Important Update for Businesses: Avoid AED 10,000 Penalty—Act Now!
The UAE Federal Tax Authority (FTA) has announced a special one-time initiative to support businesses by waiving the AED 10,000 penalty for late corporate tax registration and filings. This is a crucial opportunity for businesses to regularize their tax obligations and avoid hefty financial penalties, ensuring peace of mind and compliance.
What Is the Penalty Waiver Initiative?
Businesses that have:
- Not yet registered for corporate tax, or
- Have already incurred penalties of AED 10,000 due to late registration,
can now benefit from this penalty waiver, provided they meet the conditions set by the FTA.
This initiative is designed to ease the compliance process and support businesses in meeting their obligations without the burden of past penalties.
Who Can Benefit?
The following businesses can take advantage of this waiver:
- Businesses that are required to register for Corporate Tax but have not yet applied.
- Businesses that have already received the AED 10,000 penalty due to late tax registration.
Waiver Conditions & Key Deadlines to Know
To qualify for the penalty waiver, businesses must act promptly by adhering to these conditions:
For Taxable Businesses:
- Submit your Corporate Tax Return within 7 months from the end of your first tax period.
➡ Example:
If your first tax period ends 31 December 2024, you must file your tax return by 31 July 2025.
For Tax-Exempt Businesses:
- Submit the annual declaration within 7 months from the end of your financial year. Example:
If your financial year ends 31 March 2025, your declaration must be submitted by 31 October 2025.
Note: Even if your business is exempt from corporate tax, annual declarations are still mandatory.
Why Should You Act Now?
- The standard penalty for late corporate tax registration is AED 10,000—this waiver gives you a rare chance to clear it.
- This is a limited-time, one-time opportunity.
- There is no guarantee of similar waivers in the future.
- The earlier you act, the better your chances of benefiting from the waiver and avoiding further penalties.
- Staying compliant now ensures your business remains in good standing with the authorities.
How Can AccountAbility Help?
At AccountAbility, we are committed to making tax compliance stress-free for businesses.
Our experts can support you by:
- Reviewing your current tax status.
- Assisting with corporate tax registration and filings.
- Ensuring accurate and timely submissions.
- Helping you apply for the penalty waiver.
Next Steps: Secure Your Compliance—Don’t Miss This Opportunity!
If you are unsure about your tax status, late registration, pending filings, or existing penalties, contact us immediately. We will help you check your eligibility and get everything sorted before the penalty waiver deadline.
info@accountability.ae
+971 58 955 8348
Let’s make sure you avoid penalties and stay compliant—while this window is open!
