The UAE Federal Tax Authority (FTA) has initiated a penalty waiver program for businesses that missed the corporate tax registration deadline, provided they submit their tax returns within seven months of the end of their first tax period.
Eligibility criteria
To qualify for the waiver, entities must:
- Submit the corporate tax return within seven months from the end of their first tax period.
- Ensure full compliance with the UAE Corporate Tax Law, including accurate financial statements and proper record-keeping.
This initiative applies to all entities required to register for corporate tax, including those that have:
- Already registered but were late and incurred penalties.
- Not yet registered and are past the deadline.
For entities that have paid penalties, the FTA will refund the amounts to their tax accounts upon meeting the waiver conditions.
As of the first quarter of 2025, over 543,000 entities have registered for corporate tax, indicating a growing awareness of compliance requirements.
Businesses are advised to consult the FTA’s official website for detailed guidelines and to ensure adherence to all tax obligations.
