteen-year evasion and registration cases at clauses 7 and 8.

Finally, it publishes no track record. This page does not claim any penalty was ever reduced, waived or overturned on anyone's behalf, because no such record is published, and a page that implies one is selling an outcome it cannot evidence. What it can do is show you the arithmetic and name the item of the table each figure comes from.