The penalty position
We review FTA notices and the EmaraTax account and establish what has been charged, what is still accruing and why, period by period.
Protect · Penalties & disclosures
Late filings and errors, corrected on the right terms
Most corporate tax penalties grow by the month, and an error the FTA finds first costs far more than one disclosed voluntarily. We file what is late, correct what is wrong through the right route, and prepare reconsideration requests where there are grounds for one.
- Late return
- AED 500
- per month or part month for 12 months, then AED 1,000
- Late payment
- 14% a year
- applied monthly to the unpaid tax
- Voluntary disclosure
- 1% a month
- on the tax difference, from the original due date
- Found after an audit notice
- 15%
- of the tax difference, plus 1% a month
Protect
Who this is for
- Entities that missed the 30 September 2026 deadline for the FY2025 return, the payment, or both.
- Subsidiaries registered late, where the AED 10,000 penalty may still be waived or credited back.
- Finance teams that have found an error in a filed return and need to know whether it requires a voluntary disclosure or can wait for the next return.
- Companies facing an FTA penalty they believe was wrongly applied.
- Groups where returns, payments and penalties have built up across several entities and periods, with no single view of what is owed.
What we do
The work, end to end.
Late returns and payments
We prepare and file overdue returns and confirm the exact amounts to pay, so the monthly charges stop as soon as possible.
Voluntary disclosures
We quantify the error and choose the route: a voluntary disclosure within 20 business days for errors over AED 10,000, or a correction in the next return for smaller ones. Then we prepare and file it.
The late-registration waiver
If the first return can still be filed within seven months of the end of the first tax period, the AED 10,000 penalty is waived, or credited to the EmaraTax account if already paid. We check the date and plan the filing to meet it.
Reconsideration requests
Where a penalty appears wrong, or there are grounds to ask for relief, we prepare and file a reconsideration request asking the FTA to review its decision, with the supporting evidence. The FTA decides the outcome.
Preventing a repeat
A dated filing calendar and a pre-filing review routine, so the same deadline or error does not recur next year.
How it works
Clear steps. No guesswork.
- 1
Day 1
Initial review
At no charge, we look at the notices and the EmaraTax account and identify what is most urgent.
- 2
About 1 week
Full position
We list every return, payment and penalty outstanding, entity by entity and period by period, and what each is still costing.
- 3
1 to 3 weeks
Correct and file
We file late returns and voluntary disclosures and confirm the amounts to pay.
- 4
Varies
Reconsideration, where there are grounds
We prepare the request and the evidence and submit it to the FTA.
- 5
Varies
FTA decision
The FTA reviews the request and decides. We explain the outcome and any next step.
What you get
Deliverables
- A schedule of every penalty and liability, showing what is still accruing
- Late returns filed on EmaraTax
- Voluntary disclosures prepared and filed, where required
- A check of late-registration waiver eligibility and the relevant date
- Reconsideration requests prepared and filed, where there are grounds
- A compliance calendar for the periods ahead
Know the law
The rules in brief
- 1
A late return costs AED 500 per month or part month for the first 12 months, then AED 1,000 per month.
Cabinet Decision No. 75 of 2023
- 2
Unpaid tax attracts a late-payment penalty of 14% a year, applied monthly from the day after the due date.
Cabinet Decision No. 75 of 2023
- 3
An incorrect return costs AED 500, unless it is corrected before the filing deadline.
Cabinet Decision No. 75 of 2023
- 4
A voluntary disclosure carries 1% per month on the tax difference, from the original due date to the date of disclosure.
Cabinet Decision No. 75 of 2023
- 5
An error not disclosed before notice of a tax audit costs 15% of the tax difference plus 1% per month.
Cabinet Decision No. 75 of 2023
- 6
From 1 April 2026, errors over AED 10,000 must be disclosed within 20 business days; smaller errors can be corrected in the next return.
Cabinet Decision No. 17 of 2026
- 7
The AED 10,000 late-registration penalty is waived, or credited back if paid, when the first return is filed within seven months of the end of the first tax period.
FTA Public Clarification CTP006
No adviser can promise that, because the FTA decides every reconsideration request. What we do is check whether the penalty was correctly applied, identify any grounds for relief, and prepare and file a complete request with the evidence.
Yes. The FTA has not published an end date. The AED 10,000 penalty is waived, or credited to the EmaraTax account if paid, when the first return is filed within seven months of the end of the first tax period. For a first period ending 31 March 2026, that is 31 October 2026, a Saturday, so file by Friday 30 October to be safe. If the date has passed, or a waiver has already been granted, it is not available, and the tax itself is still due at nine months.
It is 14% a year, applied monthly: about 1.17% for each month or part month, on the unpaid tax, from the day after the due date. For a voluntary disclosure or an assessment, the due date is 20 business days after it is submitted or received.
If the error is over AED 10,000, yes: it must be corrected by voluntary disclosure within 20 business days. An error of AED 10,000 or less can be corrected in the next return. A disclosure costs 1% a month on the tax difference, far less than the 15% plus 1% a month that applies if the FTA finds it after notifying an audit.
Yes. Late filing and late payment are separate penalties, so filing stops the monthly late-filing charge even while the late-payment penalty on unpaid tax continues. Filing also establishes exactly what is owed.
No. Cabinet Decision No. 129 of 2025, in force from 14 April 2026, changed VAT, excise and tax procedures penalties. The corporate tax penalty table is still Cabinet Decision No. 75 of 2023, as amended by Cabinet Decision No. 10 of 2024.
AED 500, unless it is corrected before the filing deadline. Any additional tax then carries the voluntary disclosure penalty if disclosed, or 15% plus 1% a month if it is found after the FTA notifies an audit.
Often needed together
Talk to us
Late, or found an error?
Send us the FTA notices or the last return and we will set out what is owed, what is still accruing and the route to put it right. The first consultation is free.
- FTA Registered Tax Agency
- Tax team with Big Four audit-firm experience
- Mon to Fri, 9:00 am to 6:00 pm (GST)
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