UAE Corporate Tax Late Registration Penalty Waiver 2025

Avoid AED 10,000 fines! Learn how to apply for the UAE corporate tax late registration penalty waiver 2025 with Xact’s expert tax guidance. If your business in UAE has missed the deadline for corporate tax registration due to any reason and you have received a late corporate tax registration penalty of AED 10,000 then don’t panic!

You don’t need to worry—there is an excellent news! Businesses in the UAE can register for corporate tax safely, even if they’re late, as the FTA has removed the hefty penalties associated with being late. As of April 29, 2025, the Federal Tax Authority (FTA) has introduced a corporate tax late registration penalty waiver 2025 initiative that allows businesses to register late without facing the AED 10,000 fine previously imposed. This move is a major relief for all the businesses who received a late corporate tax registration fines.

At Xact Auditing, we specialize in assisting businesses in UAE to qualify for this Corporate Tax Late Registration Penalty Waiver. In this guide, we’ll discuss how the waiver works—and how our corporate tax experts can support you through the process.

What is the eligibility for the Corporate Tax Late Registration Fine Waiver?

In order to get an advantage from the FTA initiative to waive off late corporate tax registration fines, companies in UAE must meet specific legal conditions based on their current corporate tax registration status:

1. Already Registered for Corporate tax but Unpaid Penalty
   If the taxpayer (or an exempt person required to register) is already registered but has been issued a late corporate tax registration penalty and has not paid it, they must file their corporate tax return (or annual return) within 7 months of the end of their first tax period or financial year to qualify for penalty waiver.

   (e.g. If a tax period is ending on December 31, 2024 as per the corporate tax certificate then the businesses must submit corporate tax return filing before July 31, 2025 which is a 7th month in order to be eligible for the penalty waiver. However, the actual deadline is September 30, 2025 which is  9 months)

   File by July 31, 2025 → Eligible for AED 10,000 penalty waiver
   File after July 31 but before Sept 30 → Return is still accepted, but waiver no longer applies

2. Already Registered for Corporate tax and Penalty Paid
   If the taxpayer has already paid the late corporate tax registration penalty of AED 10,000, they can still qualify for waive off by filing the return within 7 months of the end of their first tax period. In this case, the penalty amount will be refunded to the taxpayer’s account.

3. Not Yet Registered for Corporate tax
   If a taxpayer (or exempt person) has not yet submitted a corporate tax registration application, they must do so immediately, and also file the tax return within 7 months of the end of the first tax period or financial year to become eligible for the penalty waiver.

Xact Auditing ensures your compliance with these conditions, maximizing your chances of penalty exemption. We are offering timely and best corporate tax return filing services in UAE.

Why FTA introduced the Corporate Tax Penalty Waiver?

Many businesses in UAE faced confusion around eligibility, registration processes, and compliance requirements. Some were uncertain whether they needed to register at all, while others struggled with how and what to report.

To ease this transition and encourage voluntary compliance, the Federal Tax Authority (FTA) launched the Corporate Tax Late Registration Penalty Waiver  to support businesses during this period of adjustment and promote a culture of accountability without immediate punitive measures.

How Xact Can Help You Obtain the Penalty Waiver?

Xact Auditing’s process ensures that your business qualify for the FTA Waive Off Late Corporate Tax Registration Fines initiative with minimal effort:

• Free Consultation: We assess your tax status and registration needs in under 1 hour, identifying your tax period and filing deadlines.
• Document Preparation: We compile and verify documents like financial statements and trade licenses, ensuring 100% accuracy for FTA submission.
• Registration and Filing: We register your business on the EmaraTax platform and file your tax return within the 7-month window, with 80% of filings completed in 3 to 5 days.
• Penalty Refund Coordination: For businesses that paid penalties, we liaise with the FTA to secure refunds, credited to your business account.

Act Now: Don’t Miss the Penalty Waiver Opportunity

Don’t miss the chance to benefit from the FTA Waive Off Late Corporate Tax Registration Fines initiative. Xact Auditing, with 24/7 availability and a free initial consultation, is your trusted partner for seamless tax compliance. Whether you need to register for corporate tax, file corporate tax return, or secure a late corporate tax registration penalty refund, Contact us to get started.

FAQs

Here are 5 key FAQs about the FTA Waive Off Late Corporate Tax Registration Fines:

Q1. Who qualifies for the late corporate tax registration penalty waiver?

Taxable businesses and exempt entities filing within 7 months of their first tax period.

Q2. Can I get a refund if I paid the late corporate tax registration penalty ?

Yes, if you file within the 7-month window, FTA will refund the paid penalty amount.

Q3. What’s the Corporate tax filing deadline to be eligible for waive off?

For a tax period ending December 31, 2024, file by July 31, 2025.

Q4. Does the waiver apply to tax evasion cases?

No, it’s limited to non-evasion cases.

Q5. How do I apply for penalty exemption?

Register and file corporate tax return on EmaraTax with Xact Auditing’s support for 100% compliance.

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