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UAE Corporate Tax Penalty Waiver 2025
What Businesses in UAE Need to Know
The UAE’s new corporate tax regime has introduced strict compliance requirements for businesses, but the government has also rolled out a Corporate Tax Penalty Waiver to help companies transition smoothly. Here’s a concise, SEO-friendly guide to understanding the penalty waiver, eligibility, and how to stay compliant—brought to you by HAS Global Tax Consultants.
What Is the UAE Corporate Tax Penalty Waiver?
The UAE Corporate Tax Penalty Waiver is a one-time relief initiative by the Ministry of Finance and the Federal Tax Authority (FTA). It allows businesses that missed the initial corporate tax registration deadline to have the AED 10,000 late registration penalty waived—if they file their first corporate tax return within seven months from the end of their first tax period. If the penalty was already paid, it will be refunded to the company’s tax account.
Example:
If your first tax period ends on 31 December 2024, you must file your return by 31 July 2025 to benefit from the waiver.
Why Was the Waiver Introduced?
Encourage voluntary compliance and early registration
Support SMEs and reduce financial burden during the transition
Promote a business-friendly environment and economic growth
Who Qualifies for the Penalty Waiver?
You are eligible if:
You are a taxable business (LLC, Free Zone company, private firm, etc.) or an exempt entity (such as qualifying investment funds)
You file your first corporate tax return or annual report within seven months after your first tax period ends
You maintain proper records and accurate filings
Note:
Penalties related to tax evasion or deliberate non-compliance are not eligible for the waiver.
Key Steps to Avail the Penalty Waiver
Register for Corporate Tax on the EmaraTax portal
File your corporate tax return within seven months from the end of your first tax period
Ensure accurate and complete documentation for all filings
Monitor your tax account for any refunds if you have already paid the penalty
Essential Compliance Tips
Register early and mark all tax deadlines
Maintain detailed financial records for at least 5-7 years
Consult with tax experts to avoid costly mistakes and ensure audit readiness
Stay updated on FTA regulations and changes
Why Choose HAS Global Tax Consultants?
At HAS Global Tax Consultants, we help you:
Navigate the UAE’s evolving tax landscape
Ensure timely registration and accurate filing
Maximize your eligibility for penalty waivers
Stay fully compliant and penalty-free
Contact us today to secure your compliance and protect your business from unnecessary fines.
Act now—file your first UAE corporate tax return on time and take advantage of the penalty waiver for a smooth, stress-free transition to the new tax regime.