Corporate Tax Penalty Waiver in the UAE: What You Need to Know

With the rollout of Corporate Tax in the UAE, the Federal Tax Authority (FTA) and the Ministry of Finance have introduced a timely relief initiative designed to support businesses transitioning to the new regime. Here's everything you need to know:

What Is the Waiver?

If you missed the original Corporate Tax registration deadline, a AED 10,000 late-registration penalty may have already been imposed.

The good news? This penalty will be waived automatically if you submit your first Corporate Tax Return or Annual Declaration within 7 months of your first tax period ending.

Even if you've already paid the AED 10,000 fine, the amount will be refunded to your tax account upon timely submission.

Key Deadlines by Fiscal Year-End

If your financial year ends on December 31, 2024, your deadline to benefit from the waiver is July 31, 2025 — within 7 months of your tax period closing.

Who Qualifies?

• All registered entities subject to Corporate Tax, including LLCs, mainland, and free zone companies.
• Entities still unregistered but legally required to register.
• Companies exempt from Corporate Tax (e.g. qualifying funds) that are still required to file initial declarations.

Why This Matters

• The AED 10,000 penalty is significant, especially for SMEs and startups.
• Meeting the deadline not only saves money — it keeps your FTA account in good standing.
• This one-time waiver helps businesses avoid harsh penalties during the transition into the new tax environment.

What You Should Do Now

1. Identify your first Corporate Tax period end date.
2. Register (if not yet done) and file your first CT return or declaration via EmaraTax within 7 months.
3. Ensure your financials are IFRS-compliant and gather supporting documentation.
4. Monitor for the automatic penalty waiver or refund in your FTA tax account.

How Finzoryx Can Help

• We can confirm your Corporate Tax deadline and guide you through the entire submission process.
• We’ll handle IFRS financial preparation, EmaraTax filings, and ensure eligibility for the waiver.
• If penalties have already been imposed or paid, Finzoryx will coordinate the refund or waiver process on your behalf.

Final Thoughts

This Corporate Tax Penalty Waiver is a rare early compliance initiative from the FTA—one that businesses should take advantage of without delay. Filing on time protects you now and sets a foundation for smooth, compliant tax reporting in the years ahead.

Need assistance filing on time or claiming your refund?

Call Finzoryx: +971-503978121

Email: connect@finzoryx.com

Website: www.finzoryx.com