Federal Tax Authority Announces One-Time Penalty Waiver for Late Corporate Tax Registration

Federal Tax Authority - Waiver of Penalties

We would like to inform you of a significant update from the Ministry of Finance and the Federal Tax Authority (“FTA”) regarding corporate tax registration requirements. 

To support businesses during the transition to the new corporate tax regime, the FTA has introduced a one-time penalty waiver initiative for entities that missed the initial deadline to register for corporate tax. 

Key Highlights: 

• The waiver applies to businesses that failed to submit their corporate tax registration applications on time. 

• To qualify, taxpayers must file either their corporate tax return or annual declaration within seven months from the end of their first tax period or financial year. 

• Previously paid penalties may be refunded, provided certain conditions are met. 

This initiative was officially announced by the FTA on 28 April 2025. 

We strongly encourage all impacted entities to act promptly and ensure timely filing to take full advantage of this opportunity. 

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