In a significant move to support businesses and enhance compliance, the UAE Ministry of Finance (MoF) and the Federal Tax Authority (FTA) have launched a game-changing initiative: the waiver of late registration penalties under the newly implemented Corporate Tax Law.
This bold step comes as a major relief for companies and exempt persons who missed their corporate tax registration deadline. But there’s a catch — to benefit from this amnesty, businesses must file their tax return or annual financial statements within seven months of the end of their first tax period.
What Does This Mean for Your Business?
This decision offers a valuable second chance to companies that have not yet registered under the Corporate Tax regime. It reflects the UAE government’s proactive approach to encouraging early compliance without imposing harsh penalties.
Here’s what businesses stand to gain:
- No administrative penalties for late registration — if you act now
- Refunds of previously collected fines, for those who meet the requirements
- Smoother compliance journey with fewer financial burdens
- A boost in corporate goodwill and transparency
What You Need to Do
To qualify for the waiver:
- Register with the FTA (if not already done)
- File your corporate tax return or annual statements
- Do it all within 7 months from the end of your first tax period
Failing to meet this deadline may result in the reimposition of administrative penalties — so the time to act is now.
A Welcome Move in the First Year of Corporate Tax
This initiative is a clear sign of the government’s intent to support businesses, especially during the first year of Corporate Tax implementation. It encourages voluntary compliance and reduces the red tape that often discourages early registration.
Moreover, this move aligns with the UAE’s vision of becoming a global hub for business and investment — one that values transparency, competitiveness, and ease of doing business.
Need Help Navigating UAE Corporate Tax?
At The Capital Zone, we help businesses like yours stay compliant, avoid penalties, and file on time. From corporate tax registration to VAT filing and annual audits — we handle it all so you can focus on growing your business.
Get in touch today for a free consultation on how to qualify for the penalty waiver and secure your compliance the smart way.
