Every UAE company and Free Zone entity must register for Corporate Tax, even if it expects to pay nothing. Registering late carries an administrative penalty of AED 10,000. The FTA has offered a way to have that penalty waived, and thousands of businesses still qualify.
Who has to register?
Mainland and Free Zone companies, branches of foreign companies with a permanent establishment, and individuals whose business turnover exceeds AED 1 million in a calendar year. Registration deadlines for existing companies were set by licence issue month, and new companies generally have three months from incorporation.
How the waiver works
- Submit your first Corporate Tax return, or annual declaration if you are exempt, within seven months of the end of your first tax period
- That is two months earlier than the normal nine-month filing deadline
- No separate waiver request is needed: the FTA removes the penalty automatically
- If you already paid it, the amount is credited back to your EmaraTax account
The waiver does not extend the filing deadline. If you file after nine months, you face late filing penalties as well.
Example
A company with a calendar-year tax period registered late. Its first tax period ended on 31 December 2025, so the normal filing deadline was 30 September 2026. To benefit from the waiver it needed to file by 31 July 2026.
If you missed the seven-month window
- File the return as soon as possible to stop further penalties building up
- Check EmaraTax for every penalty raised and pay or dispute it in time
- Consider a reconsideration request if you have a genuine reason, such as illness or a system error, supported by evidence
- Fix the cause: missing books are the most common reason returns are late
Why your books decide this
Seven months only works if your year-end accounts are closed early. Monthly bookkeeping, reconciled bank accounts and a clean trial balance by month two after year end make an early return realistic.
Need help?
SMAS Venture handles Corporate Tax registration, year-end accounts and return filing on a fixed timetable. Book a free consultation.
