FTA Explains Penalties for Unpaid Corporate Taxes

FTA Clarifies Monthly Penalties for Unpaid Corporate Taxes

Abu Dhabi, January 24, 2025– The Federal Tax Authority (FTA) has clarified that taxpayers will be subject to a monthly penalty of 14 percent per annum for failure to pay the outstanding corporate tax for each month or part thereof.

This penalty is imposed on the unpaid tax amount and is calculated from the day following the payment deadline and from the day of the same month in each subsequent month.

In a press release issued today, the FTA said that the due date for payment of this penalty is no later than nine months after the end of the relevant tax period, in accordance with Federal Decree-Law No. 47 of 2022 on Corporate Tax and its subsequent amendments.