DUBAI: The UAE Federal Tax Authority (FTA) has announced that companies and individuals who missed the corporate tax registration deadline will not face administrative penalties. Furthermore, those who had already been fined for delays can expect refunds—pending the release of refund procedures.

This refund could be available for adjustment against the company’s corporate tax liability, mentioned Girish Chand, Senior Partner at MCA Management Consultancy, adding that such reversals may happen automatically, based on previous experiences.

The move is especially significant for solo entrepreneurs, freelancers, and small entities that may have missed the March deadline to register. Market experts believe the measure offers crucial support for this segment of the business community.

The Ministry of Finance (MoF) clarified that to be eligible for the penalty waiver, businesses must file their corporate tax return or annual statements within seven months from the end of their first tax period. This is aimed at encouraging early compliance.

Meanwhile, tax professionals suggest that impacted businesses should update their bank details on the Emaratax portal to ensure smooth refunds.

Over the past months, the FTA has actively guided businesses—across the mainland, free zones, and among freelancers—through the corporate tax registration process via the Emaratax portal, issuing repeated reminders.