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UAE announces US$2,722 penalty for late corporate tax registration

The amended decision will come into effect from March 1 2024.
  • A penalty of US$2,722 (AED10,000) will be imposed on businesses that do not submit their Corporate Tax registration applications on time.
  • The penalty was implemented to prompt taxpayer compliance with laws through timely corporate tax registration.

ABU DHABI, UAE – The Ministry of Finance on Tuesday announced the issuance of Cabinet Decision No. 10 of 2024 and this will come into effect on March 1 2024.

The Cabinet Decision No. 10 of 2024 amended the schedule of violations and administrative penalties of Cabinet Decision No. 75 of 2023 on the administrative penalties for violations related to the application of Federal Decree-Law No. 47 of 2022 on the taxation of corporations and businesses.

The ministry said that an administrative penalty of US$2,722 (AED10,000) for late registration will be imposed on businesses that do not submit their corporate tax registration applications within the timelines specified by the Federal Tax Authority.

The penalty was implemented to prompt taxpayer compliance with tax laws through timely corporate tax registration, with the penalty amount matching those for late excise and value added tax registration.