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FTA penalty waiver support
A Federal Tax Authority (FTA) penalty is published to the dirham, and some can be waived or refunded. We check which one you have, what it costs and what your options are.
- AED 10,000 late registration penalty can be waived
- Already paid? It may be refunded to your tax account
- The FTA decides. We never promise an outcome
Check your penalty
Which penalty did you receive?
Late corporate tax registration carries a fixed AED 10,000 penalty. An FTA initiative waives it, or refunds it if you already paid, when your first tax return is filed within 7 months of the end of your first tax period.
- Penalty
- AED 10,000
- Waiver condition
- File within 7 months
- Our fee
- AED 2,000
Amounts come from the published Cabinet Decision schedules; whether a penalty is waived or reduced is always the FTA's decision.
FTA penalties, in brief.
FTA administrative penalties are fixed fines and percentage charges set by Cabinet Decision for corporate tax, VAT and excise violations such as late registration, late filing and late payment. An FTA initiative waives or refunds the AED 10,000 late corporate tax registration penalty when the first tax return is filed within 7 months of the end of the first tax period.
Any business that has received a penalty, or has missed a registration or filing deadline, should check its position. My Eloah Business Hub identifies the exact penalty, checks whether the waiver applies and prepares and submits a formal reconsideration request to the FTA.
- Authority
- Federal Tax Authority (FTA)
- Portal
- EmaraTax
- Waiver window
- 7 months from the end of the first tax period
- Our fee
- AED 2,000 on a AED 10,000 late registration penalty
The four penalties we see most.
Fixed penalties are easy to read. The monthly and percentage ones keep growing until you act.
Late registration
Failing to apply for corporate tax or VAT registration in the FTA's timeframe carries a fixed AED 10,000 penalty.
Late corporate tax return
AED 500 a month for the first 12 months, then AED 1,000 a month from month 13, with no cap. A return 18 months late costs AED 12,000.
Late payment of tax
Unpaid corporate tax or VAT is charged 14% per annum, applied monthly on the unsettled amount.
Errors found at audit
A Voluntary Disclosure costs 1% a month on the tax difference. If you have not disclosed before the FTA notifies you of an audit, a fixed 15% is added.
Corporate tax and VAT penalties, side by side.
The same violation can cost very different amounts under each tax. These are the published figures.
| Violation | Corporate tax | VAT and excise |
|---|---|---|
| Late registration application | AED 10,000 | AED 10,000 |
| Late tax return | AED 500 a month for 12 months, then AED 1,000 a month | AED 1,000 first time, AED 2,000 repeat within 24 months |
| Late payment of tax | 14% per annum, charged monthly | 14% per annum, charged monthly |
| Incorrect tax return | AED 500, unless corrected before the return deadline | AED 500, unless corrected within the deadline |
| Voluntary Disclosure of an error | 1% a month on the tax difference | 1% a month on the tax difference |
| No Voluntary Disclosure before audit notice | 15% fixed plus 1% a month | 15% fixed plus 1% a month |
| Records not kept | AED 10,000, repeat AED 20,000 within 24 months | AED 10,000, repeat AED 20,000 within 24 months |
| Late deregistration application | AED 1,000 a month, capped at AED 10,000 | AED 1,000 a month, capped at AED 10,000 |
| Not facilitating a tax auditor | AED 20,000 | AED 20,000 |
Corporate tax: Cabinet Decision 75 of 2023 as amended by Cabinet Decision 10 of 2024. VAT and excise: Cabinet Decision 40 of 2017 as amended by Cabinet Decisions 49 of 2021 and 129 of 2025, in force from 14 April 2026. VAT-only penalties include AED 2,500 per detected case for a late tax invoice or tax credit note and 50% of the unpaid tax on undeclared imports.
The AED 10,000 waiver, five scenarios.
