Big Relief for UAE Businesses: FTA Announces Corporate Tax Penalty Waiver
In a landmark move to support small and medium-sized enterprises (SMEs), startups, and established companies, the Federal Tax Authority (FTA) of the UAE has launched a Corporate Tax Penalty Waiver Initiative .
This new policy provides a limited-time opportunity for businesses that have missed the initial corporate tax registration deadline to become compliant without facing financial penalties.
📌 What Is the Corporate Tax Penalty Waiver?
The FTA’s Corporate Tax Penalty Waiver allows businesses to:
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✅ Register for UAE Corporate Tax without incurring late penalties
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✅ Submit their first return within 7 months after the end of their first tax period
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✅ Remain fully compliant with UAE Corporate Tax Law
This initiative underscores the UAE’s ongoing commitment to fostering a business-friendly environment by easing the burden on new and growing businesses.
🧾 Who Qualifies for the Penalty Waiver?
This waiver is especially beneficial for:
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Businesses that were unaware of the Corporate Tax requirements
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Companies that missed the FTA registration deadline
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Freelancers, SMEs, and startups operating without formal tax structures
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Mainland and Free Zone entities needing to regularize their tax status
📆 Example: How the 7-Month Rule Works
Let’s say your company’s first tax period ends on 31 December 2024. Under the FTA’s guidelines, your first corporate tax return must be submitted by 31 July 2025.
If you register and submit your return within this 7-month window, penalties for late registration will be waived.
🛠️ How NAM Accountants Can Help
At NAM Accountants, we simplify compliance with personalized support tailored to your business size, structure, and industry.
We offer:
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✅ Corporate Tax registration on the FTA portal
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✅ Timely return filing and tax computation
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✅ Advisory on FTA rules and documentation
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✅ Setup of accounting systems (Zoho Books, Tally)
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✅ Ongoing support for tax planning and audits
🔍 Why Act Now?
The penalty waiver is temporary — and once the window closes, late registration could result in fines ranging from AED 10,000 or more. Proactive action now can save you time, money, and stress.
📢 Don’t wait until the deadline is near. The earlier you register and file, the smoother your compliance process will be.
📞 Contact NAM Accountants Today
Get expert help to register for UAE Corporate Tax and benefit from the FTA’s penalty waiver.
