Did You Miss the UAE Corporate Tax Registration Deadline? Here’s How to Avoid the AED 10,000 Fine

In April 2025, the UAE launched its landmark corporate tax system—and with it, stiff penalties for late registrations. However, the government also introduced a lifeline: a one-time penalty waiver to help businesses navigate this change.

How to Avoid or Refund the AED 10,000 UAE Corporate Tax Fine

If your business fails to register for corporate tax on time, the FTA imposes a flat AED 10,000 penalty  . Thankfully, the UAE Cabinet and FTA issued a temporary waiver applicable to entities that:

1. Register late, and

2. File their first corporate tax return or annual declaration within 7 months of the end of their first tax period.

For example, if your fiscal year ends December 31, 2024, you must submit your return by July 31, 2025 to qualify for the waiver.

Why the UAE Introduced this Relief?

The goal is to smooth the transition to a new taxation regime by:

#Easing financial pressure on SMEs and startups

#Encouraging voluntary compliance

#Reducing administrative burden during the rollout phase

Who Qualifies?
The waiver is available to:

#Taxable businesses (LLCs, professional entities, free zone entities) that missed the registration deadline

#Exempt entities required to file annual declarations

#Natural persons (freelancers, sole traders) with annual business turnover exceeding AED 1 million

#Even if you’ve already paid the AED 10,000 fine, you can claim a refund by filing your return on time within the 7-month window.

Step-by-Step: How to Qualify and Avoid or Refund the Fine

1. Verify Eligibility

Check if your net profit exceeds AED 375,000 or if you must register due to turnover or exemptions.

2. Gather Required Documents

Trade licence, MOA/AOA, shareholder details, audited financials, etc.

3. Register via EmaraTax

Access EmaraTax, log in (or register), and submit your corporate tax application.

4. File Your Return Within 7 Months

Submit your first corporate tax return or annual declaration by the deadline to claim the waiver.

5. Request a Refund (if Applicable)

If you already paid the AED 10,000 penalty, file a Penalty Waiver Request in EmaraTax under “Requests” → “Penalty Redress”.

Consequences of Missing the Window

Fail to file within seven months? You’ll face escalating penalties:

#AED 1,000 for the first month

#AED 2,000 each additional month

#Capped at AED 50,000

This is just the registration penalty—other fines can apply for inaccurate returns or missed tax payments.

The Broader Significance

An inclusive, supportive compliance environment, not a punitive one

A push towards transparent financial practices across all sectors

A positive signal to foreign investors and SMEs that the UAE is a fair business hub

Final Thoughts

If you’ve missed the corporate tax registration deadline—or are about to—this waiver is your chance to stay compliant without penalties. Time is crucial: file within the seven-month window and make sure your paperwork is accurate. And if you’ve already paid the fine, don’t miss the chance to reclaim it. Contact us today for a stress-free, penalty-free experience.

Work with the Top Corporate Tax Consultants in UAE

Let our expert tax consultants in UAE handle your TRC process while you focus on growing your business.

Contact us today to schedule a free consultation.

FAQs
What is the penalty for missing the UAE corporate tax registration deadline?

The Federal Tax Authority (FTA) imposes a flat AED 10,000 fine for late corporate tax registration in the UAE.

Is there a way to avoid or refund the AED 10,000 fine?

Yes. The UAE government has introduced a one-time waiver. If you register late but file your first return within 7 months of your tax period’s end, the fine can be waived or refunded.

Who is eligible for the penalty waiver?

The waiver applies to:

Freelancers/Natural persons with turnover above AED 1 million

Businesses (LLCs, Free Zones, etc.)

Exempt entities needing to file declarations