Waiver of Late Corporate Tax Registration Penalties
02 May 2025
The UAE Ministry of Finance and the Federal Tax Authority have launched a new initiative to waive administrative penalties for businesses and certain exempt persons who failed to register for Corporate Tax within the required timeframe.
This initiative has been formalized through a Cabinet Decision (to be issued soon) and is aimed at promoting early and voluntary tax compliance in the first year of corporate tax implementation.
Eligibility Criteria:
To qualify for the penalty waiver:
The taxpayer (or certain exempt person) must file the Corporate Tax return or annual statement within 7 months from the end of their first tax period as prescribed under the Corporate Tax Law.
Additional Clarifications:
Refund of Collected Penalties:
The FTA has confirmed that administrative penalties already collected will be refunded to eligible taxpayers who meet the criteria.
Purpose of the Initiative:
- To encourage voluntary and timely compliance
- To ease the financial burden on businesses
- To support businesses during the transition to the new tax regime
- To reinforce the UAE’s commitment to a competitive, business-friendly tax environment
Recommended Actions for Businesses:
- Review your Corporate Tax registration status immediately
- If not registered, initiate and complete the registration process without delay
- Ensure Corporate Tax return or annual declaration is filed within the 7-month window from the end of the first tax period
