Key takeaways
- A corporate tax voluntary disclosure is the formal notice you give the FTA when a filed return, or a tax assessment, understated your payable tax; the Tax Procedures Law makes it mandatory in that case, not optional.
- Under Cabinet Decision No. 75 of 2023, a corporate tax voluntary disclosure made before any audit notice costs 1% of the tax difference per month, counted from the original return due date until you submit.
- If the FTA notifies you of an audit before you disclose, the corporate tax penalty adds a fixed 15% of the tax difference on top of the 1% monthly charge.
- A voluntary disclosure can't be submitted more than five years after the end of the relevant tax period, according to Article 46(5) of Federal Decree-Law No. 28 of 2022 (text checked before the law's 2026 amendments).
- Tax you owe as a result of a disclosure is due 20 business days after you submit it; late payment then carries a penalty of 14% per annum.
What is a voluntary disclosure for corporate tax?
A voluntary disclosure is a formal correction you submit to the Federal Tax Authority (FTA) after you discover that a tax return, a tax assessment or a refund application was wrong. For corporate tax it sits under Article 10 of Federal Decree-Law No. 28 of 2022 on Tax Procedures, which applies across UAE federal taxes, and the corporate tax-specific penalties for it are in Cabinet Decision No. 75 of 2023.
You don't overwrite the original filing; you tell the FTA what was wrong, what the correct figures are and how much the tax difference is, using the forms and procedure the FTA prescribes (the Executive Regulation leaves the exact format to the authority).
When do you have to file a voluntary disclosure?
You must file when the error means too little tax was declared; you may file when the error means too much was declared. The table sets out the cases in Article 10 of the Tax Procedures Law.
| Situation | Voluntary disclosure |
|---|---|
| Return or assessment understated payable tax | Mandatory (Article 10(1)) |
| Refund application overstated the refund | Mandatory (Article 10(2)) |
| Return or assessment overstated payable tax | Optional (Article 10(3)) |
| Refund application understated the refund | Optional (Article 10(4)) |
| Error or omission that doesn't change the tax due | Mandatory correction by voluntary disclosure (Article 10(5)) |
Source for the table: Federal Decree-Law No. 28 of 2022, Article 10, text checked 02 November 2026 on the Ministry of Finance copy, which pre-dates the amendments that took effect on 1 January 2026.
The Executive Regulation (Cabinet Decision No. 74 of 2023) adds the timing: where the understatement is above AED 10,000, you submit within 20 business days of discovering the error. For differences of AED 10,000 or less, the regulation lets you correct the error in a tax return instead, provided a return exists that can carry it. Corporate tax returns are annual, so that route would mean waiting for a later return; the Ministry of Finance announced amendments to this regulation effective 1 April 2026, and we couldn't confirm from an official page how the FTA applies the small-amount route to corporate tax in practice. Treat the 20 business day rule as the safe default.
How much does a corporate tax voluntary disclosure cost?
A disclosure filed before the FTA notifies you of an audit costs 1% of the tax difference for each month or part of a month; a disclosure you leave until after the audit notice adds a fixed 15%. The table sets out the corporate tax penalties in Cabinet Decision No. 75 of 2023 (effective 1 August 2023).
| Scenario | Penalty |
|---|---|
| Voluntary disclosure of an error, filed before an audit notice | 1% of the tax difference per month or part month, from the day after the return due date until you submit |
| Error not disclosed before an audit notice, then disclosed | Fixed 15% of the tax difference, plus 1% per month from the due date until you submit |
| Error never disclosed | Fixed 15% of the tax difference, plus 1% per month from the due date until the FTA issues a tax assessment |
| Tax difference not paid on time | 14% per annum, charged monthly; due date is 20 business days from the disclosure submission |
| Incorrect return | AED 500, unless corrected before the filing deadline |
Penalty schedule as published in Cabinet Decision No. 75 of 2023, checked 02 November 2026. Cabinet Decision No. 129 of 2025 revised the UAE administrative penalty framework from 14 April 2026; we couldn't open its official text, so confirm the current annex on the FTA or Ministry of Finance site before you rely on a figure.
A simplified, hypothetical example: say a SHAMS trading company's return, due on 30 September 2026, understated tax by AED 100,000, and the company discloses on 15 December 2026. That period touches three months, so the 1% charge runs for three months: AED 3,000, plus the AED 100,000 itself. Had the FTA issued an audit notice first, the fixed 15% (AED 15,000) would sit on top of the monthly charge.
