The Ministry of Finance and the Federal Tax Authority (FTA) have launched a new initiative under the UAE Corporate Tax Initiative. The goal is to waive late corporate tax registration penalties. This initiative presents a timely opportunity for businesses to realign their compliance without additional financial pressure. Furthermore, it supports the UAE’s commitment to fostering a transparent and business-friendly tax environment. As a result, it encourages companies to maintain full and timely compliance.

Key Objectives of the Corporate Tax Relief Initiative

This initiative has been introduced to:

• Encourage voluntary compliance with the Corporate Tax Law

• Reduce administrative and financial burdens on businesses

• Promote timely submission of tax returns and annual declarations

• Strengthen the UAE’s global competitiveness

Therefore, businesses should take full advantage of this opportunity. It will help ensure compliance and avoid penalties.

How Businesses Can Benefit from the Tax Initiative

To take advantage of the penalty waiver, businesses must:

• Be a corporate taxpayer or an exempt person required to register with the FTA

• Submit the tax return or annual declaration within seven months of the end of their first tax period

• Ensure full compliance with the provisions of the Corporate Tax Law

It’s important to highlight that this initiative offers a chance to correct previous delays. Compliance can be ensured moving forward.

Parker Russell UAE’s Role in Supporting Corporate Tax Compliance

Parker Russell UAE, as an FTA-registered Tax Agency, actively supports companies across sectors to navigate the evolving tax landscape. In addition, we offer the following services:

• Corporate Tax Registration: Whether you’re a taxable entity or an exempt person, we handle your registration with the FTA.

• Comprehensive Corporate Tax Review: We assess your current registration and reporting status to ensure you meet the initiative’s conditions.

• Timely Tax Return Submission: We prepare and file your first corporate tax return in full compliance with FTA requirements.

• Advisory for Exempt and Free Zone Entities: We provide tailored advice on classification, obligations, and potential risks.

• FTA Representation: We act on your behalf to resolve registration-related matters, submissions, and clarifications.

Our team ensures that all aspects of your tax compliance are handled efficiently, giving you peace of mind.

Maximize Your Benefits: How to Avoid Penalties and Stay Compliant

Finally, this initiative offers a limited-time opportunity to get your corporate tax compliance on track. This could mean reduced or waived penalties. Even if your business has already registered, it’s crucial to take the right next steps. Therefore, it is recommended that you review your compliance status promptly.

To take full advantage of this initiative, contact Parker Russell UAE today to review your compliance status while the opportunity is still available.