Are you Eligible for UAE Corporate Tax Late Registration Penalty Waiver?
The UAE business environment is constantly evolving after the implementation of corporate tax. It is mandatory for the businesses operating in UAE to register for corporate tax. In an effort to support businesses adapting to the corporate tax framework the the Federal Tax Authority (FTA) has introduced administrative penalty waivers and installment options. To begin with FTA announced a waiver of the AED 10000 penalty for late corporate tax registration provided if you meet certain conditions. This is a relief for business who failed to meet the corporate tax registration deadline but are not ready to register.
What Is the UAE Corporate Tax Late Registration Penalty?
Under UAE Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, businesses operating in the UAE must register for corporate tax. Failure to register on time results in a fixed penalty of AED 10,000, as per Cabinet Decision No. 75 of 2023 on Administrative Penalties.
FTA offers relief to the businesses by applying for a penalty waiver or installment plan depending on their case. Either the penalty will be cancelled or the business will be allowed to pay it via installment plan.
Learn more about: UAE Corporate Tax Fines and Penalties
Key Requirements to Qualify for the Penalty Waiver
To benefit from the penalty waiver, businesses must fulfill the following conditions outlined in Cabinet Decision No. 105 of 2021:
- Submit a waiver application using the official FTA e-Services portal.
- Have a valid reason for the delay (e.g., lack of awareness, technical issues, or administrative oversight).
- Correct the violation (i.e., register for corporate tax and meet other tax obligations).
- Submit the application within the legal time frame (within 40 business days from the date the penalty was imposed).
- Not have a pattern of repeated violations — the FTA considers your compliance history when reviewing the application.
Apply for a Corporate Tax Penalty Waiver in the UAE
Here is a step-by-step guide to the waiver application process:
- Step 1: Access the FTA e-Services Portal
- Visit the FTA’s e-Services portal and log in using your registered credentials.
- Step 2: Navigate to the “Requests” Section
- Under your corporate tax account, go to “Requests” > “Penalty Redress Request” or “Administrative Penalty Waiver Request”.
- Step 3: Complete the Waiver Application
- You must provide the following:
- A clear explanation for the delay in registration
- Evidence supporting your justification (emails, internal memos, technical support records, etc.)
- Proof of corrective action taken (e.g., submission of tax return, updated business licenses)
- You must provide the following:
- Step 4: Submit the Application
- Ensure all details are accurate and documentation is complete before submitting the application.
- Step 5: Monitor Status and Respond to FTA Requests
- The FTA may request additional information. Timely responses are crucial to avoid automatic rejection.
Timelines and Important Notes
- The waiver application should be submitted within 40 business days from the day of penalty
- Based on eligibility you can apply for installment payment plans depending on your requirements.
- All the applications are reviewed by FTA on a case by case basis depending on intent, compliance history and the supporting documents.
How Alpha Auditing Can Help You with the Waiver Process?
Alpha Auditing offers expertise to the businesses to help them navigate the complexities of UAE corporate tax regulations. Based on the nature of your business we will help you through the process of penalty waiver application.
- Check Your Eligibility: Our experts review your company’s situation and determine whether you are eligible for the penalty wavier or installment plan.
- Documentation & Justification: We prepare an application letter to justify your penalty waiver claim and gather the right documents to support the request.
- FTA Portal Assistance: Our experts take care of the submission process using FTA e-services portal and ensure everything is in order.
- Follow-Up & Appeals: We manage any queries or additional documentation requests from the FTA and support appeal processes if needed.
- Ongoing Compliance: Beyond penalty waivers, Alpha Auditing helps keep your tax matters up to date — from corporate tax filings to VAT and ESR compliance.
Conclusion
A penalty waiver framework is a valuable opportunity for the businesses to become complaint without incurring heavy fines. The FTA has offered an opportunity to all the businesses who fail to register for corporate tax on time can make it right. However it is extremely important for the companies to file there application carefully and provide supporting documents correctly. Alpha Auditing can help you through out the process and make sure all the requirements are met. If you are looking to avail this opportunity get in touch now.
