Website Last updated:

May 15, 2026

This clarification outlines an FTA initiative waiving the AED 10,000 late Corporate Tax registration penalty for a person's first tax period. For a Taxable Person, the primary condition is submitting their first tax return within seven months from their tax period's end, instead of the standard nine. This waiver also applies to Exempt Persons who submit their first annual declaration within seven months. If the penalty has been previously paid, the amount will be credited to the person's EmaraTax account. This initiative does not alter the nine-month deadline for the actual payment of Corporate Tax.

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Corporate Tax Public Clarification

Waiver of Administrative Penalty for failing to submit a Corporate Tax registration application within a specified deadline

Issue

Corporate Tax in the UAE is regulated by Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Business and its amendments ("Corporate Tax Law"), and its implementing decisions.

Cabinet Decision No. 75 of 2023 on the Administrative Penalties for Violations Related to the Application of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, and its amendments ("Cabinet Decision No. 75 of 2023") lists an Administrative Penalty of AED 10,000 for the failure of the Taxable Person to submit a Tax Registration application within the timeframe specified by the Federal Tax Authority ("FTA") in accordance with the Corporate Tax Law.

The Cabinet approved that the FTA may waive and refund (where paid) the late registration administrative penalty applicable to Taxable Persons and certain categories of Exempt Persons, subject to meeting specific conditions.

The Cabinet approval is effective from 14 April 2025, but is applicable to any Corporate Tax late registration penalty, from 1 June 2023, subject to meeting the necessary requirements.

This Public Clarification intends to explain the criteria by which Taxable Persons and certain categories of Exempt Persons can have this administrative penalty waived and, if applicable, refunded.

Summary

Persons required to register for Corporate Tax, including juridical persons intending to apply for the exemption referred to under Article 4(1)(e) to (i) of the Corporate Tax Law, may be subject to an Administrative Penalty of AED 10,000 for failure to submit a Tax Registration application for Corporate Tax to the FTA within the timeline set by the FTA ("Late Registration Penalty").

The FTA has launched an initiative to waive this Late Registration Penalty provided that a Taxable Person submits its Tax Return within seven months from the end of its first Tax Period, instead of nine months.

Persons that were subject to a Late Registration Penalty and subsequently became exempt from Corporate Tax following an application approved by the FTA, may also benefit from this waiver, if they submit their annual declaration within seven months from the end of their first Financial Year, instead of nine months.