UAE CORPORATE TAX - REGISTRATION DEADLINE
UAE to Waive AED 10,000 Fine for Late Corporate Tax Registration.
The UAE Federal Tax Authority (FTA) has announced a much-welcomed update for businesses—the AED 10,000 administrative fine for late corporate tax registration will be waived, provided businesses register within the specified grace period based on their license issuance date.
Federal Tax Authority's core strategy has been structured around expediting tax procedures for all business sectors and to encourage voluntary compliance with tax laws
The Federal Tax Authority on Wednesday, May 7, announced that it has begun implementing the UAE Cabinet Decision to exempt certain from administrative penalties resulting from the late submission of registration applications, within the specified deadline.
To qualify for the waiver of the penalty, the taxable person (or exempted categories) must submit their Tax Return (or Annual Declaration) within a period not exceeding seven (7) months from the end of their first Tax Period (or first Financial Year), instead of nine months.
Why This Matters
With the introduction of corporate tax in the UAE, many businesses were still preparing to register or unaware of the exact deadline. This waiver gives them a second chance to comply—without facing the hefty AED 10,000 penalty.
The FTA has clarified that companies that complete their registration on time according to the updated schedule will not be fined. This initiative aims to ease the compliance burden and ensure a smooth transition to the new tax system.
What You Should Do Now
If your business is operational in the UAE and you haven’t completed your corporate tax registration, now is the time. Whether you're a free zone entity, mainland company, or a natural person with commercial income exceeding AED 1 million, you are required to register.
Resident juridical person
For resident juridical person, incorporated or otherwise established or recognised prior to 1 March 2024, the month in which Licence is issued to the juridical person is an important factor (irrespective of the year of issuance). The timelines to submit the Tax Registration application shall be as per the below table:
Where a juridical person has more than one Licence, the Licence with the earliest issuance date shall be used.
Here is the updated timeline for resident juridical persons that are incorporated, established, or recognized on or after 1 March 2024, based on the Federal Tax Authority (FTA) directive:
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Corporate Tax Registration Timeline |
For Non-Resident Juridical Persons (Before, On, or After 1 March 2024)
Corporate Tax Registration for Natural Persons in UAE
(Starting from 2024 Onward)
Who does this apply to? Any natural person (i.e., individual) conducting a business or business activity in the UAE—such as freelancers, sole proprietors, or self-employed individuals—during 2024 or later and whose income exceeds AED 1 million annually
What Happens if You Miss the Deadline?
Penalty for Late Corporate Tax Registration: 📌 AED 10,000 fine for failure to submit the corporate tax registration application on time.
- Mainland and Free Zone companies
- Natural persons earning over AED 1 million from business activities
- Non-resident entities with taxable presence in the UAE
How to Avoid the Fine?
- Know your registration deadline based on license issue date, incorporation, or taxable event.
- Register before the deadline through the EmaraTax portal.
- Keep business documents and financial records ready to ensure a smooth registration process.
Need Help with Corporate Tax Compliance?
- Corporate tax registration
- Deadline tracking
- Full compliance with UAE tax laws
- Expert consultation for both residents and non-residents
Act Now! Avoid penalties and stay compliant—Contact KrezKo today for professional corporate tax services in Dubai.