Have you been subjected to a penalty for the delayed submission of your Corporate Tax registration?
If yes, there is some good news for you.
In April 2025, the UAE Ministry of Finance has announced that the Federal Tax Authority (‘FTA’) may waive or refund (where paid) an administrative penalty imposed for failing to submit the Corporate Tax (CT) registration application within the specified timeframe, provided certain conditions are met. The FTA has now issued a Public Clarification (CTP006) explaining the criterion for availing the waiver or refund of administrative penalty.
Which penalties are covered under this waiver scheme?
The waiver specifically covers the administrative penalty of AED 10,000 imposed for failing to submit the CT registration application within the stipulated timeline.
How can business benefit from this waiver scheme?
To qualify for the waiver, a taxable person must file their CT return or an exempt person must submit their annual declaration within seven months from the end of their first tax period or financial year, instead of the standard nine-month deadline.
Is any sperate application required to be submitted to FTA to avail the penalty waiver?
No separate application or reconsideration request is required. The penalty will be automatically waived once the taxpayer complies with the seven-month filing deadline for filing the CT return or submitting the annual declaration. In case the business has already paid the penalty, the FTA will refund the amount by way of credit to the Person’s EmaraTax CT account.
What if a reconsideration application for waiver of administrative penalty has already submitted and is still pending decision?
If a request for penalty reconsideration has already been filed with the FTA, it will be considered as null and void under this scheme, as the penalty is waived by default if the taxpayer meets the required compliance.
What should you do next?
We recommend reviewing your Corporate Tax compliance status immediately. If eligible, ensure that your CT return for the first tax period is submitted within seven months of the period’s end to fully benefit from the penalty waiver scheme.
Need assistance on your CT compliance?
Please reach out to us on info@reina-consulting.com to stay compliant and avail the benefit of the penalty waiver scheme.