Tax Registration Penalty
The Federal Tax Authority has announced an initiative to waive the administrative penalty for Late Submission of Corporate Tax Registration Applications within the specified deadline. This initiative is intended to further support the UAE business sector by enabling mechanisms that allow taxpayers to meet their tax obligations.
FTA page to refer: https://tax.gov.ae/en/about.fta/waiver.of.penalties.aspx
Waiver Conditions
To qualify for the waiver of the penalty for late corporate tax registration, the taxable person must submit the tax return within seven (7) months from the end of the first tax period. Tax Return Filing in the UAE is a mandatory requirement.
As for persons exempt from corporate tax, they are required to submit the annual declaration within seven (7) monthsfrom the end of their first financial year.
Target Group
All entities required to Register for Corporate Tax in the UAE who have either incurred an administrative penalty due to late submission of the registration application or have not yet submitted their registration application.
Cases Where the Waiver Applies
Scenario 1:
The taxpayer completed the CT Registration Process with the FTA and was issued a penalty for late registration, which has not yet been paid. The taxpayer then submitted the tax return within seven (7) months from the end of the first tax period. The individual will be exempted from the penalty. UAE Corporate Tax Penalties can be referred here https://uaelegislation.gov.ae/en/legislations/2161/regulations/852/download
Scenario 2:
The taxpayer completed the registration and was issued a penalty for late registration, which has not yet been paid. The taxpayer has not yet submitted the tax return for the first tax period. In this case, the taxpayer must submit the tax return or the annual declaration within seven (7) months from the end of the first tax period, and the penalty will be waived. Tax Consultants in Dubai and other emirates can help to grab this opportunity.
Scenario 3:
The taxpayer completed the registration and was issued a penalty for late registration, which has already been paid. However, the tax return for the first tax period has not yet been submitted. In this case, the taxpayer must submit the tax return or the annual declaration within seven (7) months from the end of the first tax period, the paid amount will be refunded to their tax account.
Scenario 4:
The taxpayer completed the registration, was issued a penalty for late registration, and has already paid the penalty. The taxpayer also submitted the tax return within seven (7) months from the end of the first tax period. In this case, the amount paid will be refunded to their tax account.
Scenario 5:
The taxpayer has not submitted a corporate tax registration application.
In this case, the taxpayer must complete the registration and submit the tax return or the annual declaration within seven (7) months from the end of the first tax period. The penalty will be waived if it is imposed.
To benefit from the waiver, submit your registration applications and tax returns or annual declarations via the EmaraTax platform.
At Bens Chartered Accountants, we pride ourselves on having a team of qualified professionals with over 20 years of experience in accounting, tax, audit, and business advisory across diverse sectors in the UAE and internationally. Our deep understanding of local regulations and global best practices enables us to deliver tailored solutions that ensure regulatory compliance, financial clarity, and business growth.
Whether you need Corporate Tax filing in UAE, VAT filing in UAE, audit services in UAE, or strategic financial advisory, our experts are here to support you at every step of your compliance journey. We bring professional integrity, technical expertise, and a client-first approach to every engagement.
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