A UAE juridical person subject to Corporate Tax fails to submit its Corporate Tax registration application to the Federal Tax Authority within the deadline specified for its category of Taxable Person. Under Cabinet Decision No. 10 of 2024 (amending Cabinet Decision No. 75 of 2023 on administrative penalties), what is the standard administrative penalty for this specific violation?
- AED 500 per month of delay, capped at AED 10,000 in total, mirroring the late VAT registration penalty structure
- A percentage-based penalty calculated as 1% of the Taxable Person's annual revenue
- No penalty applies as long as the Taxable Person voluntarily registers within 12 months of the missed deadline
- A flat AED 10,000 administrative penalty for failing to submit the Corporate Tax registration application within the specified timeframe
Why D? And why not the others?
Correct answer: D. A flat AED 10,000 administrative penalty for failing to submit the Corporate Tax registration application within the specified timeframe
Cabinet Decision No. 10 of 2024, amending Cabinet Decision No. 75 of 2023, introduced a flat AED 10,000 administrative penalty for a Taxable Person that does not submit its Corporate Tax registration application within the timeframe specified by the Federal Tax Authority, regardless of how long the delay lasts (a later waiver-and-refund initiative lets some businesses have this penalty waived or refunded if they file their first return promptly, but the underlying penalty itself is the flat AED 10,000 figure). The option describing a monthly AED 500 charge capped at AED 10,000 is wrong because that structure describes a different, per-month penalty format used elsewhere in UAE tax administration, not the Corporate Tax late-registration penalty, which is a single flat amount. The option describing a 1%-of-revenue penalty is wrong because no such percentage-based calculation applies to late Corporate Tax registration. The option claiming no penalty applies within a 12-month grace window is wrong because the flat AED 10,000 penalty is triggered by missing the specified registration deadline itself, not by a separate 12-month grace period.
Source: UAE Cabinet Decision No. 10 of 2024, amending Cabinet Decision No. 75 of 2023 (administrative penalties)