FTA Urges Businesses to Register for Corporate Tax to Avoid Penalties
The Federal Tax Authority (FTA) has reported a rise in businesses benefiting from its Corporate Tax Late Registration Penalty Waiver initiative. Taxable Persons and certain Exempt Persons who missed the registration deadline can avoid the AED 10,000 fine by submitting their Tax Return or annual declaration within seven months (instead of nine) from the end of their first tax period.
Key Details of the Waiver
- Applies only to the first tax period, regardless of whether deadlines passed before the new decision.
- Over 576,000 businesses have now registered—an increase of 38,000 since the waiver was introduced in April 2025.
- Eligible entities must file returns via the EmaraTax platform to qualify.
FTA’s Call for Compliance
Khalid Ali Al Bustani, FTA Director General, urged non-registered businesses to act quickly to benefit from the waiver. He emphasized that the initiative supports economic growth, tax transparency, and voluntary compliance while reducing penalties.
Success of the Initiative
Al Bustani noted that the rising registration numbers reflect growing tax awareness in the UAE’s business sector. The FTA continues to engage with taxpayers through awareness campaigns and is working with relevant authorities to ensure maximum participation.
Businesses are encouraged to register promptly to avoid penalties and leverage the waiver before deadlines expire.
