The waiver of the AED 10,000 late corporate-tax registration penalty applies to every category of taxpayer — but only where the first return is filed within 7 months of the first tax period’s end, not the standard 9.
What is the FTA waiver?
The UAE Federal Tax Authority (FTA) grants a full waiver of the AED 10,000 administrative penalty for late corporate-tax registration. There is one condition: file the first tax return (or annual declaration for exempt persons) within 7 months of the end of the first tax period — rather than the standard 9-month deadline.
Who does it apply to?
The initiative covers all key categories:
- mainland companies;
- free-zone companies — including those applying the 0% rate;
- branches of foreign companies with a permanent establishment;
- resident individuals and freelancers with business income.
What are the deadlines?
| First tax period ended | Filing deadline for the waiver |
|---|---|
| 31 December 2025 | 31 July 2026 |
| 31 March 2026 | 31 October 2026 |
Once the 7-month window closes, the right to the waiver lapses and the late-registration penalty applies as usual.
What should businesses do now?
Check in the EmaraTax portal whether the company is registered for corporate tax, and if the first return has not yet been filed, assess whether the deadline falls within the 7-month window. If the penalty has already been debited but the company met the deadline, the refund arrives automatically.
This article is for information only and is not tax advice. Verify deadlines and conditions against the current FTA publication before filing.
