Tax compliance · 2026-05-12

UAE Corporate Tax: Q2 2026 Filing Deadlines and Penalty Schedule

Companies with financial years ending 30 June 2025 are now in the final stretch before their UAE Corporate Tax return falls due. The penalty schedule under Cabinet Decision 75 of 2023 is unforgiving, and the FTA's audit selection algorithm is by now well-trained on first-cycle filings.

By ArxSetup Editorial Team ·

The FY-30-June filing window: what is actually due, and when

Federal Decree-Law 47 of 2022 requires every Taxable Person to submit a return within nine months of the end of the relevant Tax Period. For a company with a financial year ending 30 June 2025, the return — and any tax payable — is due no later than 31 March 2026.

Three things follow. First, this is the first full-cycle return for most UAE companies. Second, EmaraTax has been live for this form since 1 January 2026 — no advantage in waiting. Third, filing and paying share a single deadline. GIBAN transfers take 24-48 hours during Ramadan banking weeks; Eid Al-Fitr 2026 is forecast 20-22 March, inside the payment window.

The penalty schedule, in plain numbers

Cabinet Decision 75 of 2023 sets the administrative penalties:

Failure to register on time — AED 10,000.
Late filing of the return — AED 500 per month (first 12 months), then AED 1,000/month. Uncapped.
Late payment of tax — 14% per annum, monthly.
Failure to keep records — AED 10,000 per violation, rising to AED 20,000 on repeat within 24 months.
Failure to submit QFZP Declaration — AED 10,000 plus loss of QFZP status.

QFZP eligibility: four cut-offs Q2 filers keep missing

From our Q1 2026 file reviews:

1. De minimis 5%/AED 5M ceiling. Passive income reclassified during audit (interest on cash buffers, FX gains) pushes borderline-clean companies over the line.
2. Adequate substance for the actual Qualifying Activity. A holding co with one part-time director and no office will not pass.
3. 0% applies to Qualifying Income only. A single unauthorised mainland sale crystallises Non-Qualifying Revenue; breach the de minimis and ALL taxable income flips to 9%.
4. Electing into the standard regime is irrevocable for five years. Don't tick the box without modelling.

Audit triggers we are seeing

The FTA's risk engine clusters on five patterns: (a) related-party transactions without TP documentation (Ministerial Decision 97 of 2023); (b) loss carry-forward against post-2024 profits without continuity test under Article 39; (c) Small Business Relief claimed alongside QFZP election (mutually exclusive); (d) PE risk on remote-employee structures in Egypt, India or UK; (e) bank-reconciliation gaps above AED 50,000 vs FTA's bank-feed aggregate.

Practical checklist for the 31 March 2026 deadline

Week -8: close books, finalise audit. Week -6: run QFZP determination. Week -4: prepare TP disclosure form. Week -2: draft return in EmaraTax, save without submitting. Week -1: initiate GIBAN payment (don't rely on Ramadan clearance). Deadline week: submit, download Tax Payment Voucher, file under Article 56 seven-year retention.

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