FTA’s Penalty Waiver Scheme for Corporate Tax in UAE
Have you heard about the FTA’s Penalty Waiver Scheme for Corporate Tax in UAE? FTA’s Penalty Waiver Scheme for Corporate Tax in UAE is a special relief program by the Federal Tax Authority. It helps businesses avoid extra costs by waiving or reducing penalties. Many business owners ask if they can use this scheme for their own benefit. If you want to keep your business safe and save money, you should understand how the FTA’s Penalty Waiver Scheme for Corporate Tax in UAE works.
Who Can Benefit and How to Qualify
H3: Who is Eligible for FTA’s Penalty Waiver Scheme?
Many companies can get help from the FTA’s Penalty Waiver Scheme for Corporate Tax in UAE. The scheme covers firms registered under UAE corporate tax law. You need to check if your business meets the requirements set by the Federal Tax Authority.
To qualify for the waiver:
- The company must file all required tax returns before the deadline.
- The company must pay all pending taxes or agree to a payment plan.
- The company must correct all mistakes in past tax filings.
Some businesses get confused about the exact documents they need. You should prepare copies of your trade license, old tax returns, and proof of payments.
H3: Steps to Apply for the Penalty Waiver
First, you should log in to the FTA portal with your company’s details. Next, you select the Penalty Waiver Scheme option from the menu. Fill out the application form with all your tax and business information.
You need to upload:
- All required documents
- Letters explaining reasons for late filing or payment
- Evidence for any financial hardships
Once you submit the application, the FTA will review your case. If they need more information, you must reply quickly to their requests.
H3: Common Reasons for Penalty Waivers
Many companies get waivers due to genuine errors or financial troubles. Some common reasons are listed below:
- Mistakes in understanding new tax rules
- Technical problems with the FTA portal
- Cash flow issues after the COVID-19 pandemic
If your company faces one of these problems, you should clearly mention it in your application. Honest and complete information increases your chance of success.
Data Table: Example of Penalties and Waiver Outcomes
| Reason for Penalty | Normal Penalty (AED) | With Waiver (AED) | Reduction (%) |
|---|---|---|---|
| Late Tax Filing | 1,000 | 500 | 50% |
| Wrong Tax Return | 2,500 | 1,250 | 50% |
| Late Payment | 1,500 | 0 | 100% |
| Missing Document | 500 | 250 | 50% |
What Can Help: Support from Mubarak Al Ketbi Chartered Accountants
Mubarak Al Ketbi Chartered Accountants always helps clients with the FTA’s Penalty Waiver Scheme for Corporate Tax in UAE. Our team guides you through every step, so you won’t feel lost in the process. We’ve helped many companies get waivers and reduce penalties.
- We review your tax history with care.
- We prepare all your documents for you.
- We talk to the FTA and answer all their questions.
If you let us handle your penalty waiver, you can focus on growing your business. So act early to fix tax issues. For more information, visit our office “Saraya Avenue Building – Office M-06, Block/A, Al Garhoud, Dubai – UAE” or contact/WhatsApp on this number +971 50 276 2132.
