The UAE Ministry of Finance and the Federal Tax Authority have announced a waiver of penalties for companies that did not register for corporate tax within the legally required timeframes. To benefit from this exemption, organizations must submit a tax return or annual financial statement within 7 months of the end of their first tax period. Companies that have already paid a penalty will be refunded if all conditions are met.
This waiver by UAE authorities also applies to entities exempt from corporate tax that failed to submit documentation to the Federal Tax Authority in time.
Aimed at supporting businesses, the goal of these new measures are to reduce financial burden on companies and ease the transition to the new corporate tax system. It is worth adding that corporate tax was introduced in the UAE in June 2023, with a rate ranging from 0% to 9%.