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These Corporate Tax Mistakes in Dubai Are Costing Companies Hefty Penalties
Since corporate tax came into force in the UAE, the three issues that generate the most penalties have not changed: late tax registration, undocumented expenses and salary structures that do not reflect commercial reality. Late registration costs AED 10,000, a late return costs AED 500 per month in the first year, and unpaid tax accrues at 14% per annum. The penalty amounts, the FTA seven-month waiver window, appeal deadlines and the correct calculation steps are set out below with full tables.
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Since corporate tax came into force in the UAE, the three issues that generate the most penalties have not changed: late tax registration, undocumented expenses and salary structures that do not reflect commercial reality. Late registration costs AED 10,000, a late return costs AED 500 per month in the first year, and unpaid tax accrues at 14% per annum. The penalty amounts, the FTA seven-month waiver window, appeal deadlines and the correct calculation steps are set out below with full tables.