The UAE’s Federal Tax Authority (FTA) has launched a limited-time corporate tax fine waiver, urging businesses to register and file their tax returns promptly. The campaign offers a crucial grace period to help both taxable entities and exempt persons meet their obligations without facing penalties—but the window to comply is closing fast.
Seven-Month Window to Register and File
Under a Cabinet Decision, the FTA has introduced a waiver of late registration fines for the first corporate tax period, offering significant relief to businesses navigating the new corporate tax regime. To qualify, entities must:
- Register via the EmaraTax platform
- File their first tax return or declaration within seven months from the end of their first tax period
- Be either a taxable person or an exempt person required to register
The FTA clarified that this exemption only applies to the first tax period—regardless of whether the return deadline falls before or after the Cabinet Decision was issued. Once this period expires, standard penalties under the UAE Corporate Tax Law will apply to late filers.
FTA Expands Education and Compliance Outreach
This initiative forms part of the FTA’s broader strategy to foster voluntary tax compliance across the country in line with international best practices. As part of the outreach:
- In-person and virtual workshops are being held nationwide
- Businesses are receiving clarifications on taxable income, accounting standards, and registration procedures
At a recent workshop in Abu Dhabi, 940 business representatives attended to gain clarity on the law’s implications and the technical aspects of the waiver. Experts from the Authority provided detailed guidance on determining taxable income, understanding accounting obligations, and using the EmaraTax platform effectively. The session concluded with a robust Q&A to address sector-specific questions.
FTA Calls for Swift Action
The FTA is strongly encouraging all UAE businesses to review the Corporate Tax Law and relevant executive decisions and user guides published on its official website. With the grace period strictly tied to the first tax cycle, companies must act quickly to take advantage of the waiver and avoid unnecessary financial exposure.
“This exemption is a valuable opportunity for businesses to align with the Corporate Tax Law without immediate penalties. However, delays beyond the seven-month window will result in fines,” the FTA warned in its statement.
