By Staff Reporter
The UAE’s Federal Tax Authority (FTA) has announced that more than 68,600 corporate taxpayers have already benefited from the Corporate Tax Late Registration Penalty Waiver initiative since 2025, with the number expected to exceed 91,000 beneficiaries in the coming months.
The initiative, introduced under a UAE Cabinet Decision that came into effect in April 2025, waives administrative penalties for businesses and certain exempt entities that failed to register for Corporate Tax within the legally required timeframe.
According to the FTA, the waiver applies to penalties linked to late Corporate Tax registration from 1 June 2023, provided eligible entities meet specific compliance conditions.
To qualify for the exemption, taxpayers must submit their Tax Return or annual declaration within seven months from the end of their first Tax Period or Financial Year, instead of the standard nine-month period. The FTA clarified that the waiver applies only to the first Tax Period of the taxpayer or exempt entity required to register.
His Excellency Abdulaziz Al Mulla, Director General of the FTA, encouraged unregistered businesses to take advantage of the initiative, describing it as part of the UAE leadership’s broader efforts to maintain a flexible and transparent tax environment while supporting economic growth and voluntary compliance.
He stated that the FTA continues to expand support services and awareness programmes to help taxpayers meet their obligations smoothly and efficiently, thereby strengthening the UAE’s competitiveness as a business destination.
The Authority also revealed that more than 22,000 additional taxpayers are expected to qualify for the waiver in the near future.
Under the initiative, eligible businesses that already paid late registration penalties will automatically receive credits in their EmaraTax accounts. These credits can either be used to offset future tax liabilities or refunded upon request.
The FTA explained that the waiver covers:
- Businesses already registered and penalised, whether the penalty was paid or remains outstanding;
- Businesses that registered but have not yet filed their Tax Return;
- Businesses that have not yet registered but complete registration and file within the specified period.
In all qualifying cases, penalties will either be cancelled or refunded automatically without the need for reconsideration requests.
The Authority urged taxpayers to review the detailed public clarification available on the official Federal Tax Authority website for full eligibility conditions and procedures.
