Imposing a monthly fine for delay in paying the corporate tax

The Federal Tax Authority stated that the failure of the one who is subject to the corporate tax payment of the payment tax for each month or part of the month is subjected to a monthly fine of 14% annually, imposes on the amount of the payment tax that has not been paid, from the day following the date of the payment due and the same date monthly after that.

The authority said in a statement yesterday that, for the purposes of this fine, the payment is due to a later date of nine months from the date of the end of the relevant tax period, according to the decree of the Federal Law No. 47 of 2022 regarding the tax on companies and business and its amendments.

The UAE began to impose corporate tax on the business community, by 9% on income, which exceeds 375 thousand dirhams, and by 0% on income that does not exceed this amount, starting from the fiscal year that starts from the first of June 2023.