UAE Waives Late‑Registration Fines for Corporate Tax in 2025
In brief:
On 29 April 2025, the UAE Cabinet, Ministry of Finance (MoF), and Federal Tax Authority (FTA) announced a temporary penalty waiver for late corporate tax registration. Businesses that missed the deadline—normally slapped with AED 10,000 fines—can now avoid or recover them, provided they file their first corporate tax return (or annual declaration) within 7 months of their first tax period ending .
Why this matters
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Alleviate early strains
Launching corporate tax was a big shift for businesses, especially SMEs and free-zone entities. This relief prevents unnecessary financial pressure just as the system is taking hold . -
Promote compliance culture
By encouraging timely filings—even after a late registration—this move supports long‑term adherence to new tax standards .
Who qualifies & how to benefit
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Qualified taxpayers: All entities required to register under the Corporate Tax Law, including exempt persons filing annual declarations .
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Qualifying conditions:
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Submit the corporate tax return or annual declaration within 7 months after your first tax period ends (instead of the usual 9 months) .
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Applies whether your penalty is unpaid, paid, or you haven’t registered yet .
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Automatic & refundable: No special application—once you comply within 7 months, the FTA will automatically waive or refund penalties .
Examples of how it works
| Scenario | Action Taken | Outcome |
|---|---|---|
| 1 Late registration + unpaid penalty + return filed on time | File within 7 months | Penalty waived . |
| 2 Late registration + paid penalty + file on time | File within 7 months | Penalty refunded |
| 3 Never registered before penalty | Register, then file within 7 months | Penalty avoided |
Key dates & deadlines
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For a business whose first tax year ends 31 December 2024, the filing deadline is 31 July 2025.—save this date! .
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Filing after that means you’ll face full penalties—starting at AED 1,000 and rising AED 2,000 per month, up to AED 50,000 total .
What you need to do now
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Confirm your first tax period’s end date
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Calculate your 7‑month filing deadline
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Register via EmaraTax (if not already registered)
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Complete your corporate tax return or annual declaration—with audited financials, if required
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File before your 7‑month deadline to automatically benefit from the waiver
Final thoughts
This waiver is more than just cost relief—it signals the UAE’s commitment to a fair, practical tax environment that supports business adaptation. But it isn’t indefinite: the 7‑month window is your only path to penalty-free compliance.
If you’re unsure how to proceed, consult a UAE‑based tax advisor or accounting firm to ensure timely registration and accurate filings.
FAQs
Q: Do I need to apply for the waiver?
A: No. If you’re compliant within 7 months, the waiver or refund is automatic .
Q: What if I’ve already paid the fine?
A: You’ll receive a refund directly to your tax account once you file on time .
Q: Are exempt free‑zone entities covered?
A: Yes—exempt persons required to file annual declarations qualify .
Q: What if I miss the 7‑month deadline?
A: You’ll lose the waiver and face penalties—starting AED 1,000 and potentially rising to AED 50,000 .
By staying proactive and informed, businesses can sidestep unnecessary costs and ensure a smooth transition into the UAE’s corporate tax era. If you’d like help or want to share this update, feel free to reach out
