BREAKING NEWS: UAE Offers Corporate Tax Penalty Relief – But You Must Act Fast to Qualify

Amie Roberts • May 1, 2025

BIG NEWS for UAE Business Owners!

If you’ve missed your Corporate Tax registration deadline or already paid the AED 10,000 fine, there’s now a golden opportunity to waive or reclaim that penalty — but only if you act quickly.

In a recent move to support businesses during the first year of the UAE’s Corporate Tax rollout, the Federal Tax Authority (FTA) has announced a limited-time grace period. The initiative allows eligible businesses to apply for a full penalty waiver if they file their Corporate Tax return early.

This is a major relief for thousands of companies who have either:
  • Missed their Corporate Tax registration deadline, or
  • Registered late and were hit with the AED 10,000 fine
Why is this happening?
This initiative is part of a broader effort by the Ministry of Finance and the FTA to ease the transition into the new Corporate Tax system and promote long-term compliance.

What You Need to Know:
  • Deadline for the waiver: July 31, 2025
  • BUT: You must file your return well ahead of your official tax deadline to qualify.
  • Don’t wait – gathering your financial records and preparing your tax return can take time.
  • For most businesses operating on a calendar year basis (Jan–Dec), that means filing within the next couple of months.
Who qualifies for the penalty waiver?
If you’re asking:

“Can I get a refund on my Corporate Tax late registration fine in the UAE?”

“Is it possible to waive the AED 10,000 Corporate Tax penalty?”

“How do I apply for the UAE Corporate Tax penalty relief?”

Then the answer is – yes, you may be eligible. But there’s a catch: you must file your tax return early, ahead of your normal deadline. This is not automatic, and if you miss the window, the fine will not be waived or refunded.

Why early filing matters:

The FTA has made it clear: early compliance is the only route to relief. This means:
  • Completing your Corporate Tax registration (if not already done)
  • Preparing your financials for your first tax year
  • Submitting your Corporate Tax return well before the deadline
This one-time waiver won’t be repeated – so don’t leave it until the last minute.

How Mosaic Chambers Group can help:

At Mosaic Chambers Group, our FTA-certified tax advisors and consultants are ready to guide you through the entire process. Whether you need advice on:
  • Understanding your eligibility
  • Filing your Corporate Tax return early
  • Claiming your AED 10,000 fine refund
  • Or ensuring future tax compliance
We’re here to take the stress out of Corporate Tax.

Book a free consultation today and get expert support from our team. Click here to get in touch or below to book your call.

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