UAE Implements Dh10,000 Fine for Delinquent Corporate Tax Registrations



In a recent declaration, the UAE Ministry of Finance has mandated a significant Dh10,000 administrative fine for businesses that delay their Corporate Tax registration. This initiative, unveiled on Tuesday, targets firms that miss the registration deadline set by the Federal Tax Authority. The move seeks to enhance compliance with the nation's tax regulations, ensuring that companies adhere to their fiscal responsibilities promptly.

This newly introduced penalty is part of a broader effort to standardize the consequences of late tax registrations across different categories, including Corporate Tax, Excise Tax, and Value-Added Tax (VAT). The decision underscores the government's commitment to maintaining a streamlined tax administration system that encourages timely participation from the corporate sector.

Reflecting on the policy, the Ministry stated, "Aligning the late registration penalty for Corporate Tax with those of Excise Tax and VAT emphasizes our dedication to a consistent tax framework. This approach ensures that businesses understand the importance of adherence to tax obligations within the specified timelines."

The policy change is encapsulated in Cabinet Decision No. 10 of 2024, which revises the existing schedule of violations and administrative penalties under Cabinet Decision No. 75 of 2023. These amendments, pertinent to the Federal Decree-Law No. 47 of 2022 concerning the taxation of corporations and business entities, are slated to be effective from March 1, 2024.

This development is a critical reminder for businesses operating in the UAE to stay vigilant with their tax registration processes. The imposition of a Dh10,000 penalty for late registrations signals the government's firm stance on tax compliance, aiming to foster a culture of prompt and responsible tax participation among the corporate community. Companies are advised to review their tax affairs and ensure compliance with the registration requirements to avoid the stipulated penalties.

News source: Gulf News official Website.