More than 68,600 taxable persons have already benefited from the UAE’s Corporate Tax Late Registration Penalty Waiver initiative, the Federal Tax Authority (FTA) announced on May 14, 2026, with the total expected to surpass 91,000 once the scheme runs its course.
The Cabinet Decision underpinning the initiative took effect in April 2025 and covers late corporate tax registration penalties dating back to June 1, 2023. It applies to taxable persons and certain categories of exempt persons who missed the deadline to submit registration applications to the FTA.
To qualify for the waiver, a business must file its tax return or annual declaration within seven months of the end of its first tax period or financial year, rather than the standard nine months.
The initiative applies only to a person’s first tax period. Where the conditions are met, the late registration penalty is cancelled automatically, with no reconsideration or waiver request required.
For businesses that have already paid the penalty, a credit equal to the penalty amount will be applied to their EmaraTax account, which can then be used to offset other tax liabilities or claimed as a refund.
“The FTA is intensifying its efforts to support and assist Taxable Persons, providing continuous facilitations that enable them to fulfil their tax obligations, thereby enhancing the UAE’s competitiveness in the field of doing business. The Authority is also committed to enhancing proactive and continuous awareness of all applicable and newly introduced tax legislation, decisions, and procedures, as well as procedural facilitations to ensure smooth and seamless tax compliance,” Abdulaziz Al Mulla said.
“Indicators from the FTA’s database show that more than 22,000 Taxable Persons are eligible to benefit from the initiative during the coming period. In accordance with the esteemed Cabinet Decision, the initiative covers Corporate Taxable Persons and certain categories of Exempt Persons required to register with the FTA, who were late in submitting their tax registration applications within the specified timeline and consequently incurred administrative penalties. These categories can benefit from the initiative by submitting Corporate Tax registration applications, followed by Tax Returns or Annual Declarations through the EmaraTax digital tax services platform, within seven months from the end of the first Tax Period or Financial Year,” he added.
The FTA has directed businesses to consult the Public Clarification published on its website, which sets out eligibility criteria, the refund mechanism, and worked examples covering the main scenarios, including cases where a penalty has been assessed but not paid, cases where a tax return has not yet been filed, and cases where registration itself has not been completed.
