The Federal Tax Authority (FTA) has clarified that taxpayers failing to pay the due corporate tax for each month or part thereof shall be subject to a monthly penalty of 14 percent per annum.
This penalty is imposed on the unpaid tax amount and is calculated from the day following the payment deadline, accruing on the same date each subsequent month.
In a press release issued today, the FTA indicated that for the purposes of this penalty, the due date 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.
Meanwhile the Federal Tax Authority (FTA) has called on businesses subject to Corporate Tax to file their returns and pay their dues for their respective tax periods within the stipulated legal timeframes.
As part of its commitment to supporting and encouraging voluntary tax compliance across business sectors with ease and efficiency, the FTA issued Decision (7) of 2024 last September on the Postponement of the Deadline to File a Tax Return and Settle the Corporate Tax Payable to December 31st, 2024 for Tax Periods ending on or before February 29th, 2024 (for example, tax periods ending in December 2023, January 2024, or February 2024).
In a media statement today, the FTA urged businesses subject to Corporate Tax whose tax periods ended on or before February 29th, 2024 to file their tax returns and settle the Corporate Tax Payable for their Tax Period to the FTA before the end of December 2024.
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