The UAE authorities declared their decision to eliminate late registration penalties for corporate taxpayers.
The Cabinet released an announcement through the Federal Tax Authority (FTA) together with the Ministry of Finance (MoF) to exempt corporate tax-paying entities and persons required to register with the FTA from administrative fines due to delays in submitting their tax registration applications within the specified deadline.
This exemption applies as long as these categories file their tax returns or annual declaration within seven months from their first tax period according to Corporate Tax Law provisions.
This decision enhances adherence to tax regulations and inspire registered persons to file their tax returns early for annual examinations and strengthen their prompt adherence to legislative standards.
Moreover, the FTA has already set up proper procedures to waive the administrative penalties levied on qualified people.
The aim of this project is to improve the nation’s tax compliance system and make the procedures easier while lowering the financial pressure on businesses or companies. This goal can be achieved by helping taxpayers easily perform their responsibilities and giving them the chance to get exemptions if they file their tax returns and yearly statements before the due dates.
This initiative is also included in the nation’s effort to make compliance easier during the initial year of corporate tax rollout. This shows how much the government is committed to supporting local businesses and projects. They are offering rewards/incentives that promote voluntary compliance and decrease the paperwork and financial challenges linked to tax registration. This also plays a big role in improving the country’s rank in different competitiveness measures throughout the world.
Also Read: Corporate Tax Frequently Asked Questions
