Insights · UAE Compliance
UAE Corporate Tax Return: Due Dates, Late Filing Penalties and the 14% Late Payment Charge
UAE corporate tax return due dates by year end, the late filing and late payment penalties, the late registration waiver and a plan for filing on time.
A UAE corporate tax return, and the tax it shows, are due within nine months of the end of the tax period. For a company with a 31 December year end, the return for 2025 is due by 30 September 2026. Filing late costs AED 500 a month for the first year and AED 1,000 a month after that. Paying late costs 14% a year on the unpaid tax, charged monthly, with no cap. And a company that registered late can still have its AED 10,000 registration penalty waived, but only if it files its first return within seven months of the end of its first tax period.
Key points
- Return and payment: within nine months after the end of the tax period
- Late filing: AED 500 for each month or part of a month in the first 12 months, AED 1,000 a month after that
- Late payment: 14% a year on the unpaid tax, accrued monthly, from the day after the due date
- Late registration: AED 10,000, waived if the first return is filed within seven months of the end of the first tax period
- Small Business Relief is available only for tax periods ending on or before 31 December 2026
Due dates by year end
| Tax period ends | Return and payment due | Late registration waiver window closes |
|---|---|---|
| 31 December 2025 | 30 September 2026 | 31 July 2026 (first period only) |
| 31 March 2026 | 31 December 2026 | 31 October 2026 (first period only) |
| 30 June 2026 | 31 March 2027 | 31 January 2027 (first period only) |
| 31 December 2026 | 30 September 2027 | 31 July 2027 (first period only) |
A company that changes its financial year, or whose first period is longer or shorter than twelve months, should confirm the period with the Federal Tax Authority before relying on this table.
The penalties in detail
| Failure | Penalty | Source |
|---|---|---|
| Return filed late | AED 500 a month for months 1 to 12; AED 1,000 a month from month 13 | Cabinet Decision No. 75 of 2023 |
| Tax paid late | 14% a year on the unpaid tax, charged monthly | Cabinet Decision No. 75 of 2023 |
| Registration applied for late | AED 10,000, with a waiver if the first return is filed within seven months | Federal Tax Authority waiver scheme |
| Tax on a voluntary disclosure not paid in time | 14% a year on the unpaid tax from the due date (20 business days after the disclosure) | Cabinet Decision No. 75 of 2023, as amended |
The 14% basis for corporate tax has applied since the penalty regime began in August 2023. From 14 April 2026, Cabinet Decision No. 129 of 2025 moved VAT and excise tax late payment onto the same 14% basis, replacing the old 2% plus 4% a month formula. Any guide still quoting 2% and 4% for UAE late payment is out of date.
A worked example: a company owes AED 90,000 and pays four months late. The late payment penalty is AED 90,000 × 14% × 4 ÷ 12, which is AED 4,200. If the return was also four months late, add AED 2,000 of late filing penalty.
What the return contains
- Financial statements. Audited statements are required where revenue exceeds AED 50 million and for every Qualifying Free Zone Person, whatever its size
- Adjustments from accounting profit to taxable income: exempt income, non-deductible expenses, interest limitation, transfer pricing adjustments
- The Small Business Relief election, for resident persons with revenue of AED 3 million or less, for periods ending by 31 December 2026
- For free-zone companies, the qualifying and non-qualifying income split and the de minimis test
- The transfer pricing disclosure form, where related-party transactions exceed AED 40 million, with a separate schedule for payments to connected persons above AED 500,000. See UAE transfer pricing thresholds
Getting ahead of the deadline
- Close the books within three months of year end and start the audit early if one is needed. Most late returns we see are late because the audit was.
- Decide elections before drafting the return: Small Business Relief, tax group, realisation basis, and free-zone status.
- Reconcile related-party figures across the ledger, the financial statements and the disclosure form.
- Fund the tax before the due date. The 14% charge runs on unpaid tax even while an objection is pending.
- Correct errors through a voluntary disclosure as soon as they are found. Penalties are lower before a tax audit notice.
For Indian-owned UAE companies
The UAE return and the Indian parent’s return use different years and different rules, and they meet in two places. Transactions with the Indian parent are related-party transactions in both countries, so the prices in the UAE return must match the Indian transfer pricing documentation. And the UAE company’s place of effective management must be in the UAE if it is to stay outside Indian tax. We explain both in UAE corporate tax for Indian businesses and POEM risk for Dubai companies.
Our UAE corporate tax team prepares and files returns and handles voluntary disclosures and penalty reconsideration requests. To estimate the tax itself, use our UAE corporate tax calculator.