What are the penalties for late tax filing in Dubai?

The Federal Tax Authority (FTA) takes tax filing deadlines extremely seriously. Missing a single deadline can quickly spiral into thousands of dirhams in penalties.

Late Filing Penalties

• First Offense: AED 1,000 for failing to submit the tax return within the specified timeframe.
• Repeat Offense: AED 2,000 if the offense is repeated within 24 months.

Late Payment Penalties

Alongside filing penalties, paying the actual tax due late incurs percentage-based surcharges:

1. 2% of the unpaid tax is due immediately upon delay.
2. 4% additional penalty is added on the 7th day following the deadline.
3. 1% daily ongoing penalty applies thereafter until reaching a maximum of 300% of the original tax due.

Avoiding Penalties

Compliance isn't just about paying the right amount, it's about paying exactly on time. V Lead provides automated reminder and filing services to ensure you never miss an FTA deadline.