By Staff Reporter
The UAE Cabinet has approved a new decision to waive administrative penalties for businesses and certain exempt entities that missed the deadline to register for corporate tax—provided they meet specific compliance conditions moving forward.
Announced by the Ministry of Finance and the Federal Tax Authority, the initiative applies to entities that failed to submit their tax registration applications on time. To benefit from the waiver, eligible taxpayers must file their tax return or annual statement within seven months of the end of their first tax period, in line with the Corporate Tax Law.
The move is part of a broader strategy to foster early compliance and ease the transition into the country’s new corporate tax regime, which came into effect in 2023. It also reflects the authorities’ commitment to reducing financial and administrative burdens on businesses, while reinforcing a culture of voluntary compliance.
As part of the initiative, the FTA confirmed it will also refund administrative fines already collected from those who now meet the exemption criteria.
This decision is expected to strengthen the UAE’s tax compliance framework during the critical first year of implementation. It further aligns with the government’s aim to create a business-friendly environment and maintain its position as a competitive global hub.
News Source: Emirates News Agency
