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✓ Last verified: 30 September 2026 · Federal Decree-Law No. 47 of 2022, Arts. 48, 53, 54 · Cabinet Decision No. 75 of 2023 as amended by Cabinet Decision No. 10 of 2024 · Ministerial Decision No. 84 of 2025 · FTA

A return with no tax on it still costs AED 500 a month once it is late.

If your company's financial year ended on 31 December 2025, its Corporate Tax return and any tax due were both owed to the Federal Tax Authority by Wednesday 30 September 2026. The FTA did not move the date. From 1 October 2026 a return that has not been filed is late, and the penalty clock runs by the month. This guide covers what a late return and late payment cost, and three points that summaries usually get wrong: the late-filing penalty applies whether or not tax is due, an error in a filed return can no longer be corrected for free, and the late-registration waiver many companies were counting on applies only to their first tax period.

Two deadlines, and they fall on the same day

The Corporate Tax Law sets out filing and payment as two separate obligations in two separate articles:

Article 53(1): a Taxable Person "must file a Tax Return … no later than (9) nine months from the end of the relevant Tax Period, or by such other date as directed by the Authority."
Article 48: a Taxable Person "must settle the Corporate Tax Payable … within (9) nine months from the end of the relevant Tax Period, or by such other date as determined by the Authority."

For a tax period ending 31 December 2025, nine months later is 30 September 2026. On 3 August 2026 the FTA put it in one sentence: those with financial years ending 31 December 2025 must "submit their Corporate Tax returns and settle any Corporate Tax due no later than 30 September 2026". Both articles allow the Authority to set a different date. It did not. On 26 September 2026 the FTA restated 30 September as the deadline for the last time, and no extension was announced before the date passed.

A note on which return this is. Corporate Tax applies to tax periods starting on or after 1 June 2023. So a calendar-year company that was already trading in 2023 had its first tax period in 2024 and filed its first return by 30 September 2025. For most calendar-year companies, the return due on 30 September 2026 is their second. It is a first return only for companies whose first tax period ended on 31 December 2025. That matters for the waiver discussed below.

Because filing and payment are separate obligations, they carry separate penalties. You can be late on one and on time with the other. If you are late with both, both penalties apply.

The penalties, as the Cabinet Decision sets them out

Corporate Tax penalties are not in the Corporate Tax Law. They are in the table attached to Cabinet Decision No. 75 of 2023, which took effect on 1 August 2023, and Cabinet Decision No. 10 of 2024 added a fourteenth row from 1 March 2024. Cabinet Decision No. 129 of 2025, which rewrote the VAT and Excise penalties from 14 April 2026, did not change this table. Corporate Tax penalties are still charged under Decision 75. The rows relevant to a return due this month are:

RowViolationPenalty
7Registrant does not submit a Tax Return on timeAED 500 for each month or part of a month for the first 12 months, then AED 1,000 for each month or part of a month. Charged from the day after the deadline, then on the same date each month.
8Taxable Person does not pay the Payable Tax14% a year, charged monthly for each month or part of a month on the unpaid tax, from the day after the due date and then on the same date each month
9Registrant submits an incorrect Tax ReturnAED 500, unless corrected before the return deadline
10Voluntary Disclosure of an error in a return1% of the tax difference for each month or part of a month, from the day after the return's due date until the disclosure is made
11No Voluntary Disclosure before the Authority gives notice of a Tax AuditA fixed 15% of the tax difference, plus 1% a month
1Required records not keptAED 10,000; AED 20,000 for a repeat within 24 months
14Late Tax Registration applicationAED 10,000

The late-filing penalty does not depend on how much tax is due

Row 7 is a fixed amount for each month and does not refer to tax at all. It applies to a Registrant who does not submit a return on time. A company with a loss, a company whose profit sits entirely within the AED 375,000 band taxed at 0%, and a company claiming Small Business Relief all pay the same AED 500 a month if the return is late. On 3 August 2026 the FTA said, specifically about Small Business Relief, that eligibility "does not remove the obligation to file a Corporate Tax return". A nil return filed on 20 October carries the same penalty as a return showing tax.

The penalty is charged on a monthly date. The first AED 500 arises on 1 October 2026, the day after the deadline, and each later AED 500 on the 1st of the following months. The rate rises to AED 1,000 a month from the thirteenth month. Article 3 of the Decision covers dates that do not exist in a given month by moving that month's charge to its last day. Row 7 has no cap. Row 3 (late deregistration) is capped at AED 10,000, but row 7 is not.

