The UAE Federal Tax Authority expects more than 91,000 businesses and exempt entities to benefit from its corporate tax late registration penalty waiver programme as authorities continue efforts to encourage voluntary compliance.
The UAE Federal Tax Authority (FTA) has announced, on 14 May 2026, that more than 68,600 taxable persons benefited from the Corporate Tax Late Registration Penalty Waiver initiative during 2025 and the early part of 2026, as the country continues to expand support measures linked to its corporate tax regime.
The initiative, introduced under a Cabinet Decision that took effect in April 2025, waives administrative penalties imposed for the late submission of corporate tax registration applications. The measure applies to penalties linked to registration obligations from 1 June 2023, provided taxpayers meet specified conditions.
According to the FTA, the total number of beneficiaries is expected to exceed 91,000 in the coming period. The authority added that more than 22,000 taxable persons are still eligible to benefit from the scheme.
To qualify for the waiver, taxable persons and certain exempt persons required to register for corporate tax must submit their tax return or annual declaration within seven months from the end of their first tax period or financial year. This shortens the usual filing period from nine months to seven months for the first tax period only.
FTA Director General HE Abdulaziz Al Mulla urged unregistered corporate taxpayers to take advantage of the initiative, describing it as part of the UAE’s broader efforts to maintain “a flexible tax legislative environment” while supporting economic competitiveness and voluntary compliance.
He said the authority was continuing to provide facilitations and awareness initiatives to help businesses meet their tax obligations smoothly and efficiently.
The FTA confirmed that eligible taxpayers do not need to submit a separate waiver or reconsideration request. Penalties are waived automatically once the required conditions are met.
Where a late registration penalty has already been paid, the authority said a credit equal to the penalty amount will automatically be added to the taxpayer’s EmaraTax account. The amount can then be used against future tax liabilities or refunded through a refund application.
The waiver applies to several categories of taxpayers, including those who registered late and incurred penalties, whether paid or unpaid, those who have yet to submit a tax return, and businesses that have not yet registered but complete the process within the specified timeframe.
