FTA Expects Corporate Tax Late Registration Penalty Waiver Beneficiaries to Reach 91,000

Government

FTA Expects Corporate Tax Late Registration Penalty Waiver Beneficiaries to Reach 91,000

Federal Tax Authority (FTA) announced that more than 68,600 Taxable Persons have already benefited from the UAE’s Corporate Tax Late Registration Penalty Waiver initiative during 2025 and the early months of 2026.

The Authority expects the total number of beneficiaries to exceed 91,000 as more eligible businesses and exempt entities complete their registration and filing requirements under the initiative.

Initiative Supports Voluntary Tax Compliance

The waiver initiative was introduced through a UAE Cabinet Decision that came into effect in April 2025. It applies to administrative penalties imposed on Taxable Persons and certain categories of Exempt Persons who failed to submit Corporate Tax registration applications within the legally required timeframe starting from 1 June 2023.

According to the FTA, eligible entities can benefit from the waiver by:

Completing their Corporate Tax registration
Submitting their Tax Return or Annual Declaration
Filing within seven months from the end of their first Tax Period or Financial Year

The Authority clarified that the initiative applies only to the first Tax Period of the Taxable Person or eligible Exempt Person.

FTA Urges Businesses to Register Promptly

Abdulaziz Al Mulla urged businesses that have not yet registered for Corporate Tax to take advantage of the initiative.

“The FTA is intensifying its efforts to support and assist Taxable Persons, providing continuous facilitations that enable them to fulfil their tax obligations,” he said.

Al Mulla added that the initiative aligns with the UAE leadership’s vision of implementing a transparent and flexible tax environment that encourages voluntary compliance while supporting economic growth and business competitiveness.

More Than 22,000 Additional Businesses Eligible

The FTA revealed that over 22,000 Taxable Persons are expected to qualify for the initiative during the coming period.

The Authority confirmed that the waiver applies to:

Businesses already registered and fined for late registration
Businesses that registered but have not yet submitted Tax Returns
Businesses that have not yet registered but complete registration and filing within the required timeframe

In cases where penalties have already been paid, the amount will automatically be credited to the taxpayer’s account on the EmaraTax platform. Taxpayers may then use the balance to settle future tax liabilities or request a refund.

Automatic Waiver Process

The FTA explained that eligible businesses do not need to submit separate reconsideration or waiver requests.

If the required conditions are met, the late registration penalty will be automatically:

Cancelled, if unpaid
Refunded as a tax credit, if already paid

The Authority also encouraged businesses to review the detailed public clarification available on its official website, which explains eligibility conditions, refund procedures, and practical examples for different cases.

Focus on Business-Friendly Tax Environment

The latest initiative forms part of the UAE’s broader strategy to strengthen its business environment through simplified compliance procedures, proactive taxpayer support, and digital tax services.

The FTA said it will continue enhancing awareness campaigns and guidance related to Corporate Tax legislation and registration requirements to ensure smooth compliance for businesses operating across the UAE.