Return filedMonthly charges triggeredLate-filing penalty
By 30 September 2026NoneAED 0
Between 1 and 31 October 20261 OctAED 500
10 November 20261 Oct, 1 NovAED 1,000
By 30 September 202712 charges at AED 500AED 6,000
By 30 September 202812 × AED 500 + 12 × AED 1,000AED 18,000

This table is our own illustration of the "each month or part thereof … on the same date monthly thereafter" wording in rows 7 and 8, not an FTA example. We read a return filed during October as falling within the first month. Whether a return filed exactly on 1 November attracts a second charge depends on how the Authority times that day's charge, so do not file on the boundary date.

Late payment: 14% a year, charged monthly

Row 8 is charged on unpaid tax, not on the return. It is 14% a year, applied for each month or part of a month. In practice that works out to one twelfth of 14%, about 1.17%, charged each month on whatever tax remains unpaid, starting on 1 October 2026. The row says the charge is on "the unsettled Payable Tax amount". It does not say the charge applies to penalties already imposed, and the table sets no ceiling.

Take a company with AED 875,000 of taxable income. Its tax is 9% × (875,000 − 375,000) = AED 45,000.

ScenarioLate filing (row 7)Late payment (row 8)Total penalties
Filed and paid by 30 SeptemberAED 0AED 0AED 0
Filed by 30 September, paid on 20 OctoberAED 045,000 × 14% ÷ 12 = AED 525AED 525
Filed and paid on 10 NovemberAED 1,0002 × AED 525 = AED 1,050AED 2,050
Filed and paid on 25 September 2027AED 6,00012 × AED 525 = AED 6,300AED 12,300

These are our own figures, calculated from rows 7 and 8, and they are not an official example. They assume that each monthly late-payment charge is based on the tax still unpaid on that date. If you pay part of the tax, the charges on the remaining balance get smaller.

The second row of that table matters most in practice. The two obligations are independent, so the cheapest mistake is to file on time and pay late. If the return went in by 30 September and only the cash is missing, row 7 does not apply at all, and the late-payment charge on a return filed on time runs at about 1.17% a month.

If the return itself is still not filed, the same logic now runs by the month. Row 7 charges AED 500 for each month or part of a month, charged from the day after the deadline and then on the same date each month. On our reading of that wording, a return filed on 2 October and a return filed on 30 October both carry one charge of AED 500, and a return filed on 1 November carries two. Nothing is gained by delaying inside a month, and the next charge lands on the first of the following month. If the cash for the tax is not ready, that is a reason to file now, not a reason to wait: the return can go in without the payment.

Errors in a filed return: what changed on 1 October

Row 9 charges AED 500 for an incorrect return, "unless the Person corrects his Tax Return before the expiry of the deadline for the submission of the Tax Return". Until 30 September, correcting a return you had already filed cost nothing. That window is closed.

From 1 October the charges change. The route for correcting an error is now a Voluntary Disclosure under Article 10 of the Tax Procedures Law, and three rows apply:

  • Row 10: 1% of the tax difference for each month or part of a month, from the day after the return's original due date until you make the disclosure. An underpayment found in March 2027 has already accrued about six months by then.
  • Row 8(2)(a): for a disclosure, the payment due date for the extra tax is 20 business days after you submit it. Late-payment charges on the difference start only after that.
  • Row 11: if the Authority gives notice of a Tax Audit before you disclose, a fixed 15% of the difference is added, and the 1% monthly charge runs up to the date of disclosure or, if you do not disclose, to the date of the assessment.

So the cost of the same error depends on when you correct it. It was nothing before 30 September. Now it is 1% a month, and 15% plus 1% a month once an audit notice arrives first. If you know of an error in a return that is already filed, disclose it now: the 1% is charged for each month or part of a month since 30 September, so a disclosure in October costs one month and a disclosure in November costs two.

Audited accounts: the first year under the new rules

Article 54(2) of the Corporate Tax Law allows the Minister to require some taxpayers to keep audited financial statements. For tax periods starting on or after 1 January 2025, the requirement comes from Ministerial Decision No. 84 of 2025, which replaced Ministerial Decision No. 82 of 2023. A calendar-year 2025 return is therefore the first one under the new decision. Article 2 of Decision 84 lists three categories:

  • A Taxable Person that is not a Tax Group and has Revenue above AED 50,000,000 in the tax period.
  • Every Qualifying Free Zone Person, whatever its revenue.
  • Every Tax Group, which must keep audited special purpose financial statements in the form the Authority specifies. Under Decision 82 this applied only above the revenue threshold. Under Decision 84 it applies to every group.

