• The UAE introduced a new penalty of Dh10,000 for companies that registered late for corporate tax.
• This penalty aims to ensure businesses comply with tax regulations and register on time.
• The corporate tax rate is 9% for companies exceeding Dh375,000 in annual profits.

The Ministry of Finance introduced a new penalty of Dh10,000 for late registration in corporate tax, aligning with efforts to ensure adherence to tax regulations and timely registration. This fine is consistent with penalties for tardy registration on other taxes. Cabinet Decision No. 10 of 2024 modifies penalties for tax infringements, superseding Cabinet Decision No. 75 of 2023, enforced by the Federal Tax Authority. The implementation of this new fine commences on March 1, 2024.

The corporate tax legislation commenced on June 1, 2023, featuring a modest rate of nine percent for companies generating profits exceeding Dh375,000. A comprehensive guide outlining the entities liable for corporate tax obligations was issued in December 2023. The Federal Tax Authority recommends individuals consult this guide and additional resources available on their website.

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The government provides Small Business Relief (SBR) to support small enterprises with their tax obligations. This relief applies to residents with a gross income of up to Dh3 million for the tax period ending on or before December 31, 2026.