If your company’s first corporate tax period ended on 31 December 2024 and you missed the registration deadline, there’s still time to avoid penalties, but you must act fast. 

Under the UAE Corporate Tax Penalty Waiver initiative, the Federal Tax Authority (FTA) has confirmed that eligible businesses can still qualify for a full waiver of administrative penalties, only if they file their corporate tax return or annual statement within 7 months from the end of their first tax period. This 7-month window from the end of your first tax period is critical. Filing after this deadline means the penalties will apply, even if you’ve since registered. 

Understanding the UAE Corporate Tax Penalty Waiver Initiative 

The UAE corporate tax penalty waiver initiative aimed at assisting businesses that either missed the corporate tax registration deadline or were previously fined for late compliance. This initiative offers a structured opportunity for businesses to resolve their tax obligations without facing additional financial penalties, reflecting the FTA’s efforts to promote voluntary compliance during the initial phase of the new tax regime. 

For many businesses, this presents a much-needed chance to reduce financial pressure and transition into the UAE’s tax system with greater ease and clarity. 

Who Can Take Advantage of the UAE Corporate Tax Penalty Waiver? 

The waiver is designed to accommodate various non-compliance scenarios. You may be eligible if: 

• You were fined for late registration but haven’t yet paid the penalty 

• You haven’t registered for corporate tax at all 

• You already paid the fine but now meet the criteria for a refund 

This inclusive approach of UAE corporate tax penalty waiver ensures that both late filers and those seeking to rectify their compliance status still have a clear path forward, provided they act promptly. 

The Core Condition: The 7-Month Filing Rule 

To benefit from this UAE corporate tax penalty waiver, either through avoiding a pending penalty or reclaiming one already paid, you must adhere to a 7-month compliance window: 

• Taxable persons must submit their Corporate Tax Return within 7 months from the end of their first tax period 

• Exempt persons must file their Annual Declaration within the same timeframe 

Meeting this condition is essential for accessing relief under the FTA’s initiative. 

Why the UAE Corporate Tax Penalty Waiver Initiative Matters:

Beyond penalty relief, this initiative serves a broader purpose:

• Encourages early and voluntary compliance in the first year of the new regime 

• Reduces the initial compliance burden for businesses still adapting 

• Supports smoother integration into the corporate tax framework 

• Boosts confidence in the UAE’s business environment by making the transition supportive and fair 

Don’t Miss This Second Chance! 

This is a one-time opportunity for businesses to correct their course without facing penalties. If your first tax period ended in December 2024 and you haven’t registered yet, the clock is ticking. 

File by 31 July 2025. Avoid penalties. Protect your compliance standing. 

Missed the Deadline? MS Helps You Qualify, Comply, and Claim Relief 

At MS, we offer end-to-end support to help businesses take full advantage of the UAE Corporate Tax penalty waiver. Whether you’ve missed the registration deadline, already paid a penalty, or are unsure about your eligibility, our team assesses your specific situation and guides you through the necessary steps. We ensure your Corporate Tax Return or Annual Declaration is filed accurately within the required 7-month window, enabling you to qualify for the waiver or initiate a refund. For those still unregistered, we handle late registration and bring your compliance status up to date.