Administrative Penalties for Corporate Tax Violations in the UAE


In the ever-evolving landscape of corporate taxation, compliance is not merely a choice—it’s an absolute necessity. The UAE Ministry of Finance (MoF) has taken a significant stride towards fortifying corporate tax compliance with the introduction of Cabinet Decision No (75) of 2023. This decision shines a spotlight on administrative penalties for infringements related to the Federal Decree-Law No 47 of 2022—an essential development that businesses must be well-versed in.

Effective Date: August 1st

Circle August 1st on your calendar, for it heralds a pivotal juncture in the realm of corporate tax in the UAE. Cabinet Decision No (75) of 2023 delineates a comprehensive framework of administrative penalties that will be enforced by the Federal Tax Authority. These penalties are meticulously aimed at ensuring the proficient application and adherence to the corporate tax law, while also facilitating a seamless transition for businesses that embrace the new regulations.

Harmonizing Compliance and Growth

The bedrock of these administrative penalties rests on equilibrium. They have been carefully crafted to uphold corporate tax compliance without burdening businesses that align themselves with the regulations. This balanced approach stands as a testament to the UAE’s dedication to nurturing sustainable economic growth through an enabling legislative environment—one that fosters tax compliance and aligns with global standards.

Key Highlights of Administrative Penalties

These administrative penalties are applicable to taxable entities, encompassing both individuals and legal entities, who fall short of fulfilling their obligations under the UAE corporate tax law. These penalties encompass a range of violations, including:

  • Failure to file and pay corporate tax on time.
  • Omission to notify the Federal Tax Authority about cases necessitating amendments to tax records.
  • Inadequate record-keeping or improper submission of required records and information as outlined in the tax law.
For Expert Guidance on Corporate Tax

To safeguard your business from corporate tax violations and to ensure seamless compliance with the evolving corporate tax regulations in the UAE, Alliance Prime is your steadfast partner. Our dedicated experts are here to guide you through the intricacies of corporate tax compliance.

Why is Alliance Prime the best Tax Consultancy in Dubai?

Alliance Prime is a leading provider of auditing, accounting, taxation, and advisory services in the UAE. Our expert team will guide you through the complex laws and regulations of UAE, including Corporate Tax, VAT, Excise Tax, Accounting and Bookkeeping, ESR, Financial Advisory, ERP, etc. We stay up-to-date with the latest changes in laws and regulations in the UAE. If you’re looking for reliable and professional auditing, accounting, taxation, and advisory services in the UAE, look no further than Alliance Prime. 

To find out if your business is eligible for Small Business Relief under the new CT regime or to Book a Free Consultation, contact us on: at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com

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