The Ministry of Finance (MoF) and the Federal Tax Authority (FTA) of the UAE have initiated a new initiative aimed at alleviating the penalties associated with late registration under the Corporate Tax Law. This underscores the UAE’s dedication to cultivating a conducive business environment while lightening the administrative and financial load on businesses and exempt entities.
Failure to register for corporate tax in the UAE on time may result in an administrative penalty of AED 10,000. However, following the announcement of the Ministry of Finance on April 29, 2025, penalties will be waived for eligible entities.