UAE FTA Gives Businesses Final Chance to Avoid Dh10,000 Corporate Tax Fine
The UAE’s Federal Tax Authority (FTA) has issued a clear and urgent reminder to businesses: those that missed the deadline to register for Corporate Tax (CT) still have a chance to avoid the Dh10,000 penalty — but only if they act fast.
Critical July Deadline for Late Registrants
Companies that were late in registering for CT must now submit their tax returns for the financial year January to December 2024 by the end of July 2025. Doing so will make them eligible for a waiver of the Dh10,000 late registration penalty.
This grace period is not extended to the usual nine-month filing window. Instead, the FTA requires these businesses to submit their tax returns within seven months from the end of their financial year. In other words, July 31, 2025 is the absolute cut-off for late registrants to avoid fines.
What About Businesses That Registered on Time?
Companies that completed their CT registration within the designated timelines have until September 30, 2025 to file their returns for the 2024 tax period, assuming their financial year runs from January to December. For those following a financial year from April to March, the filing deadline is October 2025.
Why Many Businesses Missed the Registration Deadline
According to tax experts, many small and medium-sized enterprises (SMEs) confused the requirements for CT registration with those of VAT. While VAT registration is required once a business reaches Dh375,000 in annual revenue, CT registration is mandatory for all UAE businesses — even those with zero income.
“The confusion stemmed from linking corporate tax requirements with VAT thresholds,” explains Mustaq Khatri, founder and CEO of mkACE Management Consultants. “However, CT registration is obligatory regardless of business activity or income level.”
FTA’s Outreach and Awareness Efforts
To ensure clarity, the FTA has been conducting awareness sessions across the Emirates. The most recent workshop, held in Ras Al Khaimah, focused on helping business owners understand how to determine taxable income under the corporate tax framework.
In all sessions, the FTA has emphasized that to qualify for the penalty waiver, affected businesses must file their returns within seven months from the end of their first tax period — a crucial detail that could save businesses thousands of dirhams.
Final Reminder
With just over 30 days remaining until the July deadline, businesses that delayed their CT registration must now prioritize preparing and submitting their tax returns. Missing this final opportunity could mean facing a Dh10,000 fine — a costly mistake that’s easily avoidable with timely action.
