The UAE’s Federal Tax Authority (FTA) has seen a notable uptake in corporate tax registrations following the introduction of a late-registration penalty waiver. Registrations have climbed to 576,000 entities, up 38,000 since April, the authority announced this week.
The waiver removes the standard Dh10,000 fine for late registration, provided companies file their first corporate tax return or annual declaration within seven months of the end of their first tax period. That window is now shorter than the usual nine‑month deadline, but applies only to the inaugural tax year.
Khalid Ali Al Bustani, FTA director general, said the initiative aims to encourage voluntary compliance, support business growth, and ensure transparency. He added that the rise in registrations reflects growing awareness of tax obligations across sectors.
The FTA warned that firms hoping to benefit must complete both registration and return filings via EmaraTax within the new timeframe. Those who have already been fined may have their penalties refunded or credited to their tax account.
The waiver applies to both taxable and exempt persons required to register, and even those who missed deadlines prior to the waiver’s introduction can qualify if they meet the conditions.
This policy is part of broader UAE efforts to integrate corporate tax into its financial framework, following the launch of the federal regime in 2023. Advisory firms have described the measure as a pragmatic step that eases the transition for SMEs and new businesses.
