The Federal Tax Authority (FTA) has rolled out a major relief measure for businesses in the UAE. As of July 2025, companies that failed to register for Corporate Tax on time now have a chance to avoid or recover the AED 10,000 late registration penalty—if they act fast.
This move comes as part of the FTA’s initiative to support smoother compliance in the early stages of the UAE’s Corporate Tax regime. Here’s what every business owner needs to know.
What’s the Latest Corporate Tax Update?
If your company missed the Corporate Tax registration deadline earlier this year—or even paid the AED 10,000 fine—you now have a second chance. The FTA announced that if businesses submit their first Corporate Tax return or declaration within seven months from the end of their first financial year, the penalty will be waived or refunded.
For companies whose financial year ends on 31 December 2024, this means the new deadline to file is 31 July 2025.
Who Is Eligible for the Penalty Waiver?
This applies to a wide range of businesses, including:
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Mainland LLCs
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Free zone companies
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Non-resident entities with a permanent establishment in the UAE
Even if the AED 10,000 fine has already been paid, the FTA confirms that eligible companies can receive a refund, provided they file their Corporate Tax return on time.
Why This Waiver Matters
This isn’t just a small administrative change—it’s a big opportunity for businesses to avoid unnecessary costs and start fresh.
✅ Direct Financial Relief
Avoiding or reclaiming AED 10,000 can make a noticeable difference, especially for startups and small businesses.
✅ Encouragement to Comply
By rewarding timely filing, the FTA is encouraging businesses to stay on top of their obligations without fear of immediate penalties.
✅ Simplified Transition
For many, Corporate Tax is new territory. This waiver acts as a grace period to adjust, prepare, and get things right from the start.
What You Need to Do Before 31 July 2025
If your financial year ended in December 2024, you must:
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Ensure you are registered on the EmaraTax platform.
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Prepare your Corporate Tax return or declaration, including complete and accurate financial records for the 2024 year.
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Submit the return by 31 July 2025.
If done correctly, your penalty will either not be applied—or if already paid, it will be refunded.
What Happens If You Miss the New Deadline?
If you don’t file by 31 July 2025 (or your own 7-month deadline based on financial year-end), the AED 10,000 penalty becomes permanent. There will be no further extensions or waivers. This is a one-time opportunity.
How Velmont Crest Can Help
At Velmont Crest, we don’t file returns—but we make sure your records are 100% ready for your tax agent or internal team. Our Corporate Tax assistance includes:
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Cleaning and structuring your financials
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Identifying red flags and missing entries
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Preparing you for a smooth EmaraTax filing
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Ensuring you meet FTA deadlines without stress
We keep your books clear, compliant, and confidently ready—so you never miss a critical date like this one.
Final Thoughts
The AED 10,000 Corporate Tax penalty waiver is not just a relief—it’s a rare second chance. Whether you missed the registration deadline or are just catching up, filing your return before 31 July 2025 could save you big.
Don’t let messy books or last-minute stress get in your way. Let Velmont Crest support your tax compliance process the right way.
📞 +971 54 794 9327
📧 info@velmontcrest.ae
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