The Federal Tax Authority (FTA) has announced that taxpayers who fail to pay their corporate tax on time will incur a monthly penalty of 14 percent per annum on the unpaid amount.
This penalty will be calculated from the day following the payment deadline and will continue to accrue on the same date each month thereafter.
According to the FTA’s recent press release, the due date for tax payments is no later than nine months after the conclusion of the relevant tax period. This timeline is in accordance with Federal Decree-Law No. 47 of 2022 on Corporate Tax, along with its subsequent amendments.
The FTA has emphasized the importance of adhering to the specified tax payment deadlines to avoid incurring penalties, which could significantly increase the total tax liability for businesses that delay payments.
This move by the FTA underlines the commitment to ensuring compliance with corporate tax regulations and maintaining a fair and transparent tax system across the UAE.
News Source: Emirates News Agency
