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Understanding the AED 10,000 Penalty for Corporate Tax Registration Delays in the UAE (CTP006)

CTP006, issued on 2 July 2025, is a Public Clarification from the FTA outlining a waiver initiative for the AED 10,000 administrative penalty imposed under Cabinet Decision No. 75 of 2023 on businesses late registration for Corporate Tax.


Who Qualifies for the Waiver?

Any Taxable Person—whether a natural or juridical entity—who misses the original registration deadline can qualify, provided they:

  • File their first Corporate Tax Return (or annual declaration for exempt entities) within 7 months of their first Tax Period ending (instead of the standard 9 months).

  • This applies to both paid and unpaid penalties; even if the penalty was already paid, it can be waived and refunded or credited in EmaraTax.

  • Entities within Corporate Tax Groups also qualify if the Group’s return is submitted within the 7-month window.


How It Works in Practice

  • Deadline Example: A UAE business with a 1 January–31 December tax period must file by 31 July to qualify. A business with an April–March cycle must file by 30 September.

  • No Action Needed: The penalty is automatically waived on EmaraTax—no special waiver form required.

  • Exceptions: If a reconsideration request was already approved (i.e., the penalty already waived), no further action is necessary.


Why It Matters

  • Financial Relief: A quick remedy to avoid a hefty AED 10,000 fine for missing deadlines.

  • Supports Voluntary Compliance: Demonstrates the FTA's willingness to assist taxpayers during the transition period.

  • Compliance Momentum: Even as enforcement tightens, this waiver encourages timely filings and good compliance habits.


Take These Steps if You Missed Registration

  1. File your first Corporate Tax Return (or declaration for exempt entities) within 7 months of the first tax year-end.

  2. Check EmaraTax to ensure the AED 10,000 penalty is automatically removed or credited.

  3. No need to appeal—the waiver is automatic.

  4. If already paid, request to refund or credit in EmaraTax.

  5. Monitor corporate filings moving forward to avoid other penalties.

Final Word

If your company missed Corporate Tax registration deadlines, CTP006 offers a clear path to avoid or reclaim the AED 10,000 penalty—but only with timely action. File within 7 months, and the penalty will be automatically waived. No waiver request needed; EmaraTax handles it. To be sure your submission meets all conditions and gets processed correctly, consider working with a certified UAE tax advisor.

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