FTA Urges Corporate Tax Registrants To Act Quickly For AED10,000 Penalty Waiver Benefits

The Federal Tax Authority (FTA) has reported a rise in the number of individuals benefiting from the Corporate Tax Late Registration Penalty Waiver initiative. This applies to Taxable Persons and certain Exempt Persons who missed the deadline for Corporate Tax registration. The waiver exempts them from the AED10,000 penalty if they submit their Tax Return within seven months from the end of their first Tax Period.

Khalid Ali Al Bustani, Director General of the FTA, stressed the importance of submitting Corporate Tax registration applications promptly. He urged non-registered persons to register and file their returns via the "EmaraTax" platform. Meeting these deadlines allows eligible individuals to benefit from the UAE Cabinet Decision on administrative penalties waiver, avoiding fines for late registration.

The waiver initiative is applicable only for the first Tax Period of those required to register, regardless of whether their due date was before or after this decision took effect. Al Bustani highlighted that this initiative is part of a broader strategy to support businesses and encourage voluntary compliance with tax laws, thus avoiding administrative penalties.

Al Bustani noted an increase in Corporate Tax registrations, rising to 576,000 from 538,000 since April 2025 when the waiver was introduced. This reflects an additional 38,000 registrations as many have submitted their returns within the deadline to benefit from the waiver. He stated that these figures demonstrate growing awareness and compliance with tax procedures across UAE business sectors.

"This important initiative comes as part of the comprehensive strategy to support business sectors and encourage voluntary compliance with tax laws and procedures to avoid Administrative Penalties. This contributes to promoting economic growth, ensuring tax transparency and fairness within a legislative environment that keeps pace with developments through sustainable improvement, while maintaining performance quality and managing the tax system with the highest levels of efficiency and accuracy."

Engagement with Business Community

The FTA remains committed to engaging with businesses through various awareness channels. They aim to gather feedback from taxpayers and discuss solutions to any challenges encountered. The authority is working closely with relevant entities to raise awareness about this initiative's significance and encourage non-registered persons to take advantage of it.

Al Bustani emphasized that these indicators reflect the success of the initiative in enhancing tax compliance awareness across all business sectors in UAE. The FTA continues its efforts in collaboration with other entities to promote understanding about this initiative's benefits and necessity for non-registered persons.

The focus on encouraging timely registration aligns with efforts to foster economic growth by ensuring transparency and fairness in taxation within a dynamic legislative framework. This approach aims at maintaining high performance standards while efficiently managing the tax system.

With inputs from WAM