FTA Public Clarification: CT Registration Deadline Penalty Waiver

On June 3, 2025, the FTA issued a new Public Clarification on Waiver of Administrative Penalty for failing to submit a Corporate Tax registration application within a specified deadline (Corporate Tax Public Clarification No. CTP006 of 2025).

Under the current tax legislation, a Taxable Person must adhere to the following deadlines:

• Persons required to register for Corporate Tax purposes are subject to an Administrative Penalty of AED 10,000 for failure to submit a Tax Registration application for Corporate Tax to the FTA within the timeline set by the FTA. This also applies to juridical persons intending to apply for the exemption stipulated in paragraphs (e) to (i) of Clause 1 of Article 4 of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Business.
• Clause 1 of Article 53 of the Decree-Law stipulates that a Taxable Person must file a Tax Return to the FTA no later than 9 months from the end of the relevant Tax Period.
• According to Article 48 of the Decree-Law, a Taxable Person must settle the Corporate Tax Payable within 9 months from the end of the relevant Tax Period.

Under the new Clarification:

• The FTA has launched an initiative to waive this Late Registration Penalty provided that a Taxable Person submits its Tax Return within 7 months from the end of its first Tax Period, instead of 9 months.
• Persons that were subject to a Late Registration Penalty and subsequently became exempt  from Corporate Tax following an application approved by the FTA may also benefit from this waiver, if they submit their annual declaration within 7 months from the end of their first Financial Year, instead of 9 months.
• Persons are eligible for this waiver even if the Late Registration Penalty has already been settled. In such a case, a refund will be made to the person’s EmaraTax account.
• This initiative does not affect the deadline during which a Taxable Person must settle the Corporate Tax Payable to the FTA, which remains payable within 9 months from the end of the first Tax Period.

The Clarification underlines that this initiative only applies to the first Tax Period, whether in the past or in the future.