UAE Announces Waiver of Penalties for Late Corporate Tax Registration

The Riffle

Overview

In a move to support businesses during the initial year of Corporate Tax implementation, the Federal Tax Authority (FTA) has confirmed that the AED 10,000 penalty for late Corporate Tax registration has been waived, provided specific conditions are met. Furthermore, entities that have already paid this penalty may be eligible for a refund.

Who Is Eligible?

The waiver applies to:

• Businesses that have already incurred penalties due to late corporate tax registration.

• Entities that have not yet submitted their corporate tax registration applications but were required to do so.

Waiver Conditions

To benefit from the initiative, entities must:

• Submit their corporate tax registration application promptly.

  File their corporate tax return within 7 months from the end of their first financial year.

• If exempt from tax, submit their annual declaration within the same 7-month window.

• This ensures that compliance is achieved before the deadline without further penalties.

How to Apply

All applications must be submitted via the EmaraTax platform—the official digital tax platform of the FTA.

The authority recommends that all taxable persons act quickly to take advantage of this opportunity and avoid long-term compliance issues.

Why This Matters

Corporate tax is now a vital part of the UAE’s regulatory landscape. Penalties for non-compliance can significantly affect your operations and finances. This initiative is not just a second chance—it’s a reminder to embed tax compliance into your business strategy.

Need Assistance?

A detailed guide is available through the official FTA platform. Businesses are encouraged to review it and act promptly to avoid unnecessary penalties.

For more details, read the full briefing document here :