The UAE has rolled out updated regulations that exempt individuals from penalties for delayed tax registrations.
The Ministry of Finance (MoF), in collaboration with the Federal Tax Authority (FTA), has announced a Cabinet Decision to launch an initiative that waives administrative fines for corporate taxpayers and certain exempt entities who did not submit their tax registration requests to the FTA within the required timeframe.
To be eligible, concerned entities must submit their tax return or annual filing no later than seven months after the end of their initial tax period, in accordance with the Corporate Tax Law.
The Cabinet Decision demonstrates the Ministry of Finance and the Federal Tax Authority’s proactive strategy to foster improved tax compliance.
The initiative is designed to motivate taxpayers to submit their tax returns or yearly filings on time, thereby promoting earlier adherence to statutory obligations.
Moreover, the FTA confirmed that appropriate steps will be taken to reimburse administrative fines from those who fulfil the set conditions.
This initiative reinforces the ongoing commitment of the Ministry of Finance and the Federal Tax Authority to strengthen the tax compliance environment in the UAE, simplify processes, and reduce the financial pressure on businesses.
Its goal is to help taxpayers fulfil their obligations efficiently and take advantage of the exemptions, provided filings are completed within the specified period.
The decision is expected to play a crucial role in supporting better compliance throughout the first year of implementing corporate tax in the UAE.
It highlights the government’s dedication to backing national enterprises by offering incentives that promote voluntary compliance, lessen administrative and financial burdens tied to tax registration, and enhance the UAE’s global competitiveness rankings.
