FTA penalties don't stay flat — a late VAT payment escalates the longer it's outstanding, and Corporate Tax late filing penalties double after 12 months. If you already know you're behind, the most useful number isn't "how much trouble am I in" in the abstract — it's an actual estimate, so you know what you're dealing with before you call us or the FTA.
Penalty Calculator
Estimate late registration, filing, or payment penalties.
Late VAT registration carries a single flat penalty, regardless of how late.
Late Corporate Tax registration carries a single flat penalty, regardless of how late.
Already behind? The gap usually gets more expensive, not less.
VAT late payment penalties escalate the longer they sit unpaid, and Corporate Tax late filing penalties double after 12 months — waiting rarely helps. If a filing or payment is overdue, our VAT and Corporate Tax teams can help you get current, and in some cases make the case for a penalty waiver.
Frequently asked questions
A flat AED 10,000 penalty applies for failing to register for VAT by the deadline once your turnover crosses the mandatory threshold.
For VAT, late filing is AED 1,000 for a first offense and AED 2,000 if it happens again within 24 months. For Corporate Tax, late filing is AED 500 per month for the first 12 months, rising to AED 1,000 per month after that.
2% of the unpaid tax applies immediately once payment is overdue, an additional 4% applies if it's still unpaid 7 days later, and then 1% per day accrues after one full calendar month from the due date — up to a maximum of 300% of the original tax due.
Corporate Tax late payment accrues at 14% per annum on the outstanding tax, prorated daily for as long as it remains unpaid — a different structure from VAT's escalating percentage model.
Yes — the Federal Tax Authority has discretion to waive or reduce administrative penalties in specific circumstances, such as a genuine first-time error corrected voluntarily. This calculator estimates the standard penalty only; it doesn't assess whether your case might qualify for a reduction, which is worth discussing with an advisor before you pay or dispute one.