Announced by Federal Tax Authority (FTA) on May 3, 2025
FTA has introduced waiver of the AED 10,000 late registration penalty under the Corporate Tax regime, provided certain conditions are met.
This waiver is part of FTA’s commitment to support businesses during the Corporate Tax transition phase, promote voluntary compliance, and reduce penalties where possible.
Eligibility
Available to businesses and individuals who:
- Missed the CT registration deadline, and
- Registered late, but
- Submit the first Corporate Tax Return or annual declaration within 7 months from the end of their first tax period.
Example
Financial Year End: December 31, 2024
Tax Period Ends: December 31, 2024
Submission Deadline: July 31, 2025
Penalty waived/refunded if filed by the above date.
Key Points
Refund: If the penalty was already paid:
- It will be automatically refunded to tax account upon timely return/ declaration submission
- No additional application is required.
Penalty Not Waived If
- You miss the 7-month filing deadline
- You incur other violations (e.g., late return filing, incorrect data)
How to Avail the Waiver
- Register for corporate tax if not already done
- Determine your first tax period
- File CT return or declaration within 7 months of the tax period end
- Penalty will be auto-waived or refunded
Please feel free to contact us for any further clarification/impact assessment.
Contact Details
Email: mcatax@mcagulf.com
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