Business didn’t register for corporate tax on time in 2024, there’s some good news. The UAE has introduced a penalty waiver that could save you from a fine — or even get back what you already paid. 

This move comes from the Ministry of Finance and the Federal Tax Authority (FTA). It’s meant to help companies that are still adjusting to the new tax rules, especially during this first year of the corporate tax rollout. 

Who Can Benefit?

This applies to any company whose tax period is from 1 January 2024 to 31 December 2024. You’re eligible for the waiver if you: 

  • (a) Have already paid the penalty 
  • (b) Got penalized but haven’t paid yet 
  • (c) Haven’t registered at all 

To qualify, just submit your tax return (or annual declaration, if exempt) by 31 July 2025. 

If you do that, the FTA may cancel the fine or refund the amount you paid. 

What Were the Deadlines?

  • (a) Companies set up before 1 March 2024 had to register based on their trade license date. 
  • (b) New companies formed after 1 March 2024 must register within 3 months of incorporation. 
  • (c) Foreign companies with a presence in the UAE must register under separate rules
    .     

Missing these deadlines normally means a AED 10,000 penalty. This waiver helps avoid that

What’s Not Clear Yet?

  • The FTA hasn’t given full details about: 

    • (a) How to apply for a refund 
    • (b) What documents are needed 
    • (c) Whether companies can appeal older penalties 

    For now, it’s best to keep an eye on FTA announcements or talk to a tax advisor. 

     

Need Support?

Not sure if you’re eligible? Or confused about the deadline? 

Get in touch with our team today — we’ll make it simple.