1% per month: penalty on the corporate tax difference for a voluntary disclosure made before an audit notice, against a fixed 15% plus 1% per month if the FTA gets there first. Source: Cabinet Decision No. 75 of 2023, penalty annex, checked 02 November 2026.
How do you submit a corporate tax voluntary disclosure?
You submit it to the FTA through your EmaraTax account, following the form and procedure the FTA prescribes. We couldn't verify the screen-by-screen steps for corporate tax from an official FTA page, so the sequence below stays at the level the law supports.
- Establish what went wrong: identify the return, assessment or refund application, and the correct figures.
- Calculate the tax difference, which is the gap between the tax as filed and the tax as it should have been.
- Gather the working papers that support the corrected position, because the FTA can ask for them.
- Submit the voluntary disclosure through your EmaraTax account within 20 business days of discovering the error where the amount exceeds AED 10,000.
- Pay the additional tax within 20 business days of submission, to avoid the 14% per annum late-payment penalty.
- Expect the FTA to charge the 1% monthly penalty on the tax difference; confirm the amount on your EmaraTax account.
What happens if you miss the window or the FTA moves first?
Once the FTA notifies you of an audit, the fixed 15% penalty applies to any error you hadn't yet disclosed. The Tax Procedures Law treats failing to disclose before an audit notice as a violation, and Article 46(5) caps voluntary disclosures at five years after the end of the relevant tax period.
What most guides don't tell you
- The 1% clock starts at the return due date, not at discovery. A company that finds an error eleven months late has already accrued roughly a year of penalty before it files, so speed after discovery matters less than most owners assume; the penalty you can still control is the number of additional months.
- The audit notice is the cut-off, not the assessment. Cabinet Decision No. 75 of 2023 looks at whether you disclosed before being notified of an audit. If your auditor, bank or an investor's due diligence team flags a problem, disclose before the FTA writes to you.
- Errors with no tax effect still need fixing. Article 10(5) requires a voluntary disclosure for an error that doesn't change the tax due, so a wrong classification or an omitted disclosure item isn't something to leave for the next filing.
- The payment clock is separate. The 20 business days to pay run from the submission date, so filing a disclosure without cash set aside moves you from one penalty to another (late payment).
If you'd rather not track these dates by hand, the free UAE compliance calendar lists your company's tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.
Frequently asked questions
Can I amend a corporate tax return after filing?
Yes: if the filed return understated your tax or contained an error, the Tax Procedures Law requires a voluntary disclosure rather than a quiet resubmission. Cabinet Decision No. 75 of 2023 waives its AED 500 incorrect-return penalty only where the error is corrected before the filing deadline.
What are the penalties for incorrect corporate tax returns?
Cabinet Decision No. 75 of 2023 sets AED 500 for an incorrect return unless it's corrected before the filing deadline, plus the voluntary disclosure penalties on any tax difference. Cabinet Decision No. 129 of 2025 revised the penalty framework from 14 April 2026, so check the current schedule before you quantify.
How do I pay corporate tax owed after a voluntary disclosure?
Cabinet Decision No. 75 of 2023 sets the payment due date at 20 business days from the date you submit the disclosure. Unpaid tax then attracts a late-payment penalty of 14% per annum, charged monthly.
What are the penalties for not filing a corporate tax return?
Cabinet Decision No. 75 of 2023 charges AED 500 for each month or part of a month for the first 12 months and AED 1,000 a month from the 13th month. Filing late is a separate matter from correcting a return you already filed, which is what a voluntary disclosure does.
Which deadlines apply to your company?
A missed return date is what starts the 1% monthly clock. The free UAE compliance calendar is a calendar of your company's UAE tax and compliance deadlines, personalised from a few questions, as a PDF and calendar file.
About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn
Sources
- Federal Decree-Law No. 28 of 2022 on Tax Procedures (Ministry of Finance)
- Cabinet Decision No. 74 of 2023, Executive Regulation of the Tax Procedures Law (UAE Legislation portal)
- Cabinet Decision No. 75 of 2023 on Administrative Penalties, Corporate Tax (Ministry of Finance)
- Ministry of Finance: amendments to Tax Procedures Executive Regulations effective April 2026
- Federal Tax Authority (EmaraTax and guidance)
Last checked: 02 November 2026
This is general information, not tax or legal advice for your specific situation.