Definition

An Administrative Penalty is a fine imposed by the UAE Federal Tax Authority for non-compliance with tax laws, such as late registration, filing, or payment.

Key points

• Can be fixed amounts (e.g., AED 1,000 for late VAT filing).
• Can be percentages of unpaid tax (up to 300% for late payments).
• Applies to VAT, Excise Tax, and Corporate Tax.
• Can be reduced if the taxpayer files a voluntary disclosure.

Practical example

A company files its VAT return 10 days late. It receives an administrative penalty of AED 1,000 from the FTA.

Why it matters

Understanding penalties helps businesses stay compliant and avoid unnecessary costs.