The Federal Tax Authority (FTA) has issued Public Clarification CTP006, dated 3 May 2025, providing updates on penalty waivers for late corporate tax registration and filing. It confirms who can benefit, how the waiver applies, and the key conditions to qualify.
What the Clarification Covers
The waiver is automatic when conditions are met. If the penalty has not been paid, it will be removed in your EmaraTax account. If it has been paid, the amount will be credited to your corporate tax account for future use or refund.
This clarification applies to taxable persons, exempt persons, and tax groups, and does not change the nine month payment due date.
Key Condition
File your corporate tax return or declaration within seven months of the end of the first tax period or financial year (for exempt persons).
Who Can Benefit
- Taxable persons who missed registration but file their first return within seven months.
- Exempt persons such as qualifying funds and public benefit entities that submit their declaration within seven months.
- Tax groups where each member files within the seven month period.
What Is Not Covered
Returns filed after seven months or penalties already resolved through reconsideration will not qualify for the waiver.
What Businesses Should Do
- Check registration and penalty status in EmaraTax.
- File returns within the seven month deadline.
- Monitor for automatic adjustment or refund credit.
Conclusion
The FTA’s clarification promotes timely filing and reduces administrative effort. For more details, download MCA Gulf’s full summary guide on the UAE Corporate Tax Penalty Waiver.
Please feel free to contact us for any further clarifications.
Contact Details
Email: mcatax@mcagulf.com
Telephone (Dubai UAE): +971 4 3319501
Mobile/WhatsApp: +971 50 5528079
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