UAE Corporate Tax: Rush to meet July 31 deadline - or face Dh10,000 penalty
To date, nearly 34,000 UAE companies benefit from waiver of late registration fine
Dubai: There is a ‘last-minute rush’ as UAE businesses that got penalised for late corporate tax registration try to file their 2024 tax returns before July 31.
This was the deadline given by the UAE tax authority for these businesses to have their Dh10,000 late registration fines waived.
“Some companies that registered at the last minute are still awaiting approval on their registration to file the tax returns and benefit from the penalty waiver,” said Sumayya Zain, founder of Hallmark International Auditors.
"Even if you file your corporate tax return by July 31, 2025, you can pay the taxes by September 30, 2025 and benefit from the penalty waiver."
Some companies that registered at the last minute are still awaiting approval on their registration to file the tax returns and benefit from the penalty waiver
The other hurdle is that amendments to a business’s registration can take time. Only after these amendments are approved and incorporated can companies proceed with filing their tax return.
As of today, the number of UAE companies that had their late registration penalty waived total 33,900, according to the FTA.
To qualify, these companies had to submit the 2024 financial year at the end of 7 months – which is July 31, 2025 – rather than end September for the rest.
July 31 will be the ‘final deadline to benefit from the initiative for the majority of corporate tax payers whose first tax period aligns with the calendar year from 1 January to 31 December 2024’, said the FTA in a statement.
To qualify, these entities must
Complete all procedures related to submitting their registration applications and filing their corporate tax returns through the EmaraTax platform before the end of July.
Failure to meet the requirements and completing the necessary procedures by July 31 will result in the ‘ineligibility for the waiver and the imposition of a late registration penalty of Dh10,000’ for non-registered businesses.
What's the status on fines already issued?
A tax payer who was charged a late registration penalty and has paid it must submit 2024 tax returns within 7 months from the end of the first tax period.
If this condition is met, the penalty will be waived, and the amount paid will be refunded to the taxpayer’s account, which can be used to settle future tax liabilities.
The FTA made a point to note that the penalty waiver initiative 'applies only to the first tax period' of the taxable person (or exempt persons who are required to register with the FTA).
"Even for entities with revenue below Dh50 million, the financial statements must be signed and stamped by management prior to corporate tax return submission," said Sumayya. "This is mandatory, even if an audit is not required.
Taxpayers are required to evaluate and, if applicable, make the following elections in their first return:
'Realisation basis election' for taxation of gains on certain assets and liabilities.
Transitional provisions relating to adjustments for pre-corporate tax asset revaluations and liabilities and accumulated profits.
These elections can have long-term tax implications and considered carefully.
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