First Year Late Tax Penalties Waived Off: Investment Bloom in the UAE – A Major Hub!
April 30, 2025
MBG Experts can help you capitalize on this penalty wavier process
In a proactive move to support the business community, the UAE Ministry of Finance and Federal Tax Authority (FTA) have announced (as per media reports) a penalty waiver initiative for businesses and exempt entities that missed their Corporate Tax registration deadlines. This one-time first year waiver is designed to encourage better compliance during the initial phase of Corporate Tax implementation in the UAE.
To qualify for this waiver, eligible parties must file their tax return or annual statements within a period not exceeding seven (7) months from the end of their first tax period as stipulated under the Corporate Tax.At MBG Corporate Services, we view this business friendly development as a timely opportunity for businesses of all kinds. This is a well appreciated initiative taken by the government to ease the transition of businesses into the Corporate Tax regime which was officially rolled out in June 1, 2023.
Since, this is a temporary relief and it is expected that FTA will incorporate the penalties back, this is the right break through for businesses to not only avoid penalties and ensure full compliance going forward but also recover fines already paid. All you need is to consult our experts for assistance every step of the way and we have you covered.
What the Penalty Waiver Means for Your Business ?
- Act fast without any further delay, if you have missed the Corporate Income Tax UAE registration deadline and you still can avoid the hefty penalties.
- Businesses must file their Corporate Tax returns or annual statements within seven months from the end of their first tax period to qualify.
- To qualify for the waiver, you must file your Corporate Tax returns or annual statements within seven months from the end of your first tax period.
- All businesses which meet the eligibility criteria, as confirmed by FTA, will be awarded with refund of fines already paid.
Our Service Process
As one of the UAE’s leading corporate tax and compliance advisors, we provide end-to-end Corporate Income Tax solutions, ensuring your business stays protected and ahead of regulatory requirements.
Our Services Include:
✔️ CT Registration Support – Timely and accurate submission aligned with FTA standards.
✔️ Corporate Tax Return Filing – Comprehensive filing services within the statutory timelines.
✔️ Penalty Review & Refund Support – We assess your eligibility and support refund claims for any business tax penalties already paid.
✔️ Exemption Advisory – Guidance for qualifying entities under exemption rules.
✔️ Ongoing Compliance & Planning – Strategic tax structuring to optimize your tax position.
Why MBG Corporate Services?
👥 600+ Professionals and experts employed full-time
🌐 3,000+ Clients globally
🏢 100+ Fortune 500 Clients served
📍 15 offices in 8 countries
This Opportunity is for a limited time, Act now to reap the most
This waiver is a sigh of relief for sure, but is time-limited aimed at encouraging early and voluntary compliance. Acting now means you not only avoid costly fines but also start your Corporate Tax journey on a strong, compliant footing—with MBG as your trusted partner.
Register, file, and take full advantage of the UAE’s first-year penalty waiver initiative.
Reach out to MBG Corporate Services today to make the most of this unique development.
