The AED 10,000 Corporate Tax late-registration penalty — and how the waiver works

The Federal Tax Authority charges an administrative penalty of AED 10,000 to any taxable person who registers for Corporate Tax after the deadline that applied to them. Deadlines were set by the month the trade licence was issued, and many companies — especially newer free zone entities and those with no accountant — missed them.

The waiver

In 2025 the Ministry of Finance and the FTA introduced a waiver: the late-registration penalty is waived (or refunded, if already paid) where the taxable person files its first Corporate Tax return, or annual declaration for exempt persons, within seven months of the end of its first tax period — rather than the usual nine.

For a company whose first tax period ended 31 December 2025, the waiver window closed on 31 July 2026. Companies with a later first tax period — for example a 31 March 2026 year end — have until 31 October 2026, and those with a 30 June 2026 year end until 31 January 2027.

What to do now

• Not registered yet? Register immediately. The penalty is fixed; it does not grow with further delay, but the filing clock is already running.
• Registered late but still inside the seven-month window? File the return early and the penalty falls away automatically.
• Missed the seven-month window? The penalty stands, but a penalty reconsideration request can be made where there was a genuine reason for the delay, within 40 business days of the penalty notice.

Deregistration deadlines carry penalties too

A company that closes, or whose licence is cancelled, must apply to deregister for Corporate Tax within three months. Failure to do so attracts a penalty of AED 1,000 a month, capped at AED 10,000, so a dormant company should be tidied up rather than left.

Our add-on fees cover Corporate Tax registration at AED 299 (free with All-in-One), deregistration at AED 999 and reconsideration requests from AED 1,499.