Old company never registered for Corporate Tax
My company has a licence from 2022 and never registered for Corporate Tax. What happens now?
The situation
Companies licensed before 1 March 2024 had registration deadlines during 2024 based on their licence issue month. If you missed it, the AED 10,000 late registration penalty applies unless the waiver conditions are met.
The law
- Art 51, Federal Decree-Law 47 of 2022: Taxable persons must register in the form and timeline the FTA sets
- Cabinet Decision 75 of 2023 as amended by Cabinet Decision 10 of 2024: AED 10,000 late registration penalty
What it means for you
Register now. The FTA waiver cancels or refunds the penalty if the first return or annual declaration is filed within 7 months of the end of the first tax period. Example: with a calendar year and a first tax period of 2024, the return needed to be filed by 31 July 2025. If you missed that, the penalty usually stands, and you must also file all overdue returns, which carry late filing penalties of AED 500 a month for the first 12 months.
What to do
- Register on EmaraTax today.
- Work out your first tax period.
- Prepare and file all overdue returns.
- Pay or contest penalties with proper grounds.
Overdue returns add late filing penalties on top of the registration penalty.
We can do this for youCorporate Tax registration on EmaraTax for companies, free zone entities, non-residents and individuals in business: AED 2,250