UAE: Over 33,900 Companies Exempted From Corporate Tax Late Registration Penalty

Over 33,900 companies in the UAE have benefitted from the penalty waiver initiative for late corporate tax registration, the Federal Tax Authority (FTA) said on Tuesday.

The authority, meanwhile, has renewed its call for corporate tax registrants who have not yet registered to expedite the submission of their registration applications, and to then file their tax returns through the“EmaraTax” digital tax services platform for their first tax period.

This is in order to benefit from the initiative, which applies to taxable entities and some exempt persons required to register with the Authority.

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The Authority stressed that Thursday, July 31 will be the final deadline to benefit from the initiative for the majority of corporate taxpayers whose first tax period coincides with the calendar year-from January 1 to December 31, 2024.

To qualify, they must complete all registration procedures and submit their corporate tax returns via the EmaraTax platform before the end of July. The FTA emphasised that failure to meet the conditions by July 31 will result in ineligibility for the exemption, and a late registration penalty of Dh10,000 will be imposed on unregistered entities.

The FTA clarified that to qualify for the waiver of the late registration penalty, the taxable person (or the exempt person required to register) must submit their corporate tax return (or annual declaration) within no more than seven months from the end of their first tax period (or financial year), instead of the usual nine-month deadline.

The Penalty Waiver Initiative, the FTA reiterated, only applies to the first tax period of the taxable person or required exempt persons.

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