UAE FTA Expects 91,000 Businesses to Benefit from Corporate Tax Penalty Waiver

UAE, 22 May, 2026: The Federal Tax Authority (FTA) announced that more than 68,600 businesses have already benefited from the UAE’s Corporate Tax late registration penalty waiver initiative during 2025 and early 2026. The Authority expects the number of beneficiaries to exceed 91,000 in the coming period.

The initiative, introduced under a Cabinet Decision effective from April 2025, allows eligible Taxable Persons and certain Exempt Persons to have late registration penalties waived if they meet specific conditions.

To qualify, businesses must submit their first Corporate Tax Return or Annual Declaration within seven months from the end of their first Tax Period or Financial Year, instead of the standard nine-month deadline.

The FTA confirmed that penalties will be waived automatically without requiring a separate request. If penalties were already paid, the amount will be credited automatically to the taxpayer’s EmaraTax account for future tax payments or refunds.

FTA Director General Abdulaziz Al Mulla encouraged unregistered businesses to take advantage of the initiative, highlighting the UAE’s commitment to supporting voluntary tax compliance and maintaining a flexible business-friendly tax environment.

The Authority also urged taxpayers to review the official clarification available on the Federal Tax Authority website for detailed eligibility conditions and procedures.