UAE Tax & Compliance

Key Highlights from Cabinet Decision No. 75/2023: Administrative Penalties for Corporate Tax Violations

October 7, 2026 · 3 min read

On August 1st, 2023, the Federal Government announced a law regarding imposition of penalties for violations of Corporate Law and Tax Procedures.

Penalty is the amount imposed by the authority for violating or breaching the provisions of:

Tax Procedures Law
Corporate Tax Law
Decisions issued by the Cabinet for execution

This law came into effect on August 1st, 2023.

List of Violations and Penalty Amounts

No.	Description of Violation	Administrative Penalty Amount
1	Failure to keep the required records and other information as required under the Law.	One of the following penalties shall apply: AED 10,000 for each violation. AED 20,000 in each case of repeated violation within 24 months from the date of the last violation.
2	Failure to submit the data, records and documents related to Tax in Arabic to the Authority when requested.	AED 5,000
3	Failure to submit a deregistration application within the timeframe specified in the law.	AED 1,000 in case of late submission of the application and on the same date monthly, up to a maximum of AED 10,000.
4	Failure to inform the Authority of any case that may require the amendment of the information pertaining to the tax record kept by the Authority.	One of the following penalties shall apply: AED 1,000 for each violation. AED 5,000 in each case of repeated violation within 24 months from the date of the last violation.
5	Failure of the Legal Representative to provide notification of their appointment within the specified time frames, in which case the penalties will be due from the Legal Representative.	AED 1,000
6	Failure of the Legal Representative to file a Tax Return within the specified time frames, in which case the penalties will be due from the Legal Representative.	AED 500 for each month, or part thereof, for the first twelve months. AED 1,000 for each month, or part thereof, from the thirteenth month onwards.
7	Failure of the taxable person to submit a Tax Return within the time frame specified in the Law.	AED 500 for each month, or part thereof, for the first twelve months. AED 1,000 for each month, or part thereof, from the thirteenth month onwards.
8	Failure of the Taxable Person to settle the Payable Tax.	A monthly penalty of 14% per annum, for each month or part thereof, on the unsettled Payable Tax amount from the day following the due date of payment and on the same date monthly thereafter.
9	The taxable person submits an incorrect Tax Return.	AED 500, unless the Person corrects his Tax Return before the expiry of the deadline for the submission of the Tax Return according to the Corporate Tax Law.
10	The submission of a Voluntary Disclosure by the Taxable Person in relation to errors in the Tax Return, Tax Assessment or Tax refund application pursuant to Clauses (1) and (2) of Article (10) of the Tax Procedures Law.	A monthly penalty of 1% on the Tax Difference, for each month or part thereof, applied from the due date of the relevant Tax Return, refund application, or Tax Assessment Notification until the Voluntary Disclosure is submitted.
11	Failure of the Taxable Person to submit a Voluntary Disclosure before being notified by the Authority that it will be subject to a Tax Audit.	A fixed penalty of 15% on the Tax Difference, plus a monthly penalty of 1% on the Tax Difference for each month or part thereof.
12	Failure to facilitate the tax auditors by a taxable Person who is subject to Tax Audit, or their Tax Agent or Legal Representative, in violation of Article (20) of the Tax Procedures Law.	AED 20,000
13	Failure of a Person to submit, or late submission of, a Declaration to the Authority as required under the Law.	AED 500 for each month, or part thereof, for the first twelve months. AED 1,000 for each month, or part thereof, from the thirteenth month onwards.

Disclaimer: This document has been prepared for general guidance and understanding about the subject. We do not provide any warranty for accuracy or completeness of information contained in this document. We do not assume any responsibility or liability for any consequential losses or damages if relied upon the contents of this document.

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