There's a new government initiative that's actually exciting news. Unlike typical bureaucratic announcements, this one could save you money β you might be able to avoid hefty fines for missing registration deadlines.
What happened?
The UAE's Ministry of Finance and the Federal Tax Authority (FTA) has announced a plan to waive late fees for businesses that missed the Corporate Tax registration deadline. Companies registering for Corporate Tax in the first year can avoid the AED 10,000 fine if they file their first returns within 7 months. Those who meet the criteria can also receive refunds for any fines already paid.
πΌ This program is great for both UAE taxable persons (individuals) and legal entities.
π° To avoid the AED 10,000 penalty for late registration, the company needs to file its first tax return (or annual return for exempt individuals) within 7 months of the end of its first tax period.
π For most companies whose fiscal year ends on December 31st, 2025, the deadline to file a return (and obtain the right to avoid penalties) is July 31st, 2026.
π If you've already paid the AED 10,000 penalty, and you've met the requirement to file your return within 7 months, you can apply for a refund on the EmaraTax website.
How to verify the criteria for exemption from Corporate Tax in the UAE
Check your eligibility: You will see if your business is eligible for the waiver and how much time you have to comply
How do I apply for the waiver?
It's simple: you'll need to organize your accounting records and paperwork before applying. While organizing financial documents can be challenging, especially with numerous records to manage, we're here to help. Here's our straightforward solution: let us handle your documents. We'll organize everything according to regulations and submit them directly to the FTA. You avoid the fines, and everyone wins!
Why is this beneficial for you?
We're offering this special rate for early birds β before the inevitable rush of last-minute applicants. Now is the perfect time to resolve your FTA compliance while making a smart investment in your business's future. Once your paperwork is properly organized, you'll have a smooth process for all future filings and reports. When you're ready to proceed, click the link below. We'll schedule a consultation and create your action plan.