The Federal Tax Authority (FTA) is urging corporate taxpayers across the UAE to register for corporate tax and file returns within the legal deadline to avoid administrative penalties, under a limited-time waiver introduced by Cabinet Decision.
The waiver applies to both taxable entities and exempt persons required to register, provided they submit their corporate tax registration and file their first tax return or annual declaration within seven months from the end of their first tax period.
The FTA clarified that the exemption from late registration fines only applies to the first tax period, regardless of whether the due date falls before or after the decision came into effect.
UAE Corporate Tax
The Authority emphasised that this grace period offers businesses a valuable opportunity to ensure full compliance without incurring fines — but warned that delays beyond the 7-month deadline will trigger penalties under the UAE’s Corporate Tax Law.
Key waiver conditions:
- Entities must register for corporate tax through the FTA’s EmaraTax platform
- First tax return or declaration must be filed within seven months from the end of the entity’s first tax period
- Applies to both taxable businesses and exempt persons required to register
The waiver campaign forms part of the FTA’s wider drive to support businesses in meeting their tax obligations, while building a culture of voluntary compliance in line with international best practices.
Campaign outreach includes:
- Nationwide in-person and online workshops to educate businesses
- Clarifications on taxable income, accounting standards, compliance rules, and registration processes
In one such workshop recently held in Abu Dhabi, 940 business representatives attended to better understand the implications of the Corporate Tax Law and the conditions tied to the penalty exemption.
FTA experts explained how to determine and calculate taxable income, comply with accounting standards, and register via the EmaraTax digital platform. A Q&A session followed, addressing specific concerns from participants.
The Authority concluded by urging businesses in the UAE to review the Corporate Tax Law, Executive Decisions, and user guides available on the FTA’s website to ensure they make full use of the exemption and avoid unnecessary financial penalties.
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