The Federal Tax Authority (FTA) has started implementing a new UAE Cabinet Decision that exempts certain corporate taxpayers from administrative penalties linked to late registration—provided they meet specific submission deadlines.
The move is part of a broader push to support voluntary tax compliance and streamline registration processes.
Under the exemption, eligible businesses must submit their first corporate tax return or annual declaration within seven months of the end of their initial tax period or financial year—shorter than the previous nine-month window. This requirement applies regardless of whether the original deadline was before or after the decision took effect.
The FTA clarified that those who already paid late submission penalties but meet the exemption criteria will receive refunds credited to their accounts. Similarly, taxpayers who filed returns before the decision’s implementation and were penalised will also be reimbursed.
Khalid Ali Al Bustani, Director-General of the FTA, urged unregistered businesses to register promptly via EmaraTax and take advantage of the penalty waiver. He emphasised the FTA’s commitment to transparency and flexibility in line with evolving tax regulations, adding that compliance plays a critical role in supporting national economic growth.
More than 543,000 corporate tax registrations have been recorded as of Q1 2025, reflecting increased awareness among businesses. The FTA said it will continue to engage with the private sector to provide guidance and address challenges in meeting tax obligations.
The exemption applies to all taxable entities—whether they have registered late, paid the penalty, or not registered yet—provided they submit their tax returns within the specified seven-month window. Businesses are encouraged to review the relevant laws and guidelines available on the FTA’s official website.
News Source: Emirates News Agency
