The UAE’s Federal Tax Authority (FTA) has reiterated its call for businesses to register for Corporate Tax by Wednesday, July 31, 2025, warning that failure to do so will result in a penalty of AED 10,000 (USD 2,723) for late registration.
The warning applies to Corporate Taxpayers and certain exempt persons whose first tax period coincides with the 2024 calendar year. The FTA has linked the registration deadline to the Penalty Waiver Initiative, which exempts eligible entities from late penalties—provided they submit their registration applications and file their Tax Returns via the ‘EmaraTax’ platform by the end of July.
Over 33,900 Entities Already Benefiting
According to the FTA, more than 33,900 registrants have already benefited from the waiver initiative, which is aimed at easing the transition into the new Corporate Tax regime. It applies only to the first Tax Period of eligible taxable persons or exempt persons.
Conditions for Waiver Eligibility
To qualify for the automatic exemption, registrants must meet the following conditions:
- File the Corporate Tax Return or submit the annual declaration within seven months from the end date of their first Tax Period or financial year.
- Complete all registration procedures on the ‘EmaraTax’ platform by July 31, 2025.
Failing to meet these criteria will make the entity ineligible for the waiver, and the AED 10,000 penalty will be enforced for non-registration.
Refunds for Previously Paid Penalties
The FTA has clarified that if a taxpayer has already paid the late registration penalty, the AED 10,000 amount will be automatically credited to their Corporate Tax account in EmaraTax. This balance can be used to offset other tax obligations or can be refunded upon request via the platform.
Public Clarification Issued
A public clarification titled “Waiver of Administrative Penalty for Failure to File Corporate Tax Registration within the Prescribed Period” is now available. The document outlines:
- Eligibility requirements
- Filing deadlines
- Waiver conditions
- Examples of application scenarios
- Refund mechanisms
Importantly, the waiver applies only to the first Tax Period, and no formal reconsideration or penalty waiver request is needed if conditions are met.
The FTA continues to urge businesses and exempt persons required to register to act promptly in order to avoid unnecessary financial penalties and to ensure compliance under the UAE’s evolving tax framework.
