UAE Offers Relief: No Penalty for Late Corporate Tax Registration if You File on Time!

In a big relief for companies in the UAE, the Ministry of Finance and the Federal Tax Authority (FTA) have announced that penalties for late corporate tax registration can now be waived—but there’s a catch (a good one!).

If your business missed the deadline to register for corporate tax, don’t panic—you now have a chance to avoid penalties as long as you file your first tax return on time.

What’s This All About?

With corporate tax being new in the UAE, many businesses have been trying to figure things out. This new waiver gives companies a second chance—no penalties for late registration, as long as they’re serious about staying compliant moving forward.

How to Qualify for the Penalty Waiver

To benefit from this relief:

• You must file your first Corporate Tax Return (or Annual Statement) within seven months from the end of your first tax period.

Example: If your first tax period ends on 31st December 2024, you must file by 31st July 2025.

What Are the Benefits?

• No Penalty for Late Registration
  Avoid hefty fines as long as you file your first return on time.
• Chance of Refund
  If you already paid a late registration penalty, you may get a refund, provided you meet the new conditions.
• Less Stress
  Makes it easier for businesses to transition smoothly into the new tax system.
• Encourages Timely Filing
  Helps businesses focus on what matters most—filing returns on time.

Why This Matters

At ScaleX Business, we see this as a practical and positive move by the UAE authorities. It shows they’re serious about supporting businesses during this major shift, rather than just penalising them. It’s also a great opportunity for companies that were unsure or delayed to get back on track—without financial setbacks.

Final Tip: Don’t Miss the Deadline!

Make sure you:

• Know your first tax period,
• File your Corporate Tax Return within 7 months of its end.

If you do this, you can still benefit from the waiver—even if you registered late.

Need help figuring out your tax period or filing on time?
Our team at ScaleX Business is here to support you.

Let us make compliance easier, together.