In an effort to support businesses and encourage compliance, the UAE Federal Tax Authority (FTA) has introduced a penalty waiver scheme for those who have incurred or are at risk of incurring a late corporate tax registration fine. If you’re a business that missed the registration deadline — you may still have a chance to avoid or recover penalties.
Here’s everything you need to know about this waiver, who it applies to, and what actions you must take to benefit.
What Is the Corporate Tax Registration Penalty Waiver?
Under the new guidelines, businesses that submit their corporate tax return or annual declaration within seven (7) months from the end of their first tax period may qualify for a waiver or refund of the late registration penalty.
This applies to both taxable entities and those exempt from corporate tax.
Waiver Conditions
To benefit from the waiver, the following must be true:
- Taxable persons must submit their corporate tax return within 7 months of the end of their first tax period.
- Exempt persons must submit their annual declaration within the same 7-month window.
Failure to do so may result in permanent penalties.
Who Can Benefit? (Target Group)
This waiver is available to:
- Businesses that have already incurred a late registration penalty but haven’t paid it yet.
- Businesses that have paid the penalty but submitted their return within 7 months and are eligible for a refund.
- Businesses that haven’t registered yet but still have time to complete registration and file on time.
- Exempt entities that need to submit the annual declaration.
Scenarios Where the Waiver Applies
Let’s break down the five most common situations and what you should do in each:
Scenario 1: Penalty Incurred, Not Paid, Return Submitted On Time
You received a late registration penalty but haven’t paid it yet — and you submitted your return within 7 months.
Result: Penalty will be waived.
Scenario 2: Penalty Incurred, Not Paid, Return Not Yet Submitted
You were penalized but haven’t submitted your return yet.
Action: Submit the return or annual declaration within 7 months.
Result: Penalty will be waived.
Scenario 3: Penalty Paid, Return Not Yet Submitted
You paid the penalty, but haven’t submitted your return yet.
Action: Submit the return or annual declaration within 7 months.
Result: The penalty amount will be refunded to your tax account.
Scenario 4: Penalty Paid, Return Already Submitted On Time
You registered late, paid the penalty, and submitted your return on time.
Result: The paid amount will be refunded.
Scenario 5: Not Registered Yet
You haven’t submitted your corporate tax registration application at all.
Action: Register and submit your return or declaration within 7 months of your tax period ending.
Result: If a penalty is issued, it will be waived.
Important Reminder
This waiver program is a limited-time opportunity. If you qualify, acting now can save you thousands in penalties and ensure your business stays compliant.
Need Help Navigating Corporate Tax Compliance?
At The Capital Zone Accounting and Bookkeeping, we provide:
- Corporate Tax Registration & Filing
- Full Compliance Support
- Refund and Waiver Guidance
- Backlog Accounting
- Tax Planning & Management Reporting
Don’t wait until penalties become permanent. Contact us today and we’ll ensure your business is on the right side of the law — and the deadline.
Email: info@thecapitalzone.com
Call/WhatsApp: +971 4 285 0200
Website: www.thecapitalzone.com/contact-us
