UAE tax penalty calculator
Estimate late-filing, late-payment and late-registration penalties for UAE Corporate Tax and VAT. The calculator applies the current FTA penalty formulas so you can size your exposure before you act.
This is an estimate, not a bill. Figures use the standard published penalty formulas and ignore waivers, instalments, exact day counts and prior-offence history. Always confirm your actual liability with the FTA or a tax specialist.
Your situation
Tax you owe but have not yet paid. Enter 0 if nothing is outstanding.
Late-payment penalty accrues at 14% per annum, monthly.
CT late filing: AED 500/month for the first 12 months, then AED 1,000/month.
Estimated penalties
Estimate only — confirm your actual liability with the FTA or a specialist.
Never miss a filing or payment deadline again.
Get startedHow UAE tax penalties are calculated
Missing a UAE tax obligation can trigger more than one penalty at once — a fixed penalty for filing late, a percentage-based charge on tax paid late, and a one-time penalty if you registered late. This estimator applies each using the current published formulas.
Late filing
Corporate Tax: AED 500/month for the first 12 months, then AED 1,000/month. VAT: AED 1,000 first offence, AED 2,000 if repeated within 24 months.
Late payment
For both CT and VAT, 14% per annum on the unpaid tax, accrued monthly. Twelve months late on AED 50,000 is roughly AED 7,000.
Late registration
A one-time AED 10,000 penalty applies for registering late for either Corporate Tax or VAT.
Worked example
A company files its Corporate Tax return 6 months late with AED 50,000 of tax still unpaid after 6 months. Late filing = 6 × AED 500 = AED 3,000. Late payment = AED 50,000 × 14% ÷ 12 × 6 = AED 3,500. Total estimated penalty = AED 6,500, before any late-registration penalty.
These are indicative figures. The FTA may assess penalties differently based on exact dates, prior offences, and any waiver, reconsideration or instalment arrangements. Treat the result as a planning estimate, not a final liability.
Understand the penalty rules in full
Read the UAE VAT penalties guide and the Corporate Tax penalties guide — or let AIMuhaseb keep your filings and payments on time so penalties never start.
Tax penalty calculator questions
How is the UAE late-payment penalty on tax calculated?
For both Corporate Tax and VAT, the late-payment penalty accrues at 14% per annum on the outstanding tax, applied monthly. This calculator uses a monthly rate of 14% ÷ 12 (about 1.167%) on the unpaid tax for each month it remains unpaid. The old VAT model of a fixed percentage plus escalating monthly charges no longer applies — the current regime uses the 14% annual, monthly-accrued approach.
What is the penalty for filing a Corporate Tax return late?
The Corporate Tax late-filing penalty is AED 500 per month for the first 12 months, then AED 1,000 per month from month 13 onwards. So six months late is AED 3,000; fifteen months late is AED 6,000 for the first year plus AED 3,000 for the three further months — AED 9,000 in total. This is separate from any late-payment penalty on unpaid tax.
What is the penalty for filing a VAT return late?
Under the current VAT penalty regime, late filing of a VAT return is AED 1,000 for the first offence and AED 2,000 for a repeat offence within 24 months. It is a fixed amount per late return rather than a monthly charge. A separate 14%-per-annum late-payment penalty applies to any VAT that is also paid late.
What is the penalty for registering late for tax in the UAE?
Late registration for Corporate Tax carries a one-time penalty of AED 10,000, and late registration for VAT is also a one-time AED 10,000. This calculator lets you add the AED 10,000 late-registration penalty on top of any late-filing or late-payment amounts.
Are these penalty figures exact?
No. This tool gives an indicative estimate using the standard published penalty formulas. Actual penalties can depend on your specific tax period, the exact number of days, prior offences within 24 months, waivers or instalment arrangements, and FTA assessment. Always confirm your position with the FTA or a tax specialist before relying on a figure.
Can UAE tax penalties be reduced or waived?
In some cases the FTA operates penalty reconsideration, instalment and waiver mechanisms, and voluntary disclosure can reduce exposure if you correct an error before an audit. The route and eligibility depend on your circumstances, so speak to a specialist rather than assuming a penalty is fixed.
Keep going
VAT penalties guide
The full VAT penalty regime, explained.
Corporate Tax penalties
Late filing, payment and registration penalties.
VAT calculator
Add or remove 5% VAT in seconds.
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