(EFFECTIVE FROM 14 APRIL 2026)
The Administrative Penalties for Violation of Tax Laws in
the UAE
| VIOLATION | OLD PENALITIES (49 & 108 of 2021) |
NEW PENALITIES (129 of 2025) |
| LATE PAYMENT OF TAX | 2% penalty on due date and 4% monthly penalty. | 5% to 40% based on the year of error. 5% (within 1 year), 10% (2 years), 20% (3 years), 30% (4 years), 40% (after 4 years) |
| VOLUNTARY DISCLOSURE BEFORE AUDIT NOTICE | 5% to 40% based on year of error. 5% (within 1 year), 10% (2 years), 20% (3 years), 30% (4 years), 40% (after 4 years) | Flat penalty of 1%monthly on the tax difference, calculated from the original due date until voluntary disclosure submission. |
| VOLUNTARY DISCLOSURE AFTER AUDIT NOTICE | 50% fixed penalty on the tax difference plus 4% per month on unpaid tax from the original due date until receipt of tax assessment. | 15% fixed penalty and 1% monthly until voluntary disclosure submission |
| Monthly penalty of 14% per annum on unpaid tax; calculated monthly from the due date. | AED 20,000 for failure to submit records in Arabic | AED 5,000 |
| UPDATE TAX RECORDS (TAXABLE PERSON AMENDMENT) |
AED 5,000(1st violation) AED 10,000(if repeated) |
FAILURE TO NOTIFY APPOINTMENT OF LEGAL REPRESENTATIVE |
| ARABIC TRANSLATION PENALITY | AED 10,000 | AED 1,000 |
| RECORD KEEPING FAILURE |
AED 10,000 (In the first instance) AED 20,000 (In the second instance) |
AED 10,000 for each Violation AED 20,000 if repeated within 24 months |
| THE REGISTRANT SUBMITS AN INCORRECT TAX RETURN |
AED 1,000 (1st violation) AED 2,000 (repeated violation) |
AED 1,000 (1 st violation) AED 5,000 in case of repeated violation within 24 months from date of the last violation. |