UAE Announces Dh10,000 Fine Over Late Registration of Corporate Tax

The Ministry of Finance announced a new fine of Dh10,000 for those who register late for corporate tax. This fine aims to make people follow tax rules and register on time. It’s the same amount as fines for late registration in other taxes. Cabinet Decision No. 10 of 2024 changes the penalties for tax violations. These penalties were set by Cabinet Decision No. 75 of 2023, which the Federal Tax Authority follows. The new fine starts on March 1, 2024.

The corporate tax law started on June 1, 2023, with a low rate of nine percent for companies making over Dh375,000 profit. In December 2023, a guide on who needs to pay corporate tax was published. The Federal Tax Authority advises people to check this guide and other materials on their website.

The government also offers Small Business Relief (SBR) to help small businesses with tax. This relief is for residents with a gross income of up to Dh3 million in the tax period ending on or before December 31, 2026.