The Federal Tax Authority has confirmed that more than 68,600 taxable persons benefited from the UAE's Corporate Tax Late Registration Penalty Waiver initiative across 2025 and into 2026, with the figure expected to surpass 91,000 as further businesses register for the Cabinet-approved scheme.
Active since April 2025, the initiative waives administrative penalties on corporate taxable persons and eligible exempt entities that missed Corporate Tax registration deadlines, covering penalties from 1 June 2023. To qualify, businesses must file their Tax Return within seven months of their first Tax Period end – rather than the standard nine months.
Qualifying businesses receive automatic waivers without formal applications. Previously paid penalties are credited to the taxpayer's EmaraTax account for offset against future liabilities or refund. The FTA estimates more than 22,000 eligible businesses have yet to take advantage of the initiative.
Gulf Economist Staff Writer