UAE Corporate Tax Registration Penalty in 2026: The AED 10,000 Fine, Deadlines, the Waiver and Other Penalties

The UAE imposes an administrative penalty of AED 10,000 for late corporate tax registration, as of October 2026. It applies when a taxable person misses the registration deadline the FTA sets, which for a company or free zone person established on or after 1 March 2024 is three months from incorporation. The FTA has also run a waiver that removes the penalty if the first return is filed within seven months of the end of the first tax period. This page sets out the deadlines, the waiver conditions, the other corporate tax penalties and a step-by-step plan if you are late.

What is the corporate tax late registration penalty?

The FTA's registration page states that an administrative penalty of AED 10,000 is imposed for late registration for Corporate Tax. The legal basis is Cabinet Decision 75 of 2023, whose penalty table lists the failure of a taxable person to submit a registration application within the timeframe the FTA specifies, at AED 10,000. That item was added by Cabinet Decision 10 of 2024.

It is a fixed penalty. The table does not make it larger for each month of delay, which is different from the monthly penalties for late returns below.

What is the registration deadline?

FTA Decision 3 of 2024, effective 1 March 2024, sets the deadlines. For a business starting up now, the rows that matter are these:

The Decision also set a table for companies that already existed on 1 March 2024, with deadlines running from 31 May 2024 to 31 December 2024 by month of license issue. Those dates have passed. For natural persons, the FTA's registration page says the threshold is turnover that exceeds AED 1 million within a calendar year, and it excludes salary, personal investment income and real estate investment income.

Does the FTA waive the penalty?

Yes, under conditions. In a news release dated 7 May 2025, the FTA said a taxable person is exempt from the AED 10,000 late registration penalty if it submits its first tax return or annual declaration within seven months from the end of its first tax period, instead of the usual nine months. The release lists three cases:

• You registered late and were penalised but have not paid: file within the seven months and the penalty is not payable.
• You registered late and already paid: file within the same window and the payment is refunded to your tax account.
• You have not registered at all: register promptly, then file the first return within seven months of the end of the first tax period.

The release states that the seven-month condition applies only to the first tax period. It does not say the waiver covers any later period or any other penalty. Check the FTA site for the current status before you rely on it, because it is a decision the FTA can change.

Worked example: a free zone seller who registers late

This is illustrative. A free zone company is licensed on 15 January 2026. Under the three-month rule its deadline is 15 April 2026. It applies on 20 June 2026. Its financial year is the calendar year, so its first tax period runs to 31 December 2026. The AED 10,000 penalty is charged for the late application. The waiver condition is a first return filed within seven months of 31 December 2026, which means by 31 July 2027, instead of the usual nine months. If the company files by that date, the penalty is waived or refunded. If it files after 31 July 2027, the penalty stands. The company still owes any corporate tax due and the other penalties below if the return or payment is late.

What are the other corporate tax penalties?

These are from the corporate tax penalty table, Cabinet Decision 75 of 2023 as amended:

For the filing deadline, the FTA's news item on its registration page says 30 September 2026 is the deadline for filing returns and paying corporate tax for the financial year ended 31 December 2025. That matches the nine months after year end that the waiver release refers to.

What should you do if you are already late?

1. Check your license date and work out your deadline from the table above.
2. Register now on the FTA's EmaraTax portal. The penalty is for the application, so waiting does not reduce it, and the waiver needs a registration.
3. Find your first tax period. Your financial year, not the registration date, decides when it ends.
4. Diarise the seven-month date from the end of that period for your first return.
5. Keep the records the return needs. The record-keeping penalty is separate and heavier.
6. Ask a registered tax agent to confirm whether the waiver still applies to you.

If you are also late for VAT, that is a different penalty with its own rules: see late VAT registration penalty.

FAQ

How much is the corporate tax registration penalty in the UAE? The FTA states the administrative penalty for late corporate tax registration is AED 10,000, listed in Cabinet Decision 75 of 2023.

When must a new UAE company register for corporate tax? A company or free zone person incorporated, established or recognised on or after 1 March 2024 must apply within three months of that date.

Can the AED 10,000 penalty be cancelled? The FTA waives it if the first return or declaration is filed within seven months of the end of the first tax period, and it refunds or credits a penalty already paid. The waiver applies only to the first tax period.

Do free zone companies have to register for corporate tax even at 0%? Yes. FTA Decision 3 of 2024 names the free zone person among the juridical persons that must apply within three months of establishment. A 0% outcome on qualifying income does not remove the duty to register. See free zone corporate tax for sellers.

Does a sole trader or e-trader license holder need to register? Natural persons must register if their business turnover exceeds AED 1 million in a calendar year, per the FTA's registration page. Below that, registration is not required on turnover grounds.

What if my turnover is below the small business relief limit? Relief affects how much tax you pay; it does not remove the registration duty. See small business relief.

Is the corporate tax registration penalty the same as the VAT one? No. They are separate registrations with separate deadlines and separate penalty tables. A company that is late for one can be on time for the other, so check each deadline on its own.

This is general information, not tax or legal advice. Confirm your position with the Federal Tax Authority or a registered tax agent.

What to do next

Write down your license date, your financial year end and the date seven months after your first tax period ends, and give them to your tax agent. If you sell on marketplaces, keep monthly sales and fee reports so the first return is quick. Blooprint, an Amazon SPN verified partner, offers Amazon.ae account management and noon account management once your company is set up.