In a landmark move to reinforce its commitment to a transparent, compliant, and business-friendly environment, the UAE has unveiled a Penalty Waiver Initiative for late corporate tax registrations.

Announced by the Ministry of Finance (MoF) and Federal Tax Authority (FTA), this initiative is designed to ease the transition into the Corporate Tax system while encouraging timely and voluntary compliance among businesses across the country.

As companies adapt to the new tax framework, this initiative offers a crucial opportunity to register without facing penalties — ensuring a smoother integration into the UAE’s evolving financial landscape.

Initiative Objectives
  • Promote voluntary compliance with the UAE Corporate Tax Law
  • Ease administrative and financial burdens during the transitional period
  • Encourage timely submission of tax returns and annual declarations
  • Enhance the UAE’s global competitiveness and investment appeal
Who Can Benefit?

This initiative applies to all corporate taxpayers and certain exempt persons required to register with the FTA.

To be eligible for the waiver of late registration penalties, businesses must:

  • Submit their corporate tax return or declaration within seven months of the end of their first tax period
  • Ensure full compliance with all Corporate Tax Law provisions

Furthermore, businesses that have previously paid penalties may be eligible for refunds, subject to meeting the revised conditions.

Act Now: Ensure Compliance and Save Costs

This is a final window of opportunity for businesses that have not yet registered for Corporate Tax to come into compliance without incurring additional financial penalties.

To take advantage of this initiative:

  • Assess your eligibility for the penalty waiver
  • File your tax return or declaration on time
  • Seek expert advice to ensure full legal compliance
How NAS Chartered Accountants LLC Can Help

We are committed to supporting your business every step of the way. Our experienced tax advisors offer:

  • One-on-one consultations to evaluate your eligibility
  • Complete support for FTA registration and tax filing
  • Compliance checks to ensure adherence to UAE tax laws
  • Assistance with refund claims, where applicable
Conclusion

The UAE’s Penalty Waiver Initiative is more than just a relief measure — it’s a proactive step toward building a robust, transparent, and competitive economy. Businesses that act promptly can not only avoid unnecessary penalties but also position themselves for sustainable growth in the new tax era.

Don’t delay. Let NAS help you turn this opportunity into a strategic advantage.
Contact NAS UAE today to book a consultation and discover how we can streamline your tax compliance and drive your business forward.
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