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Ministry of Finance in UAE Introduces Dh10,000 Penalty for Late Corporate Tax Registration

CORPORATE TAXFTAUAE TAX | Feb 28, 2024 AT 05:30 AM IST

Effective March 1st: Cabinet Decision No. 10 of 2024 Takes Effect in the UAE

The Ministry of Finance announced Tuesday that companies failing to register for UAE Corporate Tax within the specified timelines by the Federal Tax Authority will face an administrative penalty of Dh10,000. The penalty is aimed at promoting compliance with tax regulations by ensuring timely Corporate Tax registration.

FTA has introduced the timeline to register the corporate tax for business owners.

"The penalty for late tax registration is in line with penalties for late registration for excise tax and value-added tax (VAT)," the statement noted.

The Ministry of Finance revealed the issuance of Cabinet Decision No. 10 of 2024, which revises the schedule of violations and administrative penalties outlined in Cabinet Decision No. 75 of 2023. This decision addresses violations related to the application of Federal Decree-Law No. 47 of 2022 on corporate and business taxation. Cabinet Decision No. 10 of 2024 will become effective on March 1, 2024.