TaxSavvyAE

Renewal while Corporate Tax registration is missing

I am renewing my licence and just realised I never registered for Corporate Tax. What now?

The situation

Licence renewal does not register you for Corporate Tax. The late registration penalty is AED 10,000, and the FTA has a waiver route tied to filing the first return early.

The law

  • Art 51, Federal Decree-Law 47 of 2022: Registration obligation for taxable persons
  • Cabinet Decision 10 of 2024 amending the Corporate Tax penalties decision: AED 10,000 penalty for late registration

What it means for you

Register now on EmaraTax. Under the FTA initiative, the late registration penalty for the first tax period is waived automatically, or credited back if paid, if you file the first return or declaration within 7 months of the end of that first tax period. Example: first tax period ended 31 December 2025, so the return had to be filed by 31 July 2026 for the waiver. If that date has passed, the penalty likely stands.

What to do

  1. Register for Corporate Tax today.
  2. Check the end date of your first tax period.
  3. If still within 7 months, file the first return quickly.
  4. If the window has passed, budget for the penalty and consider a reconsideration request only with real grounds.

The waiver applies only to the first tax period and only if the return is filed within 7 months.

We can do this for youTrade licence renewal for mainland and free zone companies: Ejari, UBO, audit and tax checks before renewal: AED 1,200

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