UAE Launches Initiative to Waive Penalties for Late Corporate Tax Registration

UAE Launches Initiative to Waive Penalties for Late Corporate Tax Registration

In a strategic move to support businesses and promote a culture of tax compliance, the UAE Federal Tax Authority (FTA) has introduced a new initiative offering an exemption from administrative penalties for companies that have delayed their corporate tax registration.

This initiative reflects the FTA’s commitment to creating a cooperative tax environment that encourages businesses to meet their obligations under the Corporate Tax Law without facing undue financial strain.

Who Can Benefit?

Businesses that missed the initial deadline to register for corporate tax can now avoid administrative penalties, provided they:

• Submit their corporate tax registration application, and

• File either their first corporate tax return or the annual declaration

• Within 7 months from the end of their first tax period.

Objectives of the Initiative

The initiative is designed to:

• Promote voluntary compliance with the Corporate Tax Law,

• Reduce financial and administrative burdens on businesses, particularly SMEs,

• Encourage timely submission of returns and declarations, and

• Provide a grace period for businesses to catch up on their obligations without penalty.

What Businesses Should Do Now

If your business has not yet registered for corporate tax or has delayed submitting its returns, this is a crucial opportunity to act without incurring penalties. Taking timely action can save your company from future legal and financial repercussions.

Need Help?

ALWAHAT ACCOUNTS AND INTERNAL AUDIT SERVICES is here to guide you through the registration and compliance process. Our expert team provides end-to-end corporate tax consultancy and filing support tailored to UAE regulations. We can help you benefit from this initiative while ensuring your business remains compliant with all legal requirements.

📞 Contact us today to get started with your corporate tax registration and filing.

Disclaimer: This blog is for informational purposes only and should not be considered as official tax advice. Businesses are encouraged to refer to official publications and announcements by the UAE Federal Tax Authority (FTA) for the most accurate and updated information.