The Federal Tax Authority (FTA) has reiterated the importance of timely Corporate Tax registration in the UAE, urging taxable businesses and certain exempt entities to act promptly to benefit from the AED 10,000 late registration penalty waiver.
The initiative, which has led to a noticeable rise in corporate tax compliance, applies to Taxable Persons and Exempt Persons required to register who missed the deadline for submitting their Corporate Tax registration applications.
Revised Deadline: 7 Months From Tax Period End
To qualify for the penalty waiver, registrants must now submit their Tax Return or annual declaration within seven months of the end of their first Tax Period or Financial Year, as opposed to the earlier nine-month deadline.
The waiver is only applicable to the first Tax Period and is valid irrespective of whether the due date for the return was before or after the announcement of the revised decision.
“This initiative is part of our wider strategy to support the business sector and encourage voluntary compliance,” said Khalid Ali Al Bustani, Director General of the FTA. “We aim to foster tax transparency, promote economic growth, and maintain high levels of efficiency in our tax system.”
Significant Uptick In Registrations
Since the launch of the waiver in April 2025, the number of Corporate Tax registrations has increased from 538,000 to 576,000—a rise of 38,000 registrations. Many of these businesses submitted their tax returns within the revised deadline to secure exemption from the AED10,000 penalty.
“The surge in registrations is a clear indicator of the initiative’s effectiveness and growing awareness of tax compliance across sectors in the UAE,” Al Bustani added.
FTA Calls For Continued Compliance Via EmaraTax
The FTA urged all remaining non-registered Taxable Persons to complete their registration through the EmaraTax platform immediately, followed by the timely submission of Tax Returns to remain compliant and avoid financial penalties.
Authorities have also emphasized that ongoing awareness campaigns, workshops, and industry consultations are being conducted to address taxpayer concerns and streamline the registration process.
“Our priority is to ensure all businesses are well-informed and supported in fulfilling their tax obligations,” Al Bustani stated.
Supporting a Transparent and Evolving Tax Landscape
The Corporate Tax registration UAE campaign forms a key pillar of the government’s broader effort to modernise tax administration and align with global best practices.
As the UAE continues to strengthen its legislative and regulatory environment, the FTA reaffirmed its commitment to maintaining dialogue with the business community, ensuring sustainable growth, and enhancing the country’s reputation as a transparent and investor-friendly economy.
–Input WAM
