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Quick answer
If the FTA has emailed to say it noticed you cancelled your trade licence but didn’t apply for deregistration, take it seriously. Cancelling your licence does not deregister you from Corporate Tax or VAT — you stay on the FTA register, with ongoing filing obligations and late-deregistration penalties of AED 1,000 per month (up to AED 10,000) for each — until you apply. If you meet the criteria, apply for Corporate Tax deregistration (within 3 months of cessation) and, if registered, VAT deregistration (within 20 business days), file any final returns, and close the file. Don’t ignore it — the FTA already knows.
This email catches a lot of owners off guard. You cancelled the company months ago, moved on — and now a message from the Federal Tax Authority lands saying you never deregistered for tax. The instinct is to wonder if it’s real or if it even matters. It’s real, and it does. Here’s what’s actually happening and what to do about it.
What the email means
The FTA cross-checks licence cancellations
The FTA can see when a trade licence has been cancelled, and it matches that against its tax register. When it finds a company that cancelled its licence but is still registered for Corporate Tax or VAT, it sends a notification like this one — pointing out the gap and inviting you to apply for deregistration if you meet the criteria. Treat it as a courtesy prompt with a warning attached: the authority has noticed, and the obligation hasn’t gone away.
The core misconception
Cancelling your licence is not deregistering for tax
Two separate systems
Your licence is issued and cancelled by your free zone or the DED. Your tax registration sits with the FTA. Cancelling the first does not close the second. Until you file a deregistration application with the FTA, you remain a registered taxable person — with returns still expected and penalties still accruing, even though the business no longer exists on paper.
Why it matters
You’re still accruing — from the cessation date
Leaving the registrations open isn’t harmless. Two separate late-deregistration penalties run:
| Registration | Deadline to apply | Late penalty |
|---|---|---|
| Corporate Tax | Within 3 months of cessation | AED 1,000/month, up to AED 10,000 |
| VAT (if registered) | Within 20 business days of ceasing taxable supplies | AED 1,000/month, up to AED 10,000 |
Crucially, these clocks run from the cessation / licence-cancellation date — not from the day the FTA emails you. So by the time this notification arrives, you may already be some months into the penalty. Acting now stops it growing further.
What to do
Your next steps
- Confirm your position. Check on EmaraTax whether you’re registered for Corporate Tax and/or VAT — many owners aren’t sure of their VAT status in particular.
- Apply for Corporate Tax deregistration using the cessation date, and file the final CT return the FTA requests.
- Apply for VAT deregistration if registered — file any outstanding returns first, and claim any credit balance.
- If you’ve missed a deadline (which this email usually implies), apply anyway, without delay — it stops further monthly penalties, and where there was genuine cause for the delay, a reconsideration may be possible.
There may be a silver lining
If this is your first tax period and you incurred the AED 10,000 late-registration penalty, filing your final CT return within 7 months of the cessation date can have that penalty waived automatically — so acting on this email promptly can actually save you money. See how the waiver works when closing.
One safety note
Genuine — but verify links the smart way
These notifications are legitimate, but as a habit, access FTA guidance through the official portal at tax.gov.ae and your account on EmaraTax rather than clicking shortened links in any email. It’s good practice generally, and it means you’re always acting on the real requirements — not a lookalike.
Got the FTA email? We’ll close both registrations for you.
We confirm your Corporate Tax and VAT position, apply for both deregistrations using the correct cessation date, file the final returns, and respond to the FTA — stopping the penalty clock. CT deregistration from AED 399.
Related reading
Is your company even VAT registered? How to check →Corporate Tax deregistration: process, deadlines & penalties →Related Fastlane services
FAQ
The FTA emailed that I cancelled my licence but didn't deregister — what does it mean?
It means the FTA has matched your cancelled trade licence against its tax register and found you are still registered for Corporate Tax and/or VAT. Cancelling a licence does not close your tax registration, so the FTA is prompting you to apply for deregistration if you meet the criteria. It is a genuine notification and should be acted on, not ignored.
Does cancelling my trade licence deregister me from Corporate Tax or VAT?
No. Your licence is cancelled by your free zone or the DED, while your tax registration sits with the FTA — two separate systems. Until you file a deregistration application with the FTA, you remain a registered taxable person with ongoing filing obligations and accruing penalties, even though the business no longer exists on paper.
What are the penalties for not deregistering after closing?
Two separate late-deregistration penalties can run: for Corporate Tax, the application is due within 3 months of cessation, and for VAT within 20 business days of ceasing taxable supplies. Each carries a penalty of AED 1,000 per month up to a maximum of AED 10,000. These run from the cessation date, so they may already be accruing by the time the FTA emails you.
What should I do after getting this FTA email?
Confirm whether you are registered for Corporate Tax and VAT on EmaraTax, then apply for Corporate Tax deregistration using the cessation date and file the final return the FTA requests. If VAT registered, apply for VAT deregistration too, filing any outstanding returns and claiming any credit. If a deadline has passed, apply without delay to stop further penalties.
Can I still deregister if I've already missed the deadline?
Yes. You should still apply as soon as possible — doing so stops the monthly penalty from growing further. Where there was genuine cause for the delay, a reconsideration request may be possible. Leaving the registration open only compounds the penalties and keeps the file, and its obligations, active.
Is the FTA deregistration email genuine, and should I click the link?
Notifications about an un-deregistered cancelled licence are genuine. As good practice, though, access FTA guidance through the official portal at tax.gov.ae and your EmaraTax account rather than clicking shortened links in emails, so you are always acting on the real requirements. If in doubt, confirm through your tax agent or the FTA directly.
General guidance on Corporate Tax and VAT deregistration after a licence cancellation, current as of August 2026; not tax advice. Deregistration deadlines and penalties are set by the FTA (Federal Decree-Law 47 of 2022 and the VAT Law, with penalties under the relevant Cabinet Decisions) and depend on your circumstances. Confirm your position on the official EmaraTax portal or with a qualified tax adviser before acting.