UAE FTA (Federal Tax Authority) Penalties Reference 2026 — CT and VAT Fines
UAE FTA issues administrative penalties for non-compliance with Corporate Tax and VAT obligations. Here is the complete 2026 penalties reference guide.
In this guide:
Corporate Tax Penalties
| Violation | Penalty |
|---|---|
| Late CT registration | AED 10,000 |
| Late CT return filing | AED 500/month (first 12 months); AED 1,000/month after |
| Late CT payment | 2% immediate; 4% after 7 days; 1% daily up to 300% max |
| Failure to maintain records | AED 10,000 first time; AED 20,000 repeat |
| CT return with incorrect information | 100% of understated tax amount |
VAT Penalties
| Violation | Penalty |
|---|---|
| Late VAT registration | AED 10,000 |
| Late VAT return filing (first offence) | AED 1,000 |
| Late VAT return filing (second offence within 24 months) | AED 2,000 |
| Late VAT payment | 2% immediate; 4% after 7 days; 1% daily up to 300% max |
| Not issuing tax invoices | AED 2,500 per invoice |
| VAT fraud | 300% of understated tax |
Voluntary Disclosure
- FTA allows voluntary disclosure: If you discover an error in a prior return, file a voluntary disclosure
- Reduced penalty: Penalties are reduced for voluntary disclosure vs. FTA audit discovery
- Act early: Voluntary disclosure penalty is significantly lower than post-audit penalty