UAE: 33,000 Beneficiaries of Late Tax Registration Penalty Exemption

 Exemption from Late Tax Registration Penalties in the UAE

UAE: 33,000 Beneficiaries of Late Tax Registration Penalty Exemption

The Federal Tax Authority in the UAE revealed that the number of beneficiaries of the "late registration penalty" exemption initiative for corporate tax has exceeded 33,000. Next Thursday is the deadline to benefit from the exemption initiative.

The Authority renewed its call for unregistered taxpayers to expedite their registration applications and then submit their tax returns via the Emirates Tax digital tax services platform for the first tax period. This will allow them to benefit from the exemption from the "late registration penalty" for corporate tax, for those subject to the tax, and for certain categories of tax-exempt individuals required to register with the Authority.

The Authority set next Thursday as the deadline to benefit from the initiative for the majority of those subject to corporate tax whose first tax period falls within the calendar year 2024. It urged all concerned to complete all application procedures, noting that exemptions will not be granted to those who exceed the specified deadline. It also warned of the imposition of a late registration penalty for corporate tax on non-registered individuals, amounting to AED 10,000.

The Authority stipulated that to be exempt from the "late registration penalty" for corporate tax, the taxable person or exempt person required to register must submit their tax return or annual declaration within a period not exceeding seven months from the end of the first tax period, or within the first fiscal year, instead of nine months. The Authority emphasized that the "late registration penalty" exemption initiative only applies to the first tax period of the taxable person or exempt person required to register.