With the UAE Corporate Tax regime now in effect, many business owners are rushing to comply — and unfortunately, many are falling into a trap: “Free” Corporate Tax registration offers.
At first glance, these offers seem like a smart move to save money. But the reality? They often come with hidden risks, poor compliance, and long-term penalties.
What’s the Catch with Free CT Registration?
- Lack of Legal Understanding
Many of these “free” service providers have limited knowledge of UAE Corporate Tax law. They often file incomplete applications or miss important details — such as the correct start date, business structure, or income declaration. - Wrong Assumptions About Exemptions
We've seen cases where service providers wrongly assumed a company didn’t need to register because its revenue was below AED 375,000 — completely ignoring that free zone businesses and license holders must register regardless of revenue thresholds. - No Follow-Up or Advisory
Free registration may get your TRN, but what about after? There’s no ongoing support, no compliance guidance, and no help when a mistake triggers a penalty from the FTA. - You Pay for It Anyway — With Penalties
If your registration is incorrect or late, the FTA may impose AED 10,000 in penalties, plus further fines for errors in returns or missed deadlines. These fines can quickly outweigh any initial “free” savings.
Real Case Example (Client We Helped)
One client came to Finzoryx after relying on a free service. Their consultant failed to identify that CT registration was required due to license type, not income level. As a result, they missed the deadline and were penalized. We stepped in, filed the return promptly, and helped them qualify for the penalty waiver scheme by the FTA — but not everyone is that lucky.
What Should You Do Instead?
- Work with a licensed, knowledgeable advisor
- Make sure your registration is based on your license type, structure, and operations — not just income
- Get guidance on filing, taxable income, and exemption criteria
- Stay alert to FTA deadlines and documentation requirements
Finzoryx: Proactive. Precise. Professional.
We don’t believe in shortcuts that cost you later. At Finzoryx, our Penalty Shield™ and 3C Model (Clarity, Compliance, Confidence) help ensure that you're not just registered — you're protected.
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