The Сabinet Decision will come into effect on March 1, 2024.
On Tuesday, the Ministry of Finance announced a new AED 10,000 fine for those who register for corporate tax late.
The penalty was introduced to encourage taxpayers to comply with tax regulations, and register within the timeframe specified by the FTA. The penalty amount for late tax registration is aligned with the penalty associated with late registration for excise tax and value added tax.
The Cabinet Decision No. 10 of 2024, which was announced today, amends the schedule of violations and administrative penalties of Cabinet Decision No. 75 of 2023.
The latter specified administrative penalties that would be imposed by the Federal Tax Authority (FTA) for violations related to the application of the Corporate Tax Law. Those penalties came into effect from August 1, 2023. The new fine will come into effect on March 1, 2024.
The law itself came into effect on June 1, 2023. UAE's corporate tax is one of the lowest in the world. The law states that a nine percent corporate tax will be levied on companies with a profit of AED 375,000 and above.