FTA’s Penalty Waiver Scheme for Corporate Tax in UAE: Who Can Benefit 🥇

FTA’s Penalty Waiver Scheme for Corporate Tax in UAE: Who Can Benefit 🥇

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 PenaltyNormal Penalty (AED)With Waiver (AED)Reduction (%)
Late Tax Filing1,00050050%
Wrong Tax Return2,5001,25050%
Late Payment1,5000100%
Missing Document50025050%

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.

FAQs on FTA’s Penalty Waiver Scheme for Corporate Tax in UAE

Who can claim a VAT refund for business visitors in the UAE?
Only foreign businesses with no place of establishment or business in the UAE and that pay VAT on expenses during their visit can claim.
What is the minimum VAT refund claim amount?
The minimum amount for a claim is AED 2,000 per application.
What documents do I need for the VAT refund application?
You need a Tax Compliance Certificate, valid invoices, proof of payment, passport copy, and signatory authorization.
What is the deadline to submit VAT refund claims?
You must submit your application by 31 August of the year after you incur the expense.
How can Mubarak Al Ketbi (MAK) Auditing help with VAT refunds?
Mubarak Al Ketbi (MAK) Auditing helps with every step, reviews your documents, submits claims, and gives advice on FTA updates.

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