Facing a Corporate Tax Fine in the UAE? You Can Still Fix It Before 31 July 2025

Understanding Corporate Tax Penalties in the UAE

Corporate tax in the UAE became effective from June 2023, requiring all eligible businesses to register, file, and pay their tax obligations with the Federal Tax Authority (FTA).

Penalties are typically issued when a business:

• Fails to register for corporate tax on time
• Misses the deadline for submitting tax returns
• Delays payment of corporate tax dues
• Provides incorrect or incomplete information in tax filings

These penalties can be substantial and might impact your business cash flow and credibility.

The Importance of the 31 July 2025 Deadline

For companies with a financial year ending 31 December 2024, the official filing deadline for corporate tax returns is 30 September 2025. However, the FTA has set an earlier window—until 31 July 2025—for companies to file their returns to be considered for relief or a reduction in penalties.

Filing before this date is not just about ticking a box—it’s your last opportunity to show compliance and apply for penalty mitigation.

Can Penalties Be Reduced or Waived?

Yes. The UAE’s tax system allows businesses to request waivers or reductions of penalties under specific conditions. You must:

• 1. File your tax return before 31 July 2025
• 2. Settle any pending tax amounts promptly
• 3. Submit a valid explanation to the FTA for why the penalty occurred (e.g., new system adjustment, technical error, financial hardship)
• 4. Provide documentation supporting your request for relief

The earlier you act, the higher your chances of getting some or all penalties removed.

Why You Should Act Immediately

Delaying corporate tax compliance can lead to more than just fines. It can trigger:

• Further administrative penalties
• Potential blacklisting or legal scrutiny
• Loss of business credibility with banks, suppliers, and government bodies

Filing by 31 July 2025 gives you a golden opportunity to make things right—and avoid escalating consequences.

How BSD Prime Services Can Help You Avoid and Manage Corporate Tax Penalties

At BSD Prime Services Dubai, we understand that managing corporate tax in a fast-changing regulatory environment can be difficult—especially for small to mid-sized businesses. That’s why we offer end-to-end corporate tax solutions tailored to your unique business needs.

Here’s how we can help:

• 1: Tax Health Check & Compliance Review
  We start by reviewing your business's current tax status, identifying areas of non-compliance, and assessing risks. This helps uncover errors or delays before they turn into penalties.
• 2: On-Time Corporate Tax Return Filing
  Our tax experts ensure your corporate tax return is filed accurately and before 31 July 2025, avoiding last-minute rush and reducing the risk of filing errors. We handle the FTA portal submissions and paperwork on your behalf.
• 3: Penalty Appeal & Waiver Application Support
  If you’ve already received a fine, we assist in preparing and submitting your penalty relief application. We draft formal letters, gather supporting documents, and communicate with the FTA to improve your chances of a successful waiver.
• 4: FTA Registration & Consultation
  Many businesses miss the first step—registering for corporate tax. We help register your business correctly, avoiding administrative penalties from the start.
• 5: Accurate Tax Calculations
  Incorrect calculations can lead to underpayment or overpayment. Our team ensures your tax liability is correctly calculated as per FTA guidelines, based on allowable deductions and applicable rates.
• 6: Recordkeeping & Documentation
  We guide you on maintaining proper financial records and backup documents to support your tax filings. This is especially useful in case of future audits or reviews by the FTA.
• 7: Tax Planning for Future Compliance
  We don’t just solve today’s problems—we help you plan for the future. With our advisory services, you can stay compliant, save money, and make smarter financial decisions.

BSD Prime Services: Trusted by UAE Businesses

Over the years, BSD Prime Services Dubai has built a reputation for reliable and affordable tax services. Our clients include startups, SMEs, large corporations, and free zone entities across the UAE.

Why businesses choose us:

• In-depth understanding of UAE corporate tax laws
• Dedicated consultants for personalised support
• Transparent pricing with no hidden charges
• Proven track record in handling tax penalties and appeals

When it comes to tax compliance, having the right team can make all the difference.

Final Words: Act Before 31 July 2025

If your financial year ended on 31 December 2024 and you’ve received a corporate tax penalty, don’t wait. You still have time to fix the issue, file your return, and request a waiver—before 31 July 2025.

The longer you delay, the harder it becomes to resolve. Whether you need help filing or dealing with an existing fine, BSD Prime Services Dubai is here to support you every step of the way.

Contact BSD Prime Services Dubai Today

Let our experts handle your corporate tax worries—so you can focus on your business.

Phone: +971 50 710 3139

Website: www.primeservicesdubai.com