UAE's FTA urges quick Corporate Tax registration to benefit from penalty waiver

Abu Dhabi: The Federal Tax Authority (FTA) is calling on UAE businesses to quickly register for Corporate Tax to benefit from a penalty waiver initiative that exempts them from a Dh10,000 fine for late registration.

As of July 16, the number of registered entities for Corporate Tax has reached 576,000, up from 538,000 in April when the waiver was first announced—an increase of 38,000 registrants.

The Late Registration Penalty Waiver is available to Taxable Persons and some Exempt Persons required to register. To qualify, businesses must submit their registration and first tax return (or annual declaration) within 7 months from the end of their first Tax Period or Financial Year. Previously, the deadline was 9 months.

“This initiative encourages voluntary compliance and helps businesses avoid administrative penalties,” said Khalid Ali Al Bustani, Director General of the FTA. “We’re seeing growing awareness of the importance of timely tax registration and filing.”

The waiver applies only to the first Tax Period, regardless of whether the original tax return deadline was before or after the decision took effect.

The FTA emphasized that both registration and tax return submissions must be completed through the EmaraTax platform within the required timeline to benefit from the waiver.

Al Bustani noted that the increase in registration numbers shows the initiative is working and helping more companies comply with tax obligations. He added that the FTA will continue to work with business groups and other stakeholders to raise awareness and support taxpayers.

The Corporate Tax, introduced in 2023, requires businesses exceeding a specific income threshold to register and file returns annually. Penalties apply for failure to comply with deadlines, but this initiative offers a limited-time opportunity for new registrants to avoid fines—if they act promptly.