emirates7 - The Federal Tax Authority (FTA) announced a rise in the number of beneficiaries taking advantage of the Corporate Tax Late Registration Penalty Waiver initiative. This waiver is available to Taxable Persons and specific categories of Exempt Persons who were obligated to register with the FTA but missed the registration deadline.
To qualify for exemption from the AED 10,000 Corporate Tax Late Registration Penalty, these entities must submit their Tax Return (or annual declaration) within seven months from the end of their first Tax Period (or Financial Year), instead of the previously allotted nine months.
The FTA clarified that the waiver applies exclusively to the first Tax Period of the Taxable Person (or the Exempt Person required to register), regardless of whether the original due date for submitting the Tax Return or declaration occurred before or after the new rule took effect.
Khalid Ali Al Bustani, Director General of the FTA, underscored the need for unregistered businesses subject to Corporate Tax to promptly complete their registration and file their Tax Returns via the “EmaraTax” platform. He noted that by meeting the deadlines, eligible entities can benefit from the Cabinet Decision on administrative penalty waivers, specifically those relating to delays in registration.
Al Bustani stressed that this initiative is part of a broader strategy aimed at supporting the business community and encouraging voluntary compliance with tax laws. It is designed to help businesses avoid penalties, enhance tax transparency, and foster a fair and sustainable legislative environment. The initiative also supports economic development by maintaining high standards in tax system performance and governance.
He highlighted the initiative’s success, citing a significant rise in Corporate Tax registrations—from 538,000 before the waiver’s introduction in April 2025 to 576,000 afterwards—an increase of 38,000. Many businesses met the deadline for submitting their Tax Returns and declarations to benefit from the penalty exemption.
These figures, Al Bustani noted, clearly demonstrate the initiative’s effectiveness and the growing awareness of tax compliance among businesses in the UAE. He added that the FTA remains committed to engaging with the business community through awareness efforts and open dialogue to address any obstacles they may face. The authority is also working closely with other relevant entities to spread awareness of the importance of the waiver initiative and urge eligible unregistered businesses to act promptly.
To qualify for exemption from the AED 10,000 Corporate Tax Late Registration Penalty, these entities must submit their Tax Return (or annual declaration) within seven months from the end of their first Tax Period (or Financial Year), instead of the previously allotted nine months.
The FTA clarified that the waiver applies exclusively to the first Tax Period of the Taxable Person (or the Exempt Person required to register), regardless of whether the original due date for submitting the Tax Return or declaration occurred before or after the new rule took effect.
Khalid Ali Al Bustani, Director General of the FTA, underscored the need for unregistered businesses subject to Corporate Tax to promptly complete their registration and file their Tax Returns via the “EmaraTax” platform. He noted that by meeting the deadlines, eligible entities can benefit from the Cabinet Decision on administrative penalty waivers, specifically those relating to delays in registration.
Al Bustani stressed that this initiative is part of a broader strategy aimed at supporting the business community and encouraging voluntary compliance with tax laws. It is designed to help businesses avoid penalties, enhance tax transparency, and foster a fair and sustainable legislative environment. The initiative also supports economic development by maintaining high standards in tax system performance and governance.
He highlighted the initiative’s success, citing a significant rise in Corporate Tax registrations—from 538,000 before the waiver’s introduction in April 2025 to 576,000 afterwards—an increase of 38,000. Many businesses met the deadline for submitting their Tax Returns and declarations to benefit from the penalty exemption.
These figures, Al Bustani noted, clearly demonstrate the initiative’s effectiveness and the growing awareness of tax compliance among businesses in the UAE. He added that the FTA remains committed to engaging with the business community through awareness efforts and open dialogue to address any obstacles they may face. The authority is also working closely with other relevant entities to spread awareness of the importance of the waiver initiative and urge eligible unregistered businesses to act promptly.