Missed the 30 September Corporate Tax Deadline? What to Do Now
If your financial year ended on 31 December 2025, your Corporate Tax return and payment were due on 30 September 2026. If you missed it, two penalties started on 1 October. They grow every month until you file and pay.
The good news is that the cost is still small if you act now. This guide shows what you owe so far, how the charge builds, and the steps to stop it.
Key takeaways
Late filing costs AED 500 for each month or part of a month for the first 12 months, then AED 1,000 per month.
Unpaid tax costs 14% per year, charged monthly, from the day after the deadline.
A return filed in November 2026 is two months late, so the filing penalty so far is AED 1,000.
File now, even if the figures are not perfect. Correct them later with a voluntary disclosure.
The April 2026 penalty reform did not reduce Corporate Tax penalties.
Contents
What you owe right now
Two penalties run side by side under Cabinet Decision No. 75 of 2023. Both started the day after the deadline.
Penalty | Amount |
|---|---|
Late filing, months 1 to 12 | AED 500 for each month or part of a month |
Late filing, month 13 onwards | AED 1,000 for each month or part of a month |
Late payment | 14% per year on the unpaid tax, charged monthly |
The filing penalty counts a part month as a full month. October was month one. November is month two. So a return filed at any point in November carries AED 1,000 for late filing, whether you file on the 1st or the 30th.
The payment penalty is separate. Filing on time does not stop it, and paying on time does not stop the filing penalty. You need to do both.
How the cost grows if you wait
Take a company with taxable income of AED 500,000. The first AED 375,000 is taxed at 0%. The remaining AED 125,000 is taxed at 9%, so the tax due is AED 11,250. At 14% a year, the late payment penalty is AED 131.25 for each month.
Filed and paid in | Months late | Late filing | Late payment | Total penalties |
|---|---|---|---|---|
November 2026 | 2 | AED 1,000 | AED 262.50 | AED 1,262.50 |
December 2026 | 3 | AED 1,500 | AED 393.75 | AED 1,893.75 |
March 2027 | 6 | AED 3,000 | AED 787.50 | AED 3,787.50 |
October 2027 | 13 | AED 7,000 | AED 1,706.25 | AED 8,706.25 |
Filing this month keeps penalties at about 11% of the tax bill. Leave it for a year and they reach more than 77% of it. The schedule sets no cap.
What to do this week
Log in to EmaraTax. Confirm your registration, your tax period and the return that is overdue.
Decide on Small Business Relief. If your revenue was AED 3 million or less, you may elect the relief in the return. It now runs to tax periods ending on or before 31 December 2029. Electing it does not cancel the late filing penalty.
File the return. Use the best figures you have today. A return filed now and corrected later costs less than one filed in three months.
Pay the tax. Bank transfers to the FTA are not instant. Pay as soon as you file, so the late payment penalty stops.
Keep a note of what is estimated. You will need it for the correction.
If your records are not ready
File anyway, then fix the figures with a voluntary disclosure. The cost of a correction depends on timing.
Before the FTA tells you about an audit: 1% per month on the tax difference.
After the FTA tells you about an audit: a fixed 15% of the tax difference, on top of the monthly charge.
So a quick, honest correction is cheap. Waiting for the FTA to find the error is not. Our article on the April 2026 penalty reform explains why disclosure is the better route.
If you believe a penalty was charged wrongly, you can ask the FTA to reconsider it. Under the Tax Procedures Law, the request must be made within 40 business days of being notified. Keep the evidence that supports your case.
Other penalties to check
Late registration. If you registered late, the penalty is AED 10,000. The FTA waived it only where the first return was filed within seven months of the first tax period ending. For a 31 December 2025 period, that date was 31 July 2026. A return filed now does not secure the waiver.
Not registered at all. Register now. An unregistered business has a bigger problem than a late return, and the penalties keep building.
Records. Inadequate records cost AED 10,000 per violation, and AED 20,000 for a repeat within 24 months. Keep records for seven years after the end of the tax period.
One point is often missed. The April 2026 reform, under Cabinet Decision No. 129 of 2025, reduced penalties for VAT, excise and tax procedures. It did not touch Corporate Tax. Corporate Tax penalties still follow Cabinet Decision No. 75 of 2023.
Getting ready for 30 September 2027
For a 31 December 2026 year end, the next return is due on 30 September 2027. That is nine months after the year end, under Article 53 of Federal Decree-Law No. 47 of 2022. Most late returns come from the same causes: books closed late, related party balances not reconciled, and no one owning the deadline.
Fix those in the first quarter of 2027, not in September. Our guide to the 30 September 2026 deadline lists the reconciliations to start early.
How GTAG can help
Gulf Tax Accounting Group prepares and files overdue Corporate Tax returns, handles voluntary disclosures and sets up a year-end timetable so the next deadline is not missed. If your return is late, contact us this week.
Frequently asked questions
What is the penalty for filing a UAE Corporate Tax return late?
AED 500 for each month or part of a month during the first 12 months, then AED 1,000 per month from the 13th month, under Cabinet Decision No. 75 of 2023.
Is there a separate penalty for paying late?
Yes. Unpaid tax attracts 14% per year, charged monthly, from the day after the due date. It runs until the tax is paid, even if the return was filed.
Should I file now if my accounts are not final?
Yes. File on the best figures you have, then correct them with a voluntary disclosure. A disclosure made before the FTA notifies you of an audit costs 1% per month on the tax difference.
Did the April 2026 penalty reform reduce Corporate Tax penalties?
No. Cabinet Decision No. 129 of 2025 reduced VAT, excise and tax procedures penalties. Corporate Tax penalties are set separately and did not change.
Can I still claim Small Business Relief on a late return?
You elect the relief in the return itself, so you can still make the election when you file. The late filing penalty still applies.
When is the next Corporate Tax deadline?
For a 31 December 2026 year end, the return and payment are due on 30 September 2027.
About the author
Bill Anderson, FCCA is a Partner at Gulf Tax Accounting Group and Managing Partner at Business Improvement Group. He was previously Global CFO, Head of Finance and MI Operations, at the Royal Bank of Scotland corporate banking division, where he led global operations spanning over 2 billion pounds in profits and 103 billion pounds in total assets. He is a former board member of the Irish Business Council in Dubai and brings 25 years of experience across finance, strategy, audit, corporate governance and compliance.
Official sources
Corporate Tax legislation, including Cabinet Decision No. 75 of 2023, Federal Tax Authority
Federal Tax Authority announcements, Federal Tax Authority
These are the tax changes coming up in the UAE in 2026, The National
This article is general information, not tax advice on your circumstances. The position is stated as at 10 November 2026. The worked example uses illustrative figures.
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