Ministry of Finance and Federal Tax Authority Introduce Initiative to Waive Penalties for Late Registration Under Corporate Tax Law
The Ministry of Finance (MoF) and the Federal Tax Authority (FTA) have announced a new initiative under a Cabinet Decision to waive administrative penalties for corporate taxpayers and specific exempt individuals who missed the deadline for submitting their tax registration applications with the FTA.
To qualify for this exemption, eligible entities must submit their tax returns or annual statements within seven months of the end of their first tax period, as required by the Corporate Tax Law.
This decision reflects the MoF and FTA’s proactive efforts to improve tax compliance and encourages taxpayers to submit their filings before the deadline, helping foster early adherence to legal obligations. The FTA also confirmed that it will refund administrative fines collected from those meeting the criteria.
The initiative is a part of the UAE government’s ongoing commitment to enhance the tax compliance environment, simplify processes, and alleviate the financial burden on businesses. By offering these exemptions, the government aims to facilitate smoother tax compliance for businesses while ensuring that they meet their obligations on time.
This move is also expected to strengthen the UAE’s corporate tax system in its first year of implementation, supporting national businesses and promoting voluntary compliance. It underscores the UAE’s commitment to improving its global competitiveness while reducing the administrative and financial challenges businesses face with tax registration.
