Penalties

BWMC Tax Team
Updated Jan 2026
5 min read

The FTA imposes administrative penalties for non-compliance. These can be fixed amounts or percentage-based.

Common Administrative Penalties

⚠️

Late Payment

  • Immediate: 2%
  • Day 7: 4%
  • Day 30+: 1% daily
📝

Late Registration

AED 20,000

Fixed penalty for failing to register within the specified timeframe.

Late Filing of Return

AED 1,000 (First time)

AED 2,000 (Repetition)

Failure to Keep Records

AED 10,000 (First time)

AED 50,000 (Repetition)

Percentage-Based Penalties (Voluntary Disclosure)

Penalties for errors disclosed voluntarily depend on when you disclose them relative to an FTA audit.

5% Before Audit Notification
30% After Notification
50% During/After Audit