UAE Eases Corporate Tax Transition with Penalty Waiver for Late Registration

Businesses Can Avoid Fines If Tax Returns Are Filed Within 7 Months

Dubai: The UAE Ministry of Finance and the Federal Tax Authority (FTA) have introduced a relief measure for businesses and certain exempt entities that missed the corporate tax registration deadline.

Under this initiative, eligible companies can avoid late registration penalties if they submit their first corporate tax return or annual statement within seven months from the end of their first tax period, as per the Corporate Tax Law.

This move aims to encourage early compliance, reduce the financial burden on businesses, and support a smooth shift into the new corporate tax system. Additionally, businesses that already paid penalties but meet the conditions will receive refunds.

Authorities stated that this step is part of broader efforts to support the business community, simplify tax procedures, and promote voluntary compliance in the first year of the new tax framework.

Conditions for Waiver:

The person must be subject to corporate tax or one of the exempt persons required to register with the Federal Tax Authority.
To submit the tax return or annual declaration within a period not exceeding 7 months from the end of the first tax period.
To fully comply with the provisions of the Corporate Tax Law.

FOR MORE INFORMATION, CONTACT US :

Phone: +971 52 1952 532 / +971 4 240 1110

Mail-Id: info@yugaaccounting.com

Website: www.yugaaccounting.com