For a non-resident, only Revenue earned through a Permanent Establishment or nexus in the UAE counts towards the AED 50 million. If your company is in any of these categories and the audit was not signed in time, the return is late all the same: the law sets no separate deadline for audited filers. File as soon as the audit is signed, because the late-filing penalty runs by the month, not by the day. If you do not need an audit, Article 53(3) still lets the Authority ask for any information reasonably required, and row 1 (AED 10,000 for records not kept) applies to everyone.

The late-registration waiver probably does not apply to you

Filing late here is a separate matter from registering late. Row 14 charges AED 10,000 for a late Tax Registration application. The FTA's waiver initiative cancels that penalty, or refunds it as an EmaraTax credit if it has already been paid, where the Taxable Person files the return within seven months of the end of its first Tax Period instead of nine. The FTA applies it automatically, and its May 2026 update gives no end date.

Two limits apply, and together they rule out most calendar-year companies. First, the waiver covers only the first tax period. For a calendar-year company that was already trading, that period ended on 31 December 2024 and its seven-month window closed on 31 July 2025. Second, even a company whose first period ended on 31 December 2025 had a window that closed on 31 July 2026. Filing by 30 September met the normal deadline but did not reinstate the waiver, and filing after it does not either.

The companies that can still use the waiver are those whose first tax period ended recently. A first period ending on 28 February 2026 had a seven-month window to 30 September 2026, now closed. A first period ending on 31 March 2026 has a window to 31 October 2026, against a normal deadline of 31 December 2026; one ending on 30 April 2026 has until 30 November 2026. That is our own arithmetic from the FTA's stated condition. For such a company, filing two months early saves AED 10,000.

If a penalty has already been imposed

Two routes are available through EmaraTax. A reconsideration request challenges the decision itself and must be submitted within 40 business days of being notified of it. The FTA's service page says the Authority may take 45 business days to reply, and it can extend that. A waiver or instalment request is a separate service, used when you accept the penalty but ask for it to be reduced or paid over time. The FTA gives itself up to 110 business days to decide. Neither route stops the late-payment charge from continuing on tax you have not paid, so pay the tax first and dispute the penalty afterwards.

If the return is not filed yet: what to do now

  • Confirm your tax period. If it ended on 31 December 2025, your deadline was 30 September 2026 and the return has been late since 1 October. If it ended on another date, add nine months to that date.
  • Check whether you need an audit under Decision 84: revenue over AED 50 million, QFZP status, or membership of a Tax Group.
  • Decide on Small Business Relief if you are eligible. You make the election in the return, and it is not the right choice in a loss year. Our guide explains why.
  • File even if you cannot pay yet. Every month or part of a month adds AED 500 to the late-filing penalty; the payment can follow, at about 1.17% of the unpaid tax each month.
  • File before the first of next month. On our reading of row 7, the second AED 500 is charged on 1 November, the third on 1 December.
  • Disclose known errors in a filed return now, through Voluntary Disclosure, because the 1% monthly charge is counted from 30 September and grows with every month you wait.
  • Keep the records that support the return. The obligation to keep them does not end once the return is filed.

Frequently asked questions

When was the UAE corporate tax return due in 2026?

Within nine months of the end of the tax period, under Article 53(1) of Federal Decree-Law No. 47 of 2022. For a financial year ending 31 December 2025, the return and any tax due were both due by 30 September 2026, as the FTA confirmed on 3 August and again on 26 September 2026. That date has passed; a return filed now is late. Payment has its own nine-month deadline under Article 48.

I missed the 30 September 2026 deadline. What do I do now?

File the return as soon as you can, even if the tax cannot be paid yet. The late-filing penalty is AED 500 for each month or part of a month, so a return filed anywhere in October carries one charge and one filed on 1 November carries two. Pay the tax when you can; unpaid tax accrues about 1.17% a month on top. If you already filed and the return contains an error, correct it by Voluntary Disclosure now rather than later, because that penalty is 1% of the difference per month from 30 September.

What is the penalty for filing a UAE corporate tax return late?

Under row 7 of the table annexed to Cabinet Decision No. 75 of 2023, AED 500 for each month or part of a month for the first twelve months, then AED 1,000 for each month or part of a month from the thirteenth month. It is charged from the day after the deadline and then on the same date each month, and there is no cap.

Do I pay a late-filing penalty if I owe no corporate tax?

