Attached list includes violations and fines attached to Cabinet Decision No. (75) of 2023 related to “Fines for Violations Under Federal Decree-Law No. (47) of 2022 on Corporate Tax”
| Details of the Offense | Fine Payable (AED) |
| 1. Not having the documents and records as required according to the Tax Procedures Law or Company Tax Law. | One of the following penalties shall apply:
AED 10,000 per violation. AED 20,000 for repeated violations within 24 months. |
| 2.Failing to hand over or submit your tax related documents in Arabic when requested by the Authority. | AED 5,000 |
| 3.Not meeting the deadline outlined in the Company Tax Law when applying for deregistration. | A fine of AED 1,000 applies for late applications, with an additional AED 1,000 charged monthly, up to a maximum of AED 10,000. |
| 4. Not informing the Authority of any modifications that affect the tax record. | AED 1,000 per violation.
AED 5,000 for recurrent infractions within a 24-month period. |
| 5.If a legal representative does not notify the Authority of their appointment within the required time. | AED 1,000 |
| 6.Failure by the legal representative to file taxes on the required deadline, fines will be applied to them. | During the first 12 months, you need to pay AED 500 (or a portion of it) every month.
Beginning in the thirteenth month, AED 1,000 a month (or a portion of it) should be paid. Penalty comes into effect from the day right after the submission deadline and is charged each month. |
| 7.Failing to submit the Tax Return within the time period outlined by Company Tax Law. | During the first 12 months, AED 500 per month (or part thereof).
Beginning in the thirteenth month, AED 1,000 a month (or a portion of it) shall be paid. Penalty applies from the day following the submission deadline and recurs monthly. |
| 8.Failure of the Taxable Person to pay the Payable Tax.
|
Charge of 14% every month, starting the day following the due date.
Payment must be made within: a. 20 business days from the submission date (in case of voluntary disclosure); b. 20 business days from receipt of information (in case of tax assessment). |
| 9. The Tax Return submitted by the registrant is inaccurate. | AED 500 will be charged, unless the person makes the necessary adjustments to the Tax Return before the deadline according to the Company Tax Law. |
| 10.Submitting a voluntary disclosure for errors in tax returns, tax assessments, or refund applications, according to Clauses (1) and (2) of Article (10) of the Tax Procedures Law. | From the day after the due date of your tax-related documents, a 1% monthly penalty on the tax difference applies from the due date until the Voluntary Disclosure is submitted. |
| 11. Failure to submit a Voluntary Disclosure before being informed about a tax audit. | The cost of the fixed fine is 15% of the tax difference
1% fine will apply each month or part thereof. Applicable in the following cases: a) Upon receipt of a tax audit notification, penalties start from the due date and ends when the company submits its disclosure agreement. b) From the due date, a penalty will be applied until the Authority issues a Tax Assessment. |
| 12. Failure to cooperate with a Tax Auditor, as required in Article (20) of the Tax Procedures Law, the person, their legal representative or their tax agent will be required to pay penalties. | AED 20,000 |
| 13.Not providing the Authority with necessary declarations on time, as required in accordance with the Company Tax Law. | AED 500 per month (or part thereof) for the first 12 months, increasing to AED 1,000 thereafter.
Beginning in the thirteenth month, AED 1,000 a month (or a portion of it) should be paid.
The penalty applies from the day after the deadline and recurs monthly until submission on the same date. |
| 14.Failing to submit tax registration application within the deadline provided by the Authority. | AED 10,000 |
