UAE’s FTA Launches Penalty Waiver Scheme for Corporate Tax Compliance in 2025

• The UAE Federal Tax Authority introduced a penalty waiver scheme in 2025 for businesses to avoid or recover fines.
• The scheme includes waiving the AED 10000 penalty for late Corporate Tax registration.
• It supports companies adapting to the Corporate Tax regime introduced in 2023.
• Businesses must submit their first Corporate Tax return within seven months from the end of their first tax period to qualify.
• The deadline for companies with a financial year ending December 31, 2024, is July 31, 2025.
• Eligible businesses can waive unpaid penalties or claim a refund for the late registration fine.
• The initiative targets taxable persons and exempt entities required to register for Corporate Tax.
• Filing within the timeframe helps avoid last-minute errors and supports better financial planning.
• The refund option is credited directly to the FTA tax account for those already penalized.
• The scheme is a limited-time option tied to the July 31, 2025 deadline.
• Companies are encouraged to visit the FTA website for guidance on filing and eligibility.

Source: hlbhamt.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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