If the 30 September Corporate Tax deadline has passed and you have not filed or paid, the worst thing to do is nothing. Penalties for lateness grow the longer they are left, and the situation is far more recoverable if you act now than if you wait to be contacted. Missing the deadline is a problem, but a manageable one. Here is what actually happens when you are late, and the steps that limit the damage.
What being late triggers
Filing and payment are separate obligations due on the same date, so a missed deadline can trigger both a late-filing penalty and a late-payment penalty. The late-filing penalty is a fixed amount that increases the longer the return is outstanding. The late-payment penalty is a percentage on the unpaid tax that grows over time. Both are set under the administrative penalties framework, and both keep increasing until you act, which is precisely why speed matters.
| If you are late on | What happens | What limits it |
|---|---|---|
| Filing the return | A late-filing penalty that grows over time | File as soon as possible |
| Paying the tax | A late-payment penalty on the unpaid amount | Pay as soon as possible |
| An error you then find | Additional exposure if the FTA finds it first | Voluntary disclosure |
File and pay now, not later
The single most important step is to stop the clock. Because both penalties increase with time, filing the outstanding return and paying the tax now, even a few days after the deadline, is materially better than waiting weeks. There is no advantage in delay once the deadline has passed; every day added only increases the late-payment exposure. Get the return in and the payment cleared as your immediate priority.
Once the deadline has passed, delay only adds cost. The late-payment penalty grows with time, so filing and paying now, days late, is far better than being weeks late while you decide what to do.
If you also find an error
Sometimes lateness comes with a mistake, a figure that was wrong or a position that does not hold. Where you discover an error in what you have filed, correcting it through a voluntary disclosure generally carries a lower consequence than leaving it for the authority to find. Being late and then proactively correcting is a better position than being late and hoping the error is missed. The framework consistently rewards moving first.
Being late is not being unregistered
One reassurance: a business that is late to file or pay is still a registered taxable person that can put things right. This is different from never registering at all, which carries its own fixed penalty and leaves you outside the system. If you have missed the return deadline but are registered, the path forward is clear: file, pay, and if needed disclose. The mechanism to become compliant again is available and straightforward.
What to do about it
If you have missed the deadline, act today. File the outstanding return and pay the tax due as your first priority, since both penalties grow with delay. If you also find an error, correct it through voluntary disclosure rather than waiting. And if the reason you are late is that the numbers or positions were too difficult to finish in time, get help now to complete them, rather than letting the delay extend. Lateness is recoverable, and the recovery starts the moment you stop waiting.
This article is general information and is not tax advice. Penalties are set under the administrative penalties framework and Federal Decree-Law No. 47 of 2022 and depend on your circumstances. We would be glad to help you file late, pay, and correct any error.