Unregistered Corporate Taxpayers Urged To Take Advantage Of Late Registration Penalty Waiver By FTA

In Abu Dhabi, the Federal Tax Authority (FTA) recently hosted a workshop attended by about 940 business representatives and stakeholders. The event aimed to encourage unregistered corporate taxpayers to promptly submit their tax registration applications. This workshop is part of the FTA's broader campaign to educate businesses on tax compliance and benefit from exemptions on administrative fines for late registration.

The FTA's initiative includes a series of workshops across the UAE, both in-person and via video conferences. These sessions clarify income determination rules under corporate tax law and outline compliance procedures. The exemption applies only to the first tax period for registered taxpayers or exempt persons, regardless of when their first tax return is due relative to the new decision's implementation.

During the Abu Dhabi workshop, FTA experts detailed how to calculate income subject to corporate tax, understand tax liabilities, and adhere to accounting standards. They also explained financial statement preparation based on applicable accounting standards, including accrual accounting principles for recognising income and expenses.

The workshop included discussions on financial assets and liabilities definitions, equity accounting methods under IFRS, and cost accounting standards application. A demonstration of EmaraTax, the digital platform for tax services, was provided. Participants learned about registration procedures, identifying taxable persons, applicable rates, tax periods, and compliance requirements with the Corporate Tax Law.

The FTA emphasised that taxpayers must file their returns within seven months from their first tax period's end to qualify for penalty exemptions. This requirement applies whether the first return is due before or after implementing the new decision. The Authority also highlighted its comprehensive engagement strategy through awareness campaigns to ensure smooth compliance with corporate tax obligations.

Engagement Strategy for Voluntary Compliance

The ongoing campaign started in 2023 across the UAE and covers various tax topics to introduce legislation requirements for corporate tax compliance. These programmes are tailored for different categories using modern technologies to facilitate easy access to information. The FTA aims to foster voluntary compliance through a robust framework aligned with global best practices.

At the workshop's conclusion, FTA personnel conducted a Q&A session with participants. The Authority urged taxpayers to familiarise themselves with available resources like the Corporate Tax Law, Executive Decisions, and Guides on its website. This effort is part of ensuring taxpayers meet their obligations effectively.

With inputs from WAM