Mainland Business Avoids Corporate Tax Penalties

Every business in the UAE has to follow the applicable rules and deadlines of corporate tax, as who would not like to avoid heavy penalties. In this case study, Vertix Auditing helped a mainland tech company to avoid fines by acting quickly during the FTA’s grace period and setting up proper systems to stay compliant in the future.

Client Background

Our client, XYZ Tech LLC, is a technology company based in the Dubai Mainland. They make custom software for businesses in the hospitality, retail, and education sectors. The company makes about AED 4 million a year, and it is growing very well. They were lacking tax expertise in their team and could not register for corporate tax on time.

Once the company found out about the registration deadlines for corporate tax through a media report, they realized they had already missed the deadline. This made them approach us to help them manage the corporate tax registration and file corporate tax return by 31 July 2025 to avoid late registration fine.

Challenges Faced in Corporate Tax Compliance

When the client came to us, they were in a hurry and had very little time left. The main problems they faced were:

• The company was still not registered for corporate tax with the FTA.
• The business was at risk of getting AED 10,000 fine for registering late.
• The company didn’t have any 2024 financial reports ready, which were needed to file the tax return.
• Internal knowledge of corporate tax obligations was limited.

Our Solution to Avoid Penalties and Establish Compliance

We implemented a step-by-step solution to help our client with the registration and filing process.

• We completed the corporate tax registration process on the EmaraTax portal. Our team ensured that all supporting documents were uploaded correctly, including trade license, MOA, and identity records of the shareholders and POA holders.
• We completed their accounting and bookkeeping by manually preparing the trial balance, general ledger, bank reconciliation statement, and management accounts-including the profit and loss statement and balance sheet-using the company’s sales records, purchase records, payment and receipt transactions through credit/debit cards, and bank statements.
• We then completed the corporate tax filling of the company within the grace period before 31 July 2025, avoiding the AED 10,000 late registration penalty.
• We delivered a short internal workshop to help the client understand their tax obligations. We also set up a compliance calendar for future years, complete with filing dates, document requirements, and automated reminders.

Results and Client Feedback

The late registration penalty was waived by the FTA. The client expressed great satisfaction and pleasure with the work we performed in a very limited time. They also appreciated our tax knowledge, technical expertise, and our logical approach to handle tax-related matters in the best interest of clients.

Continue Reading: 5 Practical Corporate Tax Case Studies in 2025