FTA extends the AED 10,000 CT late-registration penalty waiver to 31 July 2026.
The UAE Federal Tax Authority has confirmed a further extension of the grace period for the AED 10,000 administrative penalty that applies where a taxable person fails to register for Corporate Tax within the deadline set by FTA Decision No. 3 of 2024.
What changed
FTA Decision No. 7 of 2025 originally set out the timetable by which Resident and Non-Resident Persons subject to UAE Corporate Tax had to submit a CT registration application. Failure to submit on time attracts an AED 10,000 fixed administrative penalty under Cabinet Decision No. 75 of 2023.
In a 2024 grace-period decision the FTA waived that penalty for taxable persons that filed both their CT registration application and their first Corporate Tax return within seven months of the end of their first tax period. That waiver has now been extended so that the deadline for filing the first return — the trigger for the waiver — falls on or before 31 July 2026 for affected taxable persons.
Who qualifies for the waiver
- Resident juridical persons whose first tax period ended on or before 31 December 2024 and who missed their original registration deadline under FTA Decision No. 3 of 2024.
- Natural persons subject to Corporate Tax whose first tax period ended on or before 31 December 2024.
- Non-Resident juridical persons with a UAE Permanent Establishment whose first tax period ended on or before 31 December 2024.
The waiver only operates if both the registration and the first CT return are submitted by the relevant deadline. A late registration without a corresponding timely first return does not benefit.
What new UAE entities should do now
Any UAE entity incorporated after 1 March 2024 is subject to UAE Corporate Tax and must register with the FTA. The registration deadline is now three months from the date of incorporation — significantly tighter than the original transitional deadlines. New entities should treat CT registration as a day-one task alongside trade-licence issuance and VAT registration.
ArxSetup files CT registration as part of every Operator and Private Office retainer. For Founder-retainer clients we file it as an add-on for USD 550 (single-shareholder entity, no group). See our accounting and tax services page.
Related
- UAE Corporate Tax explained — the 9% rate, QFZP, Small Business Relief, DMTT
- FTA — UAE Federal Tax Authority
- UAE Corporate Tax (glossary)
Prepared by ArxSetup's tax practice with affiliated FTA-registered tax-agent partners. This briefing is general guidance only — confirm position with a tax adviser before relying on it for your facts.