Many UAE businesses missed the corporate tax registration deadline. The law was new, and some firms lacked clarity, documents or preparation. The authorities announced a relief to ease the transition, but it came with conditions.
The relief in brief
The Ministry of Finance and the Federal Tax Authority announced a time-limited relief that removed the penalty for late registration for businesses that had missed the deadlines in the first period of the corporate tax system. To qualify, a business had to register and file its first return within a set period after the end of its first tax period (the announcement spoke of seven months).
The details and dates of the relief have been revised, and it may no longer be open to you. This article reflects the original announcement. Always check the FTA website to see whether a relief still applies to your case.
Why businesses missed the deadline
- They did not know when or how to register.
- The new system was confusing.
- Small companies and startups often had no tax adviser or accounting team.
- Technical problems and misunderstandings about who must register also caused delays.
Who could benefit
Small businesses, startups, one-person businesses and exempt entities that still have to register. They had to register with the FTA and file the return or financial statements within the stated period. Missing the new deadline meant the penalty could apply again.
How to use a relief like this
1. Check whether you have to register. Most businesses must, even if no tax is due. 2. Register online through the FTA portal. 3. Gather the financial records for your first tax period. 4. File the return or statements by the deadline.
An example of the deadline
For a first tax period of 1 June 2024 to 31 May 2025, a seven-month window ends on 31 December 2025. The FTA applies deadlines strictly, and missing one can bring administrative penalties.
If you miss the deadline
The standard late registration penalty is AED 10,000. Late filers may also have trouble renewing a business licence or dealing with banks.
FAQs
- Is it for all companies? No. It covered businesses that missed the registration deadline in the early period, on the conditions announced.
- Can I get a refund for a fine I already paid? Possibly, if you meet the conditions of the relief. Ask the FTA.
- Do exempt companies still need to register? Yes, and if they missed the deadline they could still benefit.
- Can I register myself? Yes, through the FTA portal, though an adviser can help.
If you registered late, or think you may have, we can review your position and handle the filing. See our corporate tax services and our UAE tax deadlines page.
Key takeaways
- The standard penalty for missing corporate tax registration is AED 10,000.
- A time-limited penalty relief was announced for early late registrants. Check whether it still applies.
- Register and file as soon as you can.
Frequently asked questions
What is the penalty for late registration?
AED 10,000.
Is the relief still available?
Check the FTA website, because the relief was time-limited and has been revised.
Do exempt entities need to register?
Yes.
Talk to a chartered accountant
Questions about your own situation? Reach us directly and we will reply with clear next steps.
This article is general information and not advice for your specific circumstances. Rules and thresholds change, so confirm the current position before you act.