Yes. The late-filing penalty is a fixed monthly amount that does not depend on the tax due. A loss-making company, a company with profit only in the 0% band, and a company claiming Small Business Relief all pay AED 500 a month if their return is late. The FTA has confirmed that Small Business Relief does not remove the obligation to file.

What is the penalty for paying UAE corporate tax late?

14% a year, charged monthly for each month or part of a month on the unpaid Payable Tax, from the day after the due date and then on the same date each month (row 8 of Cabinet Decision No. 75 of 2023). That is about 1.17% of the unpaid tax each month. The row sets no ceiling.

Should I file on time if I cannot pay the tax yet?

Yes. Filing and payment are separate obligations with separate penalties. Filing on time avoids the late-filing penalty completely, leaving only the late-payment charge of about 1.17% a month on the unpaid tax until you pay.

What happens if I find a mistake in a corporate tax return I have already filed?

Correct it before the filing deadline and there is no penalty: row 9 of Cabinet Decision No. 75 of 2023 charges AED 500 for an incorrect return "unless the Person corrects his Tax Return before the expiry of the deadline". After the deadline you correct it by Voluntary Disclosure, which carries 1% of the tax difference for each month since the original due date. If the Authority gives notice of a Tax Audit before you disclose, a fixed 15% of the difference is added.

Has Cabinet Decision 129 of 2025 changed corporate tax penalties?

No. Cabinet Decision No. 129 of 2025 revised the administrative penalties for the Tax Procedures, VAT and Excise Tax laws from 14 April 2026. Corporate Tax penalties are still set by Cabinet Decision No. 75 of 2023, as amended by Cabinet Decision No. 10 of 2024.

Does my company need audited financial statements to file its corporate tax return?

For tax periods starting on or after 1 January 2025, Ministerial Decision No. 84 of 2025 requires audited financial statements from a Taxable Person that is not a Tax Group with Revenue above AED 50 million, and from every Qualifying Free Zone Person. Every Tax Group, whatever its revenue, must keep audited special purpose financial statements. For earlier periods, Ministerial Decision No. 82 of 2023 still applies.

Can I still get the AED 10,000 late-registration penalty waived?

Only if you file the return for your first tax period within seven months of that period's end. For a calendar-year company that was already trading, the first period ended on 31 December 2024 and the window closed on 31 July 2025. For a first period ending 31 December 2025, it closed on 31 July 2026. A company whose first period ended on 28 February 2026 had until 30 September 2026; one whose first period ended on 31 March 2026 can still qualify by filing by 31 October 2026 (our own arithmetic from the FTA's seven-month condition).

How do I challenge a corporate tax penalty?

Submit a reconsideration request through EmaraTax within 40 business days of being notified of the decision. If you accept the penalty but want it reduced or paid in instalments, use the separate waiver or instalment request service. Neither route stops the late-payment charge on tax that remains unpaid.

Did the FTA extend the 30 September 2026 deadline?

No. Articles 48 and 53 allow the Authority to set another date, but the FTA restated 30 September 2026 on 3 August and again on 26 September 2026, and no extension was announced before the date passed. We checked the FTA news page and the Ministry of Finance legislation list on 30 September 2026.

Sources

Updated 30 September 2026: rewritten for the day the deadline passed. On 30 September we checked the FTA news page (last item: the 26 September reminder, no extension) and the Ministry of Finance legislation list (no new Corporate Tax decision since Ministerial Decision No. 131 of 2026). The 1 October reading of row 7 and the 31 March 2026 waiver arithmetic added today are our own. Verified 23 September 2026. On that date we downloaded and read in full the Corporate Tax Law (Arts. 48, 53 and 54), Cabinet Decision No. 75 of 2023 in its original 2023 form and in the Ministry of Finance's consolidated version with Cabinet Decision No. 10 of 2024, and Ministerial Decision No. 84 of 2025. The penalty wording quoted here comes from those texts. We also checked the Ministry of Finance legislation list, updated that morning, and it showed no 2026 amendment to Decision 75. Four things in this guide are our own work, and each is marked where it appears: the monthly schedule of late-filing penalties, the worked late-payment example, the reading that a return filed within October falls within the first month, and the observation about which first tax periods still fall inside the waiver window. The deadline, waiver and reconsideration details come from FTA pages. Correction made this round: our Small Business Relief guide previously described companies with a tax period ending 31 December 2025 as filing their first return. For most calendar-year companies it is their second, because their first period was 2024, and that guide has been corrected. Nothing here is advice on your own position. If your return is late, contact a registered tax agent or the Authority now rather than next month.

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