The UAE Ministry of Finance (MoF) and Federal Tax Authority (FTA) have launched an initiative to waive late Corporate Tax registration penalty. This initiative aims to ease administrative and financial burdens on businesses as well as encourage timely submission of corporate tax return.

Just to recap, it has been imposed an administrative penalty of AED10,000 for late registration of Corporate Tax on businesses that do not submit their Corporate Tax registration applications within the timelines specified by the FTA.

The conditions to qualify for the penalty waiver initiative, businesses must meet the following conditions:
– Businesses must file their Corporate Tax returns within seven months from the end of their first tax period. This means that even if a business missed the initial registration deadline, it can avoid penalties by filing the necessary documents within this extended period.
– Business must keep full compliance with the provisions of the Corporate Tax Law

In addition, FTA stated it will refund fines already paid by those who meet the above conditions.