What is the late payment penalty rate for tax?

7 The failure of the Legal 1,000 for the first time. Representative for the Taxable 2,000 in case of repetition within 24 Person to file a Tax Return within the months. specified timeframe, in which case the Penalties will be due from the Legal Representative’s own funds. 8 The failure of the Registrant to 1,000 for the first time. submit the Tax Return within the 2,000 in case of repetition within 24 timeframe specified in the Tax Law. months. 9 The failure of the Taxable Person to 1. The Taxable Person shall be obliged to settle the Payable Tax stated in the pay the penalty applicable to late submitted Tax Return or Voluntary payment of Payable Tax up to a Disclosure, or the Tax Assessment maximum of 300%, pursuant to the he was notified of, within the following: timeframe specified in the Tax Law. a. 2% of the unpaid Tax shall be due on the day following the due date of payment, where the settlement of Payable Tax is late. b. 4% monthly penalty is due after one month from the due date of payment, and on the same date monthly thereafter, on the unsettled Tax amount to date. 2. For the purposes of this penalty, the due date of payment in the case of the Voluntary Disclosure and Tax Assessment, shall be as follows: a. 20 business days from the date of submission, in the case of a Voluntary Disclosure. b. 20 business days from the date of receipt, in the case of a Tax Assessment. 10 The submittal of an incorrect Tax 1. Fixed penalty shall be applied: Return by the Registrant. 1,000 for the first time. 2,000 in case of repetition. 2. As an exception to Clause 1 of this penalty, if the incorrect Tax Return results in a Tax difference less than the Cabinet Decision No. 49 of 2021 - Issue Date: 28 April 2021 - Unofficial Translation 3

10. audit and before the Authority starts the tax audit. • 5% if the registrant makes a voluntary disclosure before being notified of the tax audit by the Authority Table 1 – Penalty 9 of the Appendix to Cabinet Resolution 40: The failure of the taxable person to settle the payable tax stated in the submitted tax return or tax assessment he was notified of, within the timeframe specified in the tax law. ) – المُ رفق بقرار مجلس9( ) – الغرامة رقم1( الجدول رقم.10 :)40( الوزراء رقم عدم قيام الخاضع للضريبة بسداد الضريبة المبيّنة على أنها ضريبة مستحقة الدفع في اإلقرار الضريبي الذي تم تقديمه أو التقييم الضريبي الذي تم تبليغه به خلل المهلة المحددة في .القانون الضريبي The Taxable Person shall be obligated to pay a late payment penalty consisting of: • 2% of the unpaid tax is due immediately once the payment of payable tax is late; • 4% is due on the seventh day following the deadline for payment, on the amount of tax which is still unpaid; • 1% daily penalty charged on any amount that is still unpaid one calendar month following the deadline for payment with upper ceiling of 300%. المسجل ملزم بدفع الغرامة المطبقة على تأخير الدفع والتي :تتألف من ) من الض بببريبة غير المدفوعة تس بببتحق على الفور%2( • .عند تأخير دفع الضريبة المستحقة الدفع ) تسبببتحق في اليوم السبببابع من تاريخ انتهاء الفترة%4( • الم حددة ل لدفع على مبلغ الض ببببببري بة ا لذي لم يدفع حتى .تاريخه ي مبلغ غير مدفوع أ على تسبببببتحق يومية غرامة )%1( • ّ لمدة تزيد على شهر ميلدي واحد من تاريخ انتهاء الفترة .)%300( المحددة للدفع وبحد أقصى 9/9