ABU DHABI, 14th May, 2026 (WAM) — The Federal Tax Authority (FTA) announced that the total number of beneficiaries from the Corporate Tax Late Registration Penalty Waiver initiative exceeded 68,600 Taxable Persons for Corporate Tax purposes during 2025 and the elapsed period of 2026.
The FTA expected the total number to increase to more than 91,000 beneficiaries from the esteemed Cabinet Decision regarding the initiative to waive administrative penalties incurred by Taxable Persons for Corporate Tax purposes and certain categories of Exempt Persons required to register with the FTA, because of late submission of registration applications within the legally specified timeframe. The decision came into effect in April 2025 and applies to any late Corporate Tax registration penalties applicable from 1 June 2023, subject to meeting the specified conditions.
The FTA indicated that, under the initiative, exemption from the penalty requires the Taxable Person, or the Exempt Person required to register, to submit their Tax Return, or annual declaration, within a period not exceeding seven months from the end date of their first Tax Period, or first Financial Year, instead of nine months.
The FTA confirmed that the Corporate Tax Late Registration Penalty Waiver initiative applies only to the first Tax Period of the Taxable Person, or the Exempt Person required to register.
Abdulaziz Al Mulla, Director General of the FTA, urged non registered Corporate Taxable Persons to benefit from the initiative, which is in line with the directives of the UAE’s wise leadership to implement the tax system in accordance with the highest standards of transparency, while maintaining economic momentum through a flexible tax legislative environment that keeps pace with developments and encourages voluntary compliance with tax laws and procedures.
He said: “The FTA is intensifying its efforts to support and assist Taxable Persons, providing continuous facilitations that enable them to fulfil their tax obligations, thereby enhancing the UAE’s competitiveness in the field of doing business. The Authority is also committed to enhancing proactive and continuous awareness of all applicable and newly introduced tax legislation, decisions, and procedures, as well as procedural facilitations to ensure smooth and seamless tax compliance.”
Al Mulla added: “Indicators from the FTA’s database show that more than 22,000 Taxable Persons are eligible to benefit from the initiative during the coming period. In accordance with the esteemed Cabinet Decision, the initiative covers Corporate Taxable Persons and certain categories of Exempt Persons required to register with the FTA, who were late in submitting their tax registration applications within the specified timeline and consequently incurred administrative penalties.
These categories can benefit from the initiative by submitting Corporate Tax registration applications, followed by Tax Returns or Annual Declarations through the EmaraTax digital tax services platform, within seven months from the end of the first Tax Period or Financial Year.”
The Federal Tax Authority indicated that if a person covered by this initiative meets the exemption conditions, by submitting the Tax Return or Annual Declaration within the specified seven-month period, the late registration penalty will be waived automatically, without the need to submit a reconsideration or waiver request. If the late registration penalty has already been paid, a credit equal to the penalty amount will be automatically added to the Taxable Person’s account on the EmaraTax platform, enabling the person to use the amount to settle other tax liabilities or request a refund by submitting a refund application.
The FTA explained that the cases covered by the waiver under the initiative include persons who registered and were charged a penalty, whether paid or unpaid; persons who have not yet submitted the Tax Return; or persons who have not registered, who may benefit upon completing the registration and submitting the Tax Return or Annual Declaration within the specified period. In all these cases, the penalty will be cancelled or refunded, as applicable.
The FTA called on all concerned parties to review the Public Clarification issued in this regard on the Federal Tax Authority’s website through the link: Waiver of Administrative Penalty for Failure to Submit a Corporate Tax Registration Application within the Specified Timeline. The clarification provides a detailed explanation of the conditions for benefiting from the waiver, the mechanism for refunding the Corporate Tax late registration penalty in cases where the penalty has been paid, and illustrative examples explaining the conditions and process for benefiting from the initiative in various cases.
The clarification also provides an explanation of the Persons eligible to benefit from the initiative, which include Taxable Persons for Corporate Tax purposes as well as certain Exempt Persons who are required to register for Corporate Tax.
Source: Emirates News Agency