Missed the 30 September 2025 Corporate Tax Return Deadline? Penalties & Remedies (UAE)
If your tax period ended on 31 December 2024, your first UAE Corporate Tax (CT) return and payment are due by 30 September 2025. This is clearly stated in the Corporate Tax Law:
- Article 53 – Tax return must be filed within 9 months of the end of the tax period.
- Article 48 – Tax payable must be settled within 9 months of the end of the tax period.
The Federal Tax Authority (FTA) has already issued reminders that returns and payments must be submitted within this timeline.
Consequences of late filing
1.Late filing penalty (Cabinet Decision No. 75 of 2023)
- AED 500 for each month (or part thereof) for the first 12 months.
- AED 1,000 for each month (or part thereof) from the 13th month onwards.
2.Late payment penalty
- 14% per annum, calculated monthly, on any unpaid tax.
3.Incorrect return penalties
- AED 500 if errors are not corrected before the deadline.
- Voluntary disclosure after deadline may trigger 1% monthly + fixed penalties.
4.Restriction on deregistration
- Under Article 52(2), no tax deregistration is possible until all returns, tax and penalties are cleared.
Remedies if you miss the deadline
Even if you have not acted before 30 September 2025, the law allows corrective steps to reduce exposure:
1) Immediate filing & payment
- File the CT return as soon as possible through the EmaraTax portal.
- Pay any due CT immediately to stop the accumulation of 14% annual late-payment penalties.
- Even a few days’ delay counts as a full month penalty, so faster action means lower fines.
2) Voluntary Disclosure (Article 56 & penalties framework)
- If you filed but later discover errors, submit a voluntary disclosure.
- Submitting before FTA audit saves you from harsher fixed penalties (15% + ongoing monthly %).
- The earlier the disclosure, the smaller the additional liability.
3) Request for penalty reduction or waiver
- Under the FTA’s Penalty Redetermination Scheme (Decision No. 9 of 2021, extended to CT), businesses may apply for penalty relief if they can demonstrate:
- Reasonable cause for delay (technical issues, genuine hardship, or misinterpretation of law).
- Immediate corrective action once aware of non-compliance.
- Applications are made through the FTA portal, and each case is reviewed on merit.
4) Clarification requests
- If unsure about eligibility, exemptions, or technical compliance, submit a Clarification Request to the FTA before filing. This can help avoid further disputes and penalties.
5) Appeals through Reconsideration
- If you believe a penalty was wrongly imposed, you may file a Reconsideration Request to the FTA within 20 business days of the penalty notification.
Key Takeaways for Businesses
- Act fast: Each month of delay = another penalty charge.
- Don’t wait for FTA audit: Self-disclosure attracts lighter penalties.
- Maintain records: Proper accounting, substance documentation, and transfer pricing support are your best protection.
- Seek professional help: Audit firms and tax advisors can help you assess liability, file disclosures, and apply for penalty relief.