First Corporate Tax Return? Check Your Eligibility for Penalty Waiver in UAE
The Federal Tax Authority (FTA) has introduced an important relief measure for businesses filing their first Corporate Tax (CT) return in the UAE. This update offers eligible taxpayers an opportunity to waive the late Corporate Tax registration penalty, provided specific conditions are met.
This announcement is particularly beneficial for businesses that missed the Corporate Tax registration deadline but are otherwise compliant with their tax filing obligations.
What Is the Late Registration Penalty Waiver?
Under UAE Corporate Tax law, businesses are required to register for Corporate Tax within the prescribed timelines. Failure to do so may result in administrative penalties.
However, recognizing the challenges faced during the initial implementation phase of Corporate Tax, the FTA has allowed a one-time relief for first-time Corporate Tax return filers. Eligible businesses can have their late registration penalty waived, subject to compliance with the filing timeline.
Key Eligibility Condition You Must Meet
To qualify for the waiver, businesses must ensure:
- The first Corporate Tax return is filed within seven (7) months from the end of the relevant Tax Period.
If this condition is met, the late Corporate Tax registration penalty may be waived, even if the registration itself was completed late.
How to Check Your Eligibility Online
The Federal Tax Authority has enabled a dedicated online eligibility checker to make the process simple and transparent.
To check your eligibility:
- Visit the official FTA portal
https://tax.gov.ae/en/ct.waiver.check.aspx - Enter your Establishment Date
- Select the relevant Tax Period
The system will instantly display:
- Whether you are eligible for the waiver
- The next action steps you need to take
Why This Update Is Important for Businesses
This relief is time-sensitive and applies only to businesses filing their first Corporate Tax return. Missing the filing deadline may result in the penalty becoming applicable again.
Key benefits of acting now:
- Avoid unnecessary administrative penalties
- Maintain Corporate Tax compliance
- Reduce financial and compliance risks
- Ensure a clean tax record with the FTA
Businesses that delay checking eligibility or filing their return within the required timeframe may lose the benefit of this waiver.
What Businesses Should Do Next
- Check eligibility immediately using the FTA portal
- Ensure accurate Corporate Tax return preparation
- File the first return within the 7-month deadline
- Seek professional support if clarification or assistance is needed
Timely action can help businesses stay compliant and penalty-free during the early stages of UAE Corporate Tax implementation.
Final Thoughts
The FTA’s late registration penalty waiver provides a valuable compliance opportunity for first-time Corporate Tax filers. Businesses are strongly advised to review their tax position, confirm eligibility, and act promptly to benefit from this relief.
Staying informed and compliant today can prevent avoidable costs tomorrow.Stay compliant and penalty-free.
Speak to our Corporate Tax experts today for end-to-end UAE Corporate Tax support.
