Thousands of UAE businesses registered for Corporate Tax after their deadline and were issued a fixed AED 10,000 penalty. The FTA's relief initiative removes that penalty — and refunds it if already paid — but only where the first Corporate Tax return or annual declaration is filed within 7 months from the end of the first tax period, two months earlier than the normal filing deadline.
What the waiver covers
It does not cover late VAT registration penalties, late filing penalties of AED 500/AED 1,000 per month, or 14% per annum unpaid tax charges. Those follow their own rules and, where wrong, require a reconsideration.
- The fixed AED 10,000 penalty for late Corporate Tax registration
- Taxable persons filing a first CT return, and exempt persons filing a first annual declaration
- Penalties already paid — credited on EmaraTax and refundable
The 7-month rule, not the 9-month rule
Your statutory filing deadline is 9 months after your first tax period ends. The waiver window closes at 7 months. That means a business filing in month 8 remains compliant but loses AED 10,000 of relief for the sake of a few weeks.
- First tax period ends 31 December 2024 → waiver deadline 31 July 2025 (filing deadline 30 Sept 2025)
- First tax period ends 31 December 2025 → waiver deadline 31 July 2026 (filing deadline 30 Sept 2026)
- First tax period ends 30 June 2026 → waiver deadline 31 January 2027 (filing deadline 31 March 2027)
Check your own date and the days remaining with the free calculator at /calculators/penalty-waiver-deadline.
How to claim it, step by step
No separate waiver application is needed for this initiative — the relief follows from filing on time. Keep the acknowledgement as evidence and raise a clarification if the credit does not appear on the account.
- Complete Corporate Tax registration on EmaraTax and obtain the TRN
- Close the books for the entire first tax period
- Prepare the CT computation, including any Small Business Relief election
- File the first return on EmaraTax inside the 7-month window
- Download the acknowledgement and screenshot the penalty balance
- Where the penalty was already paid, request the refund of the credited amount
If you have already missed the window
The AED 10,000 stands, but there are still routes: a Request for Reconsideration filed in Arabic within 40 business days of the penalty decision, or an instalment/reduction request on hardship grounds under Cabinet Decision 105 of 2021. Either way, file the outstanding return immediately — monthly late filing penalties continue to accrue while the dispute runs.
Why filing early costs you nothing
Filing at month 6 or 7 rather than month 9 does not change your taxable income, your tax payable or your ability to elect Small Business Relief. It simply secures the waiver and removes the risk of a last-week EmaraTax problem turning into penalties.
File before the window closes and keep the AED 10,000
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Frequently asked questions
Quick answers to common UAE corporate tax questions.
This article is for general guidance only and reflects FTA rules as of September 2026. Always confirm your specific position with a qualified UAE tax advisor.