The Federal Tax Authority (FTA) has issued a firm directive to businesses in the UAE. Companies that missed the original deadline for filing corporate tax must now file their 2024 corporate tax return by 31st July, 2025, to avoid a fine of Dh 10,000 as an administrative penalty.
This grace period is applicable only to late registrants, which include companies that delayed registration but still come under the special waiver provision under the FTA. If these businesses submit their return within 7 months of their financial year-end, they may qualify for a full penalty waiver.
Most businesses that missed the original deadline must work with an established corporate tax planning consultant UAE to remain compliant.
In this edition, we have comprehensively discussed the directive to help businesses in the UAE.
Who Needs to File by 31st July?
Businesses with a January-December financial year that registered late for corporate tax will be affected, but now they can seek an exemption from the penalty. Only businesses that missed the registration deadline but registered under the waiver provisions must file within 7 months, rather than the usual 9-month window.
Financial Year | Filing Deadline (Standard) | Filing Deadline (Late Registrants) |
Jan – Dec | Sept 2025 | July 31, 2025 |
Apr – Mar | Oct 2025 | N/A |
The VAT vs. Corporate Tax Misunderstanding Resulting in Missed Deadlines
According to prominent experts, a key reason behind the widespread non-compliance is the confusion between VAT and corporate tax registration deadlines, particularly among SMEs.
Many business owners had the wrong impression that corporate tax registration would follow the same Dh 375,000 revenue threshold used for VAT registration. However, company owners must understand that the rules for corporate tax are notably different.
Registration for corporate tax is mandatory, regardless of revenue or profit. Even businesses with zero income are required to file for registration. As a result of this misconception, many SMEs delayed or skipped registration, which unintentionally puts them at risk of penalties.
If you’re not sure how to prepare your company’s UAE corporate tax documents or need professional guidance, consult a reputable advisor to ensure compliance in the UAE.
Avoid These 5 Costly Tax Filing Mistakes
Here’s how businesses in the UAE must prepare their corporate tax documents to avoid compliance mistakes.
- Finalize all financial statements and internal audits early.
- Separate business and personal transactions for accurate reporting.
- Validate your Tax Registration Number (TRN) before submission.
- Ensure all deductible expenses comply with FTA guidelines.
- Keep comprehensive documentation, the FTA may request detailed reports.
Need Expert Help with Filing?
With less than a month remaining, now is the time to act. For businesses, filing tax returns by 31st July is the only way to secure the penalty waiver in case they registered late.
SMEs can reach out to the IMC Group, an experienced corporate tax planning consultant UAE, for dedicated support and ensure compliance under the new tax regime. With seasoned tax experts providing personalized guidance, companies can ensure timely tax filing and get support with the documentation.
Professional teams offer full support in preparing financial documents for audits. With experienced consultants on the side, businesses in the UAE can benefit from strategic tax planning for FY 2025 and beyond.
IMC Group