The United Arab Emirates provides positive business developments. The Ministry of Finance started a new program with the Federal Tax Authority (FTA). If you missed the deadline to register for corporate tax, you now have a second chance.
If you act within the allowed time, late registration penalties will be waived. The UAE has established this policy to simplify operations with the new tax system for businesses.
At Recordac Accounting and Consulting Services in Dubai, we’re here to help you take full advantage of this opportunity.
What Is the Penalty Waiver?
If your business didn’t register for corporate tax on time, don’t worry. Through the FTA, businesses can resolve their non-compliance issues.
Late registration is now possible without the additional fine penalty. The program has specific conditions that applicants must fulfill. The benefit expires after a strictly limited period. So, it’s best to act fast.
Who Can Qualify for the Waiver?
It’s simple. To qualify, your business must:
- File your Corporate Tax Return or Annual Statement
- The tax registration should occur during the first 7 months after your initial tax period ends.
That’s it! The steps, when followed, will save you from penalties.
Already Paid a Fine? You Can Get a Refund
Yes, that’s right. The FTA will return all penalties once you qualify for the waiver, even if you previously paid these penalties. The benefit requires you to submit your return during the designated deadline.
Why Is the UAE Doing This?
The action benefits both the governmental authorities and business organizations. The goals are to:
- Encourage early tax compliance.
- Ease financial pressure on companies.
- The FTA supports the transition to this new system.
- Keep the UAE business-friendly.
This move supports both UAE national goals and benefits your company operations.
What Should You Do Right Now?
If you haven’t registered for corporate tax yet, don’t wait. Here’s what you should do:
- Check your registration status
- Registration as a priority should be your primary concern if you have not enrolled already.
- File your Corporate Tax Return or Annual Declaration within 7 months of your first tax period
Failure to follow these essential procedures might make you ineligible for a penalty reduction.
Let Recordac Help You
At Recordac Accounting and Consulting Services in Dubai, we know tax rules can be confusing—especially if you’re a small business owner or just getting started with the UAE tax system.
Our expert team is ready to help you:
- Register your business for corporate tax
- File your returns on time
- Avoid penalties and stay fully compliant
Final Thoughts
The UAE’s decision to waive late corporate tax registration penalties is a golden opportunity for businesses to start fresh. Companies of all stages should take action now. The law requires business entities to register and file their returns within 7 months, which helps them maintain compliance while avoiding unnecessary penalties.
At Recordac Accounting and Consulting Services in Dubai, we’re here to guide you every step of the way. Our straightforward procedures take the burden off your shoulders when it comes to tax registration and timely filing.
Time is essential, so contact Recordac to establish your tax compliance through innovative processes.