The Federal Tax Authority (FTA) has introduced a one-time penalty waiver to support businesses in adapting to the new Corporate Tax regime in the UAE.
What Does This Mean for Your Business?
To ease the first year of corporate tax implementation, the FTA has confirmed that:
- No penalties will be imposed for late registration during the first tax year.
- This applies if your first tax return is filed within 7 months of the end of your initial tax period
Why This Matters
- Gives your business more time to understand and comply
- Encourages voluntary participation in the new regime
What You Need to Do?
- Ensure you register for corporate tax if you haven’t yet
- Prepare and file your first return within 7 months of the close of your tax period
- Update bank details in FTA portal
- Seek professional support to ensure compliance and avoid last-minute errors
- DON’T MISS THE DEADLINE — FILE WITHIN 7 MONTHS TO AVOID PENALTIES
HOW BAM TAX ADVISORS CAN ASSIST YOUR COMPANY
- We will evaluate your eligibility for the FTA’s first-year late registration penalty relief and guide you through meeting the required conditions.
- Our team will ensure your first return is accurately prepared and submitted within the required 7-month deadline to benefit from the relief.
- If a late registration penalty has already been paid but your business qualifies for the relief, we can assist in preparing and submitting a refund request to the FTA.
