FTA Waives Corporate Tax Late Registration Penalty for UAE Firms - IBG Consulting Dubai
 

FTA Waives Corporate Tax Late Registration Penalty for UAE Firms

June 20, 2025by Muhammad Muneeb

The Federal Tax Authority (FTA) is once again urging UAE businesses to register for Corporate Tax as soon as possible to benefit from the administrative penalty waiver—available only for a limited time and under specific conditions.

Ras Al Khaimah & Abu Dhabi Host Key Corporate Tax Workshops

A recent workshop in Abu Dhabi attracted nearly 940 attendees from the business community, while the latest event held in Ras Al Khaimah , brought in around 440 participants. Together with previous events in Dubai, the FTA’s 2025 awareness campaign has now engaged over 2,300 stakeholders across the UAE.

These workshops are part of a national campaign to educate companies on the Corporate Tax framework, registration steps, and how to comply with the law.

Who Can Qualify for the Penalty Relief?

The penalty waiver applies to businesses and certain exempt entities that have not yet registered for Corporate Tax. However, this one-time exemption is only available for the first tax period and under specific conditions.

To qualify, a business must:

  • Submit their Corporate Tax registration application, and
  • File their first tax return or declaration within 7 months from the end of their first tax period

This condition remains valid regardless of whether the due date falls before or after the launch of the waiver policy.

Workshop Focus Areas

The FTA’s workshops aim to simplify tax compliance and boost awareness across all sectors. Core topics covered in both Abu Dhabi and Ras Al Khaimah included:

  • How to calculate taxable income
  • Understanding tax liabilities and accounting methods
  • Filing returns using EmaraTax, the UAE’s digital tax system
  • Applying accrual accounting principles
  • Preparing financial statements under IFRS standards
  • Identifying taxable persons, tax rates, and reporting periods
  • Defining assets, liabilities, and equity under corporate tax law

Each session concluded with a live Q&A, giving businesses a chance to directly ask questions to FTA representatives and tax experts.

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Nationwide Outreach and Support

This ongoing campaign—launched in 2023—spans across all emirates through both in-person sessions and virtual webinars. The goal is to support every type of business, especially SMEs, in understanding and meeting their Corporate Tax obligations.

It also aligns with the UAE’s broader objectives to:

  • Encourage voluntary tax compliance
  • Simplify the transition into the Corporate Tax regime
  • Align with global tax standards

By breaking down complex tax topics into practical steps, the FTA is helping companies stay informed, prepared, and penalty-free.

Final Reminder for Businesses

The FTA continues to strongly urge all corporate entities—especially those not yet registered—to take action immediately.

Key Recommendations:

  • Register early to qualify for the penalty waiver
  • Review the Corporate Tax Law, Executive Regulations, and official guides
  • Use the EmaraTax platform for seamless digital registration

Failing to register and file within the required 7-month period may lead to administrative penalties. Businesses are advised to stay proactive and fully compliant.

For the latest updates, tools, and guides, visit the
Federal Tax Authority Official Portal.

Have any question? Fill the form & get free consultation!

Muhammad Muneeb