The UAE Federal Tax Authority (FTA) is offering a limited-time waiver of late registration penalties under the new Corporate Tax Law — but businesses must act before the grace period ends.
Who Can Benefit
- Taxable persons must submit their Corporate Tax registration and first return within 7 months from the end of their first tax period
- Exempt persons must submit their annual declaration within 7 months from the end of their first financial year
Cases Where the Waiver Applies
Scenario 1:
The taxpayer completed the registration process and was issued a penalty for late registration, which has not yet been paid. The taxpayer then submitted the tax return within seven (7) months from the end of the first tax period.
The individual will be exempted from the penalty.
Scenario 2:
The taxpayer completed the registration and was issued a penalty for late registration, which has not yet been paid. The taxpayer has not yet submitted the tax return for the first tax period.
In this case, the taxpayer must submit the tax return or the annual declaration within seven (7) months from the end of the first tax period, and the penalty will be waived.
Scenario 3:
The taxpayer completed the registration and was issued a penalty for late registration, which has already been paid. However, the tax return for the first tax period has not yet been submitted.
In this case, the taxpayer must submit the tax return or the annual declaration within seven (7) months from the end of the first tax period. the paid amount will be refunded to their tax account.
Scenario 4:
The taxpayer completed the registration, was issued a penalty for late registration, and has already paid the penalty. The taxpayer also submitted the tax return within seven (7) months from the end of the first tax period.
In this case, the amount paid will be refunded to their tax account.
Scenario 5:
The taxpayer has not submitted a corporate tax registration application.
In this case, the taxpayer must complete the registration and submit the tax return or the annual declaration within seven (7) months from the end of the first tax period. The penalty will be waived if it is imposed.
Key Conditions
- Applies only to the first tax period
- Submission must be made through the EmaraTax platform as per the conditions of the waver: https://eservices.tax.gov.ae
- Applies to both taxable and exempt persons required to register
This waiver is part of the FTA’s initiative to support businesses and encourage voluntary compliance under the Corporate Tax Law. Don’t miss this opportunity to register and file without penalties.
Need support with Corporate Tax registration or filing? Contact our team today for professional assistance.
