This Grace Period Has Ended
The FTA’s grace period covered in this article ran from 1 January 2024 to 31 March 2025 and is no longer active. It is kept here as reference for understanding what it covered and why penalties from that window were reversed. If you’re looking for current corporate tax registration deadlines and penalties, see the sections below.
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What the Grace Period Was
On 4 February 2025, the Federal Tax Authority called on registrants across all UAE tax types (Corporate Tax, VAT, and Excise Tax) to update their registration records before 31 March 2025 without incurring administrative penalties. The grace period itself had been running since 1 January 2024, giving businesses over a year to bring their FTA records current.
Under Cabinet Decision No. 74 of 2023, registrants are required to notify the FTA within 20 business days of any change to the data held on their file, including changes to trade name, business address, email address, licensed activities, and legal entity type. Businesses that had let this notification obligation slip, often years’ worth of unreported address or activity changes, could correct their records during the grace period without triggering the standard administrative penalty for late notification.
The FTA also automatically reversed penalties already issued for late updates made between 1 January 2024 and the point the grace period took effect, with no separate application required from the taxpayer.
The Outcome
The initiative closed on 31 March 2025. The FTA reported strong uptake, with a large share of registrants across all tax types using the window to correct outdated records before the deadline. Since then, the 20-business-day notification requirement under Cabinet Decision No. 74 of 2023 has remained the standard rule, with no penalty relief currently attached to it. If your FTA registration details have changed since March 2025 and haven’t been reported, standard administrative penalties for late notification now apply, this specific waiver is not available again.
What’s Relevant Now: Current Registration Deadlines and Penalties
Separately from the closed update-your-details grace period above, a different and still-active FTA initiative affects late Corporate Tax registration specifically. Businesses that missed their registration deadline can still avoid the standard AED 10,000 late registration penalty if they submit their first Corporate Tax return, or first Annual Declaration, within seven months of the end of their first tax period, rather than the standard nine months. This is a separate mechanism from the 2024-2025 grace period covered above and remains in effect as of this writing.
| Compliance Point | Current Rule |
|---|---|
| Late Corporate Tax registration penalty | AED 10,000 |
| Registration penalty waiver condition | File first Tax Return/Annual Declaration within 7 months of first tax period end |
| Ongoing FTA data update requirement | Notify within 20 business days of any change (Cabinet Decision No. 74 of 2023), no penalty relief currently attached |
| Late payment interest | 14% per annum, accrued monthly on outstanding tax |
For the full current registration timeline, including how deadlines are set relative to your trade license issue date, see our guide to the corporate tax timeline for UAE businesses.
Required Action
If you’re unsure whether your FTA registration details are current, check now rather than waiting for another grace period, none is currently scheduled. If you’ve missed your Corporate Tax registration deadline entirely, act within the seven-month window from your first tax period’s end to preserve eligibility for the penalty waiver described above.
Frequently Asked Questions
Is the March 2025 grace period still available?
No. It closed on 31 March 2025. There is no current penalty waiver for late notification of changes to FTA registration data.
What happens if I update my registration details late now?
Standard administrative penalties apply for failing to notify the FTA within 20 business days of a change, as set out under Cabinet Decision No. 74 of 2023.
Is the late registration penalty waiver for Corporate Tax the same as the 2024-2025 grace period?
No. They are separate initiatives. The 2024-2025 grace period covered updating existing registration data. The registration penalty waiver is a distinct, ongoing mechanism tied to filing your first Corporate Tax return within seven months of your first tax period’s end.
Where can I find current Corporate Tax registration deadlines?
See our guide to the corporate tax timeline for UAE businesses for deadlines based on your license issue date and tax period.
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How Tax Consultant Dubai Can Help
We help businesses confirm their FTA registration status, correct outdated records, and manage Corporate Tax registration and filing to avoid avoidable penalties.
Contact Tax Consultant Dubai today to check your current registration status and compliance position.
