UAE companies that were fined for missing their corporate tax registration deadlines are now beginning to see those penalties refunded directly into their tax accounts.
The Federal Tax Authority (FTA) had announced in May that the Dh10,000 late registration penalty would be waived or refunded, provided businesses file their corporate tax returns within seven months from the end of their first tax period.
For those who already paid the fine, the amount is being credited back to their EmaraTax accounts. If the penalty was issued but unpaid, it is being automatically removed from the system.
“This refund comes as a welcome relief, especially for SMEs where every dirham matters,” said Sumayya Zain, CEO of Hallmark International Auditors. “Our clients have started seeing the refunds reflected in their tax accounts.”
To qualify, businesses must ensure they submit their tax return within the specified seven-month window. For example, companies with a tax year from January 1 to December 31, 2024, must file by July 31, 2025, to benefit from the waiver.
The policy also covers companies whose financial years began earlier—such as those starting on July 1, 2023—as long as they meet the 7-month filing deadline.
All filings, payments, and refunds are processed through the FTA’s EmaraTax platform, which remains the central portal for corporate tax administration in the UAE.
With the FTA’s move easing pressure on businesses, tax consultants report a surge in registration and return submissions following the May update.
