The Federal Tax Authority (FTA) has started implementing a Cabinet Decision that exempts certain corporate taxpayers from penalties for late registration, if specific conditions are met.
To benefit from the exemption, businesses must submit their corporate tax return or annual declaration within seven months from the end of their first tax period or financial year.
This change shortens the original nine-month deadline and applies only to the first filing period.
The FTA confirmed that the exemption applies regardless of whether the due date for filing falls before or after the decision was issued.
Refunds for paid penalties
If a business has already paid a penalty but meets the exemption criteria, the amount will be credited back to their FTA account. Those who submitted tax returns before the decision and were fined will also have penalties refunded.
FTA urges timely action
Khalid Ali Al Bustani, Director-General of the FTA, encouraged businesses to register and file through EmaraTax within the new timeframe to avoid penalties and benefit from the exemption. He added that the FTA aims to support voluntary compliance and promote transparency through updated procedures and continuous communication with the business community.
The FTA also reported that over 543,000 businesses had registered for corporate tax by the end of Q1 2025, showing growing awareness and engagement with tax requirements.
Who qualifies for exemption
The FTA clarified three main scenarios for the penalty waiver:
Registered but unpaid penalty: Must file the return within 7 months to avoid the penalty.
Penalty already paid: Return must be filed within 7 months to receive a refund.
Not yet registered: Must register and file the return within 7 months to be exempt.
tanvir@dubainewsweek.com
