UAE Corporate Tax Penalty Waiver: A Second Chance for Businesses
Missed the deadline to register for Corporate Tax in the UAE?
There’s good news. The UAE Ministry of Finance and the Federal Tax Authority (FTA) have announced a new initiative to waive the AED 10,000 administrative penalty for businesses that failed to register for Corporate Tax on time.
This article explains who can benefit, what steps you need to take, and how Audiix can help ensure you don’t miss this critical opportunity.
What Is the Penalty Waiver Initiative?
The FTA has confirmed that a Cabinet Decision will soon be issued to activate a special initiative aimed at supporting early and voluntary compliance with the Corporate Tax Law.
Under this initiative, businesses and exempt persons that missed the registration deadline can avoid penalties—if they meet specific conditions.
Who Can Benefit?
This penalty waiver applies to:
1- Businesses and exempt persons that were required to register for Corporate Tax but missed the registration deadline.
2- Entities that canceled their business licenses in 2024 without registering for Corporate Tax.
These businesses may still benefit the waiver if they now register and file their return, and apply for deregistration in accordance with the law.
Key Requirement to Qualify
To benefit from the penalty waiver, the business must:
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Submit the Corporate Tax return or declaration within 7 months from the end of its first tax period.
➤ The tax period refers to the financial year stated in the company’s Articles of Association. For most businesses following a January–December year-end, the filing deadline will be 31 July 2025. -
Ensure full compliance with all provisions of the UAE Corporate Tax Law, including accurate registration and timely filings.
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These are the conditions announced so far by the Ministry of Finance and the Federal Tax Authority. The upcoming Cabinet Decision will provide formal confirmation of the final conditions and procedures.
Already Paid the Penalty?
You May Be Eligible for a Refund
The FTA has clarified that businesses which have already paid the AED 10,000 penalty may be entitled to a refund, provided they meet the conditions of the waiver.
To claim the refund:
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The taxpayer must submit a refund application to the FTA.
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The refund is subject to FTA approval and will be offset against any outstanding tax liabilities.
Why This Matters
This initiative is part of the UAE’s commitment to creating a transparent, competitive, and business-friendly tax environment. It also gives companies a vital window to correct oversights and transition into full compliance without incurring financial penalties.
What Should Businesses Do Now?
To benefit from this opportunity, businesses must act quickly and responsibly. At Audiix, we recommend the following steps:
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Check the registration status of all active and canceled trade licenses.
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Submit any required amendments before applying for Corporate Tax registration.
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Prepare financial statements, determine taxable income, and calculate your Corporate Tax liability.
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Register for Corporate Tax and file your tax return within 7-month after the end of first tax period
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If your business has been canceled, register and file your return, then apply for deregistration.
How Audiix Can Help
As an FTA-authorized tax agency, Audiix supports UAE businesses with:
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✅ Corporate Tax registration and amendment filing
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✅ Tax return preparation and submission
- ✅ Ongoing advisory and compliance support
Stay Ahead, Stay Compliant
