What is the penalty for paying Corporate Tax late?

• • • • • • • • • • To treat a Government Entity’s taxable Businesses as a single Taxable Person;390 To treat an Unincorporated Partnership as a single Taxable Person;391 To treat a Family Foundation as an Unincorporated Partnership;392 To request a clarification from the FTA;393 To request a refund from the FTA;394 To adjust Taxable Income following an adjustment by a foreign tax authority; 395 To move from the Cash Basis of Accounting to Accrual Basis of Accounting;396 To form, join or leave a Tax Group, replace a Parent Company in a Tax Group, or cease to be a Tax Group;397 To deregister for Corporate Tax;398 and To change their Tax Period.399 Tax Returns and payments Consistent with Corporate Tax being a self-assessed regime, Taxable Persons should pay Corporate Tax and file their Corporate Tax Return within 9 months from the end of the relevant Tax Period.400 For example, a Taxable Person with a Financial Year ending on 31 December is required to file their Tax Return and pay Corporate Tax on or before 30 September the following year. Submitting a Tax Return late or a delay in making a payment of Corporate Tax Payable will result in a penalty of: • • AED 500 for each month of delay, or part thereof, for the first twelve months; AED 1,000 for each month of delay, or part thereof, from the thirteenth month onwards.401 390 Article 5(6) of the Corporate Tax Law. 391 Article 16(8) of the Corporate Tax Law. 392 Article 17(1) of the Corporate Tax Law. 393 Article 59(1) of the Corporate Tax Law. 394 Article 49(1) of the Corporate Tax Law. 395 Article 34(11) of the Corporate Tax Law. 396 Article 20(6) of the Corporate Tax Law. 397 Articles 40(1), 40(3), 40(9), 40(10), 40(11) and 40(12) of the Corporate Tax Law. 398 Article 52(1) of the Corporate Tax Law. 399 Article 58 of the Corporate Tax Law. 400 Articles 48 and 53 of the Corporate Tax Law. 401 Cabinet Decision No. 75 of 2023. General Corporate Tax Guide | Corporate Tax | CTGGCT1 119