Corporate Tax: Final 30 Days to Avoid a Dh10,000 Fine

27 Jun

If your business missed the deadline to register for UAE Corporate Tax, the clock is ticking—and fast. The Federal Tax Authority (FTA) has issued a firm reminder: late registrants now have just over 30 days to file their first tax return and secure a waiver on the Dh10,000 penalty.

What You Need to Know

The corporate tax framework officially came into effect this year, and businesses operating on a January–December financial year are now in a critical compliance window.

If your business failed to register for Corporate Tax on time, the FTA is offering a penalty waiver—but only if your return for the 2024 financial period is filed by the end of July 2025.

Key Dates:

End-July 2025: Deadline for late-registered businesses to file their 2024 corporate tax return and avoid the Dh10,000 fine.
End-September 2025: Standard deadline for businesses that registered on time (with a Jan–Dec fiscal year).
End-October 2025: Deadline for businesses with an April–March financial year.

This shortened filing window—7 months instead of the standard 9—is part of the FTA’s strategy to streamline compliance and encourage businesses to catch up on registration.

Why Many Businesses Missed the Deadline

According to industry experts, many SMEs mistakenly believed corporate tax registration was tied to VAT thresholds. But here’s the key difference:

💡 Corporate Tax registration is mandatory for all businesses—even if you have zero revenue.
Suzy Kerton, Founder & CEO of Zyla Accountants, explains:
“We’ve seen smaller businesses mistakenly assume that corporate tax registration only applies if they’re earning above a certain threshold, much like VAT. That’s simply not the case. Corporate tax registration is mandatory, regardless of revenue or profit. Even if your business hasn’t made a single dirham in sales, you still need to register.”

FTA Steps Up Awareness Efforts

To bridge the gap in understanding, the FTA has launched a series of educational workshops across the UAE. The most recent event, held in Ras Al Khaimah, focused on how to calculate taxable income and highlighted the conditions under which the Dh10,000 penalty could be waived.

Their message is clear: submit your return within 7 months of your first tax period to be eligible for relief.

What You Should Do Now

With just weeks remaining, now is the time to act. Zyla Accountants can help you:

Complete your corporate tax filing before the July 31 cut-off
Navigate compliance requirements efficiently
Avoid costly penalties through proper documentation and guidance

Need Help With Your Tax Filing?
Reach out to our tax advisors at Zyla Accountants in Dubai. We specialise in UAE Corporate Tax compliance and are here to make sure you file correctly—and on time.

Corporate Tax

Ian Hughes