Guide on penalties in the UAE

FINE FOR VISA OVERSTAY.

A penalty for expiry of visa was lowered from AED 100 to AED 50. This fee is charged every day. Mind the dates of termination of different visas: whether it is tourist, visit, or residence one. This date is located on visa card right after its number. You can look it up on your Emirates ID, since these two documents are unified. Moreover, to check whether your visa is valid or not you can do it online on relevant websites.

FINE FOR AN UNFORMED EMLPOYEE.

In case an expat is caught working for another company without official permission, the hiring company will be fined for a sum of money starting from AED 50, 000.

FINE FOR NOT REGISTERING A FIRM WITH THE TAX SERVICE.

There are companies that are exempt from paying corporate income tax at 9% rate and they only pay VAT. If their profit does not exceed AED 375,000, then they are exempted from paying corporate tax. Then they pay VAT only, so if income doesn’t exceed 375 000 AED then there is no need to register with the tax authority.

Since the entry into force of 9% corporate tax rate, companies which are subject to taxes must register with the tax service. If you neglect to register your company with the tax service as it is required, you will pay AED 10, 000. The risks of receiving such fines have doubled recently.

FINE FOR NOT PROVIDING DATA ON THE COMPANY’S BENEFICIAL OWNERS.

You should ensure that the state body regulating the company is informed about the beneficial owners (real owners). Similarly, in case of any change in the composition of the beneficial owners, information is due to be provided to the regulatory authority within 14 days. The fine for failure to provide or late provision commence from AED 15,000.

FINE FOR NOT CONFIRMING ECONOMIC PRESENCE.

You are to confirm the company’s economic presence. If the company does not submit a notification on time, the fine will start from AED 20,000. Whether you need to confirm the economic presence of the company or not is based not on the type of activity indicated on the company's license, but on the basis of the actual activities that the company conducts.

FINE FOR NON-COMPLIANCE WITH EMIRATISATION.

Emiratisation standards apply to all UAE companies employing 50 or more employees. For each person who is not hired, the company receives a fine starting from AED 6,000 per month.