Good news for businesses across the UAE. The Federal Tax Authority (FTA) has announced a new initiative to waive administrative penalties for late corporate tax registration—giving SMEs a valuable second chance to get compliant without extra cost.
If your business missed the deadline, here’s your chance to fix it.
In this post, we’ll explain:
- What the FTA’s initiative means
- Who qualifies (with real-world examples)
- How Pemo helps you stay ahead of tax deadlines and financial admin
Let’s break it down.
What’s the FTA’s corporate tax penalty waiver about?
If your business was late to register for corporate tax, you may have received a penalty. But this initiative offers a way out—if you act quickly.
To qualify for the waiver:
- Taxable entities must submit their tax return within 7 months of the end of their first tax period.
- Exempt entities must submit an annual declaration within the same timeframe.
Didn’t register yet? You’re still eligible—just make sure to complete your registration and submit the required documents before the 7-month deadline.
All of this can be done through the EmaraTax platform.
Who is this for? (And when the waiver applies)
Whether you've registered late, paid a penalty, or haven't even started the process—this initiative might have you covered. Here's a quick look at the different scenarios where the FTA's waiver applies:
✅ Scenario 1: Registered late, penalty issued, not paid yet
If you submit your return or declaration within 7 months, the penalty is automatically waived.
✅ Scenario 2: Registered late, penalty issued, return not submitted yet
Submit your tax return or declaration within the 7-month window, and the penalty will be waived.
✅ Scenario 3: Registered late, penalty paid, return not submitted yet
Once you submit the return or declaration within the deadline, the paid penalty will be refunded to your tax account.
✅ Scenario 4: Registered late, penalty paid, return submitted on time
No extra steps needed—your penalty will be refunded automatically.
✅ Scenario 5: Haven’t registered yet
You can still benefit. Register and submit your return or declaration within 7 months of your first tax period, and the penalty will be waived—even if it’s already been issued.
Why this matters for SMEs
Staying on top of tax deadlines isn’t easy—especially when you’re managing approvals, expenses, and payroll across multiple teams. Add manual receipt handling and paper trails into the mix, and things can get overwhelming fast.
That’s where Pemo's expense management tool comes in.
With Pemo, you can:
- Track and categorize business expenses in real-time
- Export reports for tax filing in just a few clicks
- Keep documents organised and audit-ready
- Set reminders so nothing slips through the cracks
💡 138 hours are saved by admins every month using Pemo.
How Pemo keeps you compliant (Without the stress)
While we’re not tax advisors, Pemo is built to support SMEs in staying organised, proactive, and in control.
Here’s how:
- All-in-one dashboard: View company spending, team expenses, and upcoming approvals in one place.
- Smart notifications: Stay on top of month-end tasks and tax deadlines.
- Document management: Store receipts, invoices, and reports securely and access them any time.
With Pemo, you reduce errors, save time, and feel confident knowing your business is running smoothly—even during tax season.
Final thoughts
The FTA’s waiver initiative is a win for businesses—but only if you act on it. Filing late used to mean a guaranteed fine. Now, it’s a chance to reset.
If your financial admin needs a refresh, Pemo can help you stay ready for every deadline—with less effort, fewer headaches, and more peace of mind.
✅ Ready to simplify your expense and tax prep?
Book a demo or get started with Pemo today.
