Meydan Freezone 
IFZA
Freezone 
DMCC
Freezone
DCC
Freezone 
JAFZA
Freezone 
DUQE
Freezone 
SPC
Freezone 
SHAMS Freezone
SRTIP Freezone
Rakez Freezone
DAO
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Ajman Freezone
UAQ
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MASDAR Freezone
Grace Period for Updating Corporate Tax Registration Information
The United Arab Emirates’ Federal Tax Authority (FTA) has introduced a special grace period to help businesses ensure their tax information is accurate and up to date, without facing additional penalties. This temporary measure aims to support companies in meeting their tax responsibilities smoothly and efficiently.
What Is the Grace Period?
From January 1, 2024, until March 31, 2025, businesses that have not updated their tax registration details can do so without being charged administrative fines. This window gives companies ample time to review their records and correct any outdated information.
Who Does This Affect?
All businesses registered with the FTA are expected to keep their tax information current. If a company has changed its name, address, email, business activity, legal structure, or any other registered details, it must inform the FTA within 20 working days. During the grace period, if these updates are made late—but before March 31, 2025—no penalties will be imposed.
Is this grace period applicable for Corporate Tax Registration?
Based on the information provided by the Federal Tax Authority (FTA), the grace period primarily applies to taxpayers who are already registered and need to update their existing tax information. The initiative allows these registered taxpayers to correct their details without facing administrative penalties during the specified timeframe.
If you have not registered for corporate tax at all and are required to do so, it’s important to complete your initial registration in accordance with the standard guidelines and deadlines set out by the FTA. The current grace period does not appear to provide exemptions or penalty waivers for those who have not fulfilled their initial registration obligations. For specific guidance on your situation, it’s best to consult the FTA’s official resources or seek assistance from a qualified tax professional.
Refund of Penalties Already Paid
For businesses that have already been penalized for late updates to their tax records between January 1, 2024 and March 31, 2025—and have paid those penalties—this new decision offers a potential refund. The refund process will follow the guidelines set out in Cabinet Decision No. (105) of 2021, which covers how penalties can be paid in installments, waived, or refunded.
Why This Matters?
According to the FTA, this initiative aims to create a more transparent and business-friendly tax environment. By giving companies extra time to fix their records and avoiding immediate penalties, the FTA hopes to encourage better compliance with tax laws and reduce the financial burden on businesses. This approach supports the UAE’s goal of maintaining a competitive, growth-focused economy. By taking advantage of this grace period, companies can ensure their tax records are accurate and up to date, ultimately promoting a healthier business landscape in the UAE.
Get Help with UAE Corporate Tax!
Keeping track of the latest tax regulations and ensuring all updates are made correctly can be challenging. For assistance in verifying and updating your tax details, as well as filing your corporate tax return, consider reaching out to filings.ae and using LEDGERS.Cloud.
FAQs
What is the timeframe for the grace period?
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The grace period runs from January 1, 2024, until March 31, 2025. During this time, businesses can update their tax details without incurring administrative penalties.
Does this grace period also apply to corporate tax registration updates?
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Yes. The grace period applies to all forms of tax registration updates, including corporate tax.
What kind of information must be updated within 20 working days?
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Any changes to the company’s name, address, email, business activities, legal form, or partnership details must be reported to the FTA using the approved procedures within 20 working days of the change.
What if I have already paid penalties for not updating my tax details on time?
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If you paid such penalties between January 1, 2024, and March 31, 2025, you may be eligible for a refund. The refund process will follow the guidelines set by Cabinet Decision No. (105) of 2021.
How do I update my tax registration details?
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Updates can be made through the FTA’s official online portal. Ensure that you have all the required documents and use the approved forms and processes outlined by the FTA.
Is the grace period automatic, or do I need to apply for it?
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The grace period is automatically in effect for all businesses registered with the FTA. If you make the required updates before March 31, 2025, you will not incur any penalties.
Does the grace period affect other tax-related obligations, such as filing returns or paying dues on time?
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The grace period specifically relates to the updating of tax registration information. Other tax obligations, such as filing returns and paying taxes on time, remain unaffected and must be met as per the standard deadlines.
What happens if I fail to update my tax details within the grace period?
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If you do not update your information by March 31, 2025, any future delays in providing the required updates could result in administrative penalties, as per normal FTA regulations.
Can I still be penalized if I provide incorrect or incomplete information during the grace period?
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The grace period waives penalties for late updates, not for inaccuracies. Ensure that all information you provide is correct and complete to avoid future penalties.
Where can I get professional help to ensure compliance?
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For expert guidance, consider contacting filings.ae. Their team can assist with verifying and updating your tax details and filing your corporate tax returns, ensuring full compliance with FTA requirements.
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Author: RENU SURESH Renu Suresh is a proficient writer with a knack for turning intricate legal concepts into clear, actionable advice. Her articles empower entrepreneurs by providing the knowledge they need to navigate the complexities of business laws, ensuring they can start and manage their businesses effectively. Updated on: December 20th, 2024