UAE Corporate Tax Penalty Waiver. A Lifeline for Businesses. Everything You Need to Know
By Kitaab on April 30, 2025
In a welcome move to support businesses and promote early tax compliance, the UAE Ministry of Finance and the Federal Tax Authority (FTA) have introduced a corporate tax penalty waiver under a new Cabinet Decision.
If your business missed the initial registration deadline, this corporate tax penalty waiver offers a second chance to avoid penalties, but you’ll need to act fast.
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The waiver allows businesses and exempt entities that failed to register for Corporate Tax within the required timeline. Under the new decision, eligible businesses can avoid penalties by filing their Corporate Tax return within 7 months from the end of their first tax period. This is a crucial opportunity to bring your compliance up to date without facing administrative fines.
Key Benefits for UAE Businesses:
To take advantage of the waiver, eligible businesses must:
1. Relief from Administrative Penalties-
Eligible businesses that failed to register on time may now be exempt from administrative penalties, provided they:
Submit their Corporate Tax return or declaration (as applicable)
Within 7 months from the end of their first tax period
In full compliance with the Corporate Tax Law
2. Refund of Penalties Already Paid-
If your business has already paid a penalty for late registration, you are entitled to apply for a refund through the FTA portal, provided you meet the new filing conditions outlined in the Cabinet Decision. Be sure to confirm your eligibility before submitting the refund request.
This initiative is a great opportunity for small and medium-sized enterprises (SMEs) to regularize their tax position without incurring additional financial burden and to stay aligned with the UAE’s Corporate Tax compliance framework.
Don’t Miss Out!
This corporate tax penalty waiver is a limited-time opportunity to fix any gaps in your Corporate Tax compliance, penalty-free.