The Federal Tax Authority is pleased to announce the launch of an initiative to waive administrative penalties for the late submission of Corporate Tax registration applications, provided certain conditions are met. This initiative is part of the FTA’s ongoing efforts to support the UAE business community by facilitating compliance and enabling taxpayers to fulfill their obligations more effectively.

Conditions for Penalty Waiver

To qualify for the waiver of the penalty for late Corporate Tax registration, the taxable person must submit their Corporate Tax return within seven (7) months from the end of their first tax period.

For persons exempt from Corporate Tax, the requirement is to submit the annual declaration within the same seven-month timeframe from the end of their first financial year.

Who Can Benefit

This initiative applies to all entities required to register for Corporate Tax, whether they have already incurred a penalty for late registration or have not yet submitted their registration application.

Scenarios Where the Waiver Applies

1. Scenario 1:
   The taxpayer completed the registration and was issued a penalty for late submission, but has not yet paid the penalty. The tax return is submitted within seven months from the end of the first tax period.
   → Penalty will be waived.
2. Scenario 2:
   The taxpayer registered and received a penalty for late submission, which remains unpaid, and has not yet submitted the tax return.
   → Penalty will be waived if the return or annual declaration is submitted within seven months from the end of the first tax period.
3. Scenario 3:
   The taxpayer registered and has already paid the late registration penalty, but has not yet filed the tax return.
   → If the tax return or annual declaration is submitted within the seven-month deadline, the penalty amount will be refunded to the taxpayer’s tax account.
4. Scenario 4:
   The taxpayer registered, paid the penalty, and submitted the tax return within the seven-month period.
   → The paid penalty amount will be refunded to the taxpayer’s tax account.
5. Scenario 5:
   The taxpayer has not yet submitted a Corporate Tax registration application.           → If the registration is completed and the tax return or annual declaration is submitted within seven months from the end of the first tax period. The penalty will be waived if it is imposed.

How to Apply

To benefit from this initiative, taxpayers should complete their CT registration and submit the required tax return or annual declaration via the EmaraTax platform within the specified deadlines.