FTA Emphasises Urgency Of Registering For Corporate Tax To Avoid Penalties

The Federal Tax Authority (FTA) recently conducted its third workshop of the year in Ras Al Khaimah, focusing on Corporate Tax awareness. This initiative is part of a broader campaign to educate business sectors about taxable income rules under the Corporate Tax framework. The FTA's efforts aim to ensure businesses understand and comply with tax regulations effectively.

Throughout 2025, the FTA plans to continue hosting events both online and in person across all emirates. These workshops have already seen over 2,300 participants from Dubai, Abu Dhabi, and Ras Al Khaimah. Attendees include representatives from various business sectors and stakeholders from both public and private entities involved in taxation.

The FTA stressed the importance for entities subject to Corporate Tax to register promptly. This allows them to benefit from a Cabinet decision that exempts certain taxpayers from administrative penalties for late registration submissions. Entities must submit their registration applications without delay to take advantage of this initiative.

Entities that have completed their tax registration must file their tax returns within seven months after their first tax period ends. This requirement is crucial for meeting exemption conditions from penalties as per the decision. The FTA clarified that this condition applies only to the first tax period, regardless of when the due date falls.

During the Ras Al Khaimah workshop, approximately 440 stakeholders involved in Corporate Tax implementation attended. The FTA representatives addressed participants' questions and provided detailed explanations of the Corporate Tax Law and related decisions. They also discussed compliance requirements, registration procedures via the "EmaraTax" platform, and criteria for determining taxable persons.

The workshop covered applicable rates, tax periods, and how to implement provisions in the Corporate Tax Law. The FTA aims to enhance services continuously to support businesses in complying with tax regulations. Their ongoing awareness initiatives target all taxpayer categories, ensuring information is clear and easy to apply.

The FTA remains committed to creating a supportive tax environment that encourages compliance through these educational efforts. By familiarising businesses with tax legislation and procedures, they aim to facilitate a smooth transition into adherence with new regulations.

With inputs from WAM