Corporate Tax penalty calculator: late filing and payment.

Estimates only, based on the rules in force on 29 September 2026. They are not tax advice and do not replace the figures in EmaraTax.

How it works

• Penalties come from the schedule annexed to Cabinet Decision No. 75 of 2023 and start the day after the deadline.
• Late filing: AED 500 for each month or part month for the first 12 months, then AED 1,000 for each month or part month. Filing one day late costs the same as filing a month late.
• Late payment: 14% a year on the unpaid tax, charged for each month or part month from the day after the due date. This rate has applied to Corporate Tax since 1 August 2023.
• The calculator assumes the unpaid amount stays the same until it is paid in full. Part payments reduce the penalty; EmaraTax shows the exact figure.
• Other penalties, such as for incorrect returns or late registration, are not included. See the Corporate Tax penalties guide.

Worked example

A company's return and AED 120,000 of tax were due on 30 September 2026. It files and pays three months late, on 15 December 2026.

Late filing: 3 months at AED 500	1,500
Late payment: 120,000 x 14% / 12	1,400 a month
Late payment for 3 months	4,200
Estimated penalties	5,700

Both penalties run by the month or part month, so a few days' delay into a new month adds a full month.

Frequently asked questions

Can penalties be reduced?

You can ask the FTA to reconsider a penalty decision within 40 business days of being notified, with reasons, through EmaraTax.

Is there a penalty if the return is filed on time but the tax is paid late?

Yes. Only the late payment penalty applies in that case.

Do VAT penalties work the same way?

Not exactly. VAT late filing is a fixed AED 1,000, or AED 2,000 for a repeat within 24 months. Use the VAT penalty calculator.

Related terms and guides

Voluntary disclosure · Taxable person · Record retention. Full guide: UAE Corporate Tax Penalties: What They Are and How to Stay Clear of Them. More free tools: UAE tax tools.