The FTA waives the late corporate tax registration penalty when the tax return is filed within 7 months of the end of the first tax period. Businesses exempt from corporate tax file their annual declaration within 7 months of the end of the first financial year instead.
| Your situation | What to do | Outcome |
|---|---|---|
| Registered, penalty unpaid, return filed within 7 months | Nothing further | Penalty waived |
| Registered, penalty unpaid, return not yet filed | File the return or annual declaration within 7 months | Penalty waived |
| Registered, penalty already paid, return not yet filed | File within 7 months | Amount refunded to your tax account |
| Registered, penalty already paid, return filed within 7 months | Nothing further | Amount refunded to your tax account |
| Not registered at all | Register and file the return or declaration within 7 months | Penalty waived if imposed |
The window is 7 months, shorter than the usual 9-month corporate tax filing deadline. Everything runs through the FTA's EmaraTax portal.
Three routes to a lower penalty.
Which route applies depends on the tax, the violation and the dates. The FTA makes the final decision in every case.
Late registration initiative
Covers every entity required to register for corporate tax that has a late registration penalty or has not yet registered. File within 7 months and the AED 10,000 is waived or refunded.
Reconsideration request
We prepare and submit a formal reconsideration request to the FTA. The FTA may accept it, partly accept it or reject it, and conditions vary case by case.
Older VAT and excise balances
Cabinet Decision 49 of 2021 allowed unpaid VAT and excise penalties imposed before 28 June 2021 to be redetermined to 30% of the total where conditions were met.
Five steps from notice to request.
We work from your penalty notice and your EmaraTax record.
Start on WhatsApp →Send us the notice
Share the penalty notice on WhatsApp so we can see the tax, the amount and the date.
We identify the penalty
We match it to the right schedule and tell you whether it is fixed, per case, monthly or percentage based.
We check for a waiver
We test your dates against the 7-month late registration waiver and tell you which scenario you fall into.
We register, file or request
Where the waiver applies, the registration and return go in through EmaraTax inside the window; otherwise we prepare and submit a formal reconsideration request to the FTA.
The FTA decides
The FTA may waive the penalty, refund it to your tax account, reduce it or keep it in place.
FTA penalties, answered.
Ask anything else on WhatsApp and we will answer for your company.
How much is the corporate tax late registration penalty in the UAE?
AED 10,000. It is a fixed penalty for failing to submit a corporate tax registration application in the FTA's timeframe, set by Cabinet Decision 75 of 2023 as amended by Cabinet Decision 10 of 2024.
Can the AED 10,000 corporate tax late registration penalty be waived?
Yes, under an FTA initiative, if you file your tax return within 7 months of the end of your first tax period. Businesses exempt from corporate tax file their annual declaration within 7 months of the end of their first financial year.
I already paid the AED 10,000 penalty. Can I get it back?
Yes, if you meet the condition. Where the return is filed within 7 months of the end of the first tax period, the amount is refunded to your tax account in EmaraTax.
What is the penalty for filing a corporate tax return late?
AED 500 a month for the first 12 months, then AED 1,000 a month from month 13, with no cap. A return filed 18 months late costs AED 12,000.
What is the penalty for a late VAT return?
AED 1,000 the first time and AED 2,000 for a repeat within 24 months. It is a flat amount, unlike the monthly corporate tax penalty.
What is the penalty for paying tax late?
14% per annum, charged monthly on the unsettled amount. The same rate applies to corporate tax and VAT.
How much does My Eloah Business Hub charge for penalty waiver support?
For the AED 10,000 late corporate tax registration penalty our fee is 20% of the penalty, which is AED 2,000. The fee applies whatever the FTA decides. For other penalties, message us on WhatsApp for a quote.
Does My Eloah Business Hub guarantee the penalty will be waived?
No. The FTA makes the decision and may accept a request, partly accept it or reject it. We tell you where you stand before you start.
Related services
Got a penalty notice? Send it to us.
Message us on WhatsApp with the notice and we will tell you the amount, the legal basis and your options.