Registrations Surge After FTA’s Waiver Announcement
Businesses across the UAE that missed the deadline to register for corporate tax — and incurred a penalty — are now starting to see relief. The Federal Tax Authority (FTA) has begun issuing refunds for late registration fines, directly into companies’ tax accounts.
In a move welcomed by the business community, the FTA announced in May that penalties for late corporate tax registration would be automatically waived or refunded, provided the company submits its corporate tax return within 7 months from the end of its first tax period.
For businesses that had already paid the fine — which amounts to Dh10,000 — the refund will be credited to their tax account. If the fine was issued but not yet paid, it will be waived automatically within the system.
“Where the penalty has already been paid, the amount will be refunded to that business’s tax account,” confirmed Sumayya Zain, Founder and CEO of Dubai-based Hallmark International Auditors.
This is especially beneficial for SMEs, where saving every dirham matters. “Our auditor confirmed the refund on the late registration penalty is coming through soon,” said one business owner.
How to Qualify for the Refund
To benefit from the waiver or refund, businesses must file their corporate tax return within 7 months of the end of their first tax period. Simply registering late is not enough to qualify for the relief.
For example:
- If a company’s first tax period is from January 1 to December 31, 2024, the corporate tax return must be filed by July 31, 2025 to be eligible.
- Companies with earlier financial years, such as July 1, 2023 to June 30, 2024, must also file their return within 7 months after the end of that period to receive the waiver or refund.
Some companies — depending on their financial year — may have up to 9 months to file their returns. For instance, those following a January–December 2024 year-end would need to submit by September 2025.
Understanding the Tax Account
Refunds are processed through the business’s tax account on the EmaraTax portal, the FTA’s official platform for managing tax registrations, filings, and payments. Businesses must ensure they have an active account on the portal, as all tax-related actions — including refunds — are managed through this system.
