The Federal Tax Authority (FTA) is reminding businesses in the UAE that they can still benefit from a late registration penalty waiver—but only for a limited time and under specific conditions.
A recent event held in Abu Dhabi drew nearly 940 attendees from the business community. The workshop focused on guiding companies through the UAE’s corporate tax registration process and ensuring they understand how to comply with the current Corporate Tax Law.
Who Can Benefit from the Penalty Exemption?
Businesses and certain exempt entities that have not yet registered for corporate tax are eligible for this one-time waiver—but it only applies to the first tax period.
To qualify:
- The company must submit their registration application.
- The first tax return or annual declaration must be filed within 7 months after the end of the first tax period.
This exemption is valid even if the deadline for filing falls before or after the start of the waiver policy.
Workshop Focus Areas
The FTA’s ongoing awareness campaign aims to help businesses clearly understand their tax obligations. Topics covered in the workshop included:
- How to calculate taxable income
- Understanding tax liabilities and accounting methods
- Filing returns using EmaraTax, the UAE’s digital tax platform
- Accrual accounting principles, recognizing income and expenses
- Preparing financial statements under applicable accounting standards
- Identifying taxable persons, applicable tax rates, and reporting periods
- IFRS-based financial definitions for assets, liabilities, and equity
The session concluded with a live Q&A, allowing participants to clarify their questions directly with tax experts.
Nationwide Outreach and Support
The Abu Dhabi event is part of a broader campaign launched in 2023, running across various Emirates. The FTA is hosting in-person sessions and virtual webinars to reach different business sectors, ensuring that each group receives tailored support.
The campaign is also part of a larger strategy to:
- Boost voluntary tax compliance
- Make the transition to corporate tax smooth
- Align with international tax standards
These workshops are designed to make the UAE’s tax system easier to understand and follow—especially for small and medium businesses navigating tax registration for the first time.
Final Reminder for Businesses
The FTA strongly advises all corporate entities—especially those not yet registered—to act quickly to avoid potential fines.
Key recommendations:
- Register early to take advantage of the penalty waiver
- Read the Corporate Tax Law, Executive Regulations, and official guides
- Use EmaraTax for easy online registration and compliance
Failing to register on time may result in penalties, so businesses are urged to stay informed and compliant.
For further updates, tools, and official publications, visit the Federal Tax Authority portal.
