Abu dhabi: More than 33.9 thousand beneficiaries have taken advantage of the Corporate Tax Late Registration Penalty Waiver Initiative, as announced by the Federal Tax Authority (FTA). The FTA has reiterated its call for Corporate Tax registrants who have yet to submit their registration applications, emphasizing the importance of filing their first Tax Returns through the ‘EmaraTax’ digital platform to benefit from the initiative.
According to Emirates News Agency, the FTA has stated that the deadline to benefit from this initiative is Thursday, 31st July, for the majority of Corporate Tax payers whose first Tax Period aligns with the calendar year from 1st January to 31st December 2024. To qualify, applicants must complete all necessary procedures related to registration and filing their Corporate Tax Returns via ‘EmaraTax’ before the end of July 2025.
The FTA has made it clear that failing to meet these requirements by the specified deadline will result in the imposition of a late registration penalty amounting to AED10,000 for non-registered persons. To be exempt from this penalty, the taxable or exempt person must submit their Corporate Tax Return or annual declaration within seven months from the conclusion of their first Tax Period or financial year, as opposed to the standard nine-month deadline.
The Penalty Waiver Initiative is applicable only to the first Tax Period for taxable persons and certain exempt persons required to register with the FTA. A public clarification issued by the FTA contains detailed explanations regarding the conditions for benefiting from the waiver, the refund mechanism for penalties already paid, and illustrative examples for different scenarios.
The clarification specifies that if a person meets the conditions-filing the Tax Return within seven months from the end of the first Tax Period or filing an annual declaration within the specified timeframe-they will automatically be exempt from the “Late Registration Penalty” without needing to submit additional requests. In instances where the penalty has already been paid, the amount of AED10,000 will be credited to the individual’s ‘EmaraTax’ Corporate Tax account, allowing them to use it for settling other tax obligations or requesting a refund by submitting a refund application to the FTA.