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The Federal Tax Authority (FTA) has reiterated its call for companies and certain exempt persons subject to Corporate Tax in the UAE to complete their registration and file their first tax returns by Wednesday, July 31, in order to benefit from the Penalty Waiver Initiative for late registration.
As of now, more than 33,900 registrants have already benefited from the initiative, according to the FTA. The announcement, made via a press release and reported by WAM, emphasises that timely action through the EmaraTax digital platform is essential to qualify for the penalty exemption.
The initiative applies to businesses whose first tax period follows the calendar year—from January 1 to December 31, 2024. To qualify for the waiver, eligible registrants must both complete their Corporate Tax registration and file their first Corporate Tax Return (or annual declaration for exempt persons) no later than seven months from the end of their first financial year—by July 31, 2025, for most.
Failure to meet the deadline will result in the automatic imposition of a late registration penalty of Dhs10,000, the FTA warned.
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The FTA clarified that the penalty waiver only applies to the first tax period of a taxable or exempt person and that there is no need to file a separate request for penalty reconsideration. If a penalty has already been paid, the Dhs10,000 amount will be automatically credited to the taxpayer’s Corporate Tax account in EmaraTax. This credit can either be used to offset future tax liabilities or refunded by submitting a refund application.
To help taxpayers understand eligibility criteria and procedural requirements, the FTA has published a detailed public clarification document. It explains the conditions for benefiting from the waiver, outlines the refund mechanism for previously paid penalties, and provides examples across different scenarios. The document is available on the FTA’s official website under the title: Waiver of Administrative Penalty for Failure to File Corporate Tax Registration within the Prescribed Period.
The FTA encouraged all eligible entities to act promptly, stating that early compliance not only avoids financial penalties but also supports the broader objective of ensuring a smooth and effective rollout of the UAE’s Corporate Tax regime.
