The Federal Tax Authority (FTA) has renewed its call for businesses subject to corporate tax but not yet registered, urging them to swiftly submit their registration requests and tax declarations through the “Emirates Tax” digital service platform. This initiative allows participants to benefit from a waiver of the late registration penalty for corporate tax, which has already attracted 33,900 beneficiaries. As the deadline approaches, it is crucial for eligible entities to act promptly to take advantage of this opportunity.
Key Details of the Waiver Initiative
The FTA revealed in a recent press release that the number of beneficiaries from the initiative aimed at relieving the late registration penalty for corporate tax has reached an impressive 33,900. As part of the initiative, businesses must recognize that the last date to register and submit their tax declarations is Thursday, July 31. This applies particularly to those whose first tax period aligns with the calendar year, from January 1 to December 31, 2024. Therefore, it is essential to complete the registration procedures and file tax declarations via “Emirates Tax” by the end of July 2025. Failure to meet these requirements by July 31 will result in a penalty of 10,000 AED for those who remain unregistered.
Conditions for Eligibility
To qualify for the waiver of the late registration penalty for corporate tax, the taxable entity must submit their tax declaration or annual statement within seven months following the conclusion of their first tax period, rather than the standard nine months. It is important to note that this waiver initiative is applicable only to the initial tax period for the liable party or exempt individuals requiring registration.
Comprehensive Guidelines Provided
The FTA has issued a detailed public clarification regarding the waiver initiative, accessible via a dedicated link. This comprehensive explanation outlines the eligibility criteria for benefiting from the waiver of the late registration penalty for corporate tax, as well as procedures for refunding penalties already paid. It includes illustrative examples to clarify the conditions and operational guidelines for various scenarios. Anyone who meets the criteria outlined in this initiative will automatically be granted an exemption from the late registration penalty without needing to submit a reconsideration request.
Automatic Refund Process for Previously Paid Penalties
For those who have already paid the late registration penalty, the FTA will credit the amount of 10,000 AED back to the taxpayer’s account on the “Emirates Tax” platform. This credit can then be used to settle other tax obligations or reclaimed from the authority through a refund request. The initiative not only simplifies the registration process but also alleviates potential financial burdens for businesses navigating the new corporate tax landscape.