Short answer: Closing your IFZA company involves two separate closures — the IFZA licence, and the FTA. On the FTA side you must: file your Corporate Tax returns (the final return covers the period up to cessation); keep filing until your deregistration is approved; apply for Corporate Tax deregistration within 90 days of ceasing business; and apply for VAT deregistration within 20 business days if registered. Miss the deregistration deadlines and it's AED 1,000 per month, capped at AED 10,000. The IFZA cancellation does none of this for you.
When people close an IFZA company, almost all the attention goes to the free zone — the resolution, the liquidation report, the cancellation. But there's a second closure happening in parallel, at the Federal Tax Authority, and it has its own deadlines and its own penalties. It's the one that keeps sending reminder emails after you thought you were done. Here's what you actually owe the FTA, and when.
Two closuresThe IFZA licence and the FTA are separate closures
This is the foundation, so it's worth stating plainly: cancelling your IFZA licence does not close your tax file. The IFZA cancellation ends the company at the free zone — it does not file your Corporate Tax returns, and it does not deregister you for Corporate Tax or VAT. Those are things you do with the FTA, separately.
Until the FTA side is complete, your tax registrations stay open, and the FTA continues to treat you as a taxable person who owes returns. That's exactly why reminder emails keep arriving even after you've submitted the IFZA cancellation — the two systems don't talk to each other, and the tax obligation is still live.
CT filingWhen is the Corporate Tax return due — and must I keep filing?
Your Corporate Tax return is due nine months after the end of the tax period. For a financial year ending 31 December 2025, the return is due by 30 September 2026. On closure you also file a final return covering the period up to the date the company ceases business.
And here's the part that catches people out: you must keep meeting your filing obligations until your deregistration is approved. Applying to deregister, or cancelling the IFZA licence, does not switch off the requirement.
Corporate Tax deregistration: the 90-day deadline
You must apply for Corporate Tax deregistration within three months (90 days) of the date the company ceases business or is dissolved. Late application carries an administrative penalty of AED 1,000 per month (or part month), capped at AED 10,000, under Cabinet Decision 75/2023 (as amended).
The FTA then reviews the application, checks that every return is filed and every dirham of tax and penalty is paid, and — only then — approves the deregistration. So the deregistration isn't instant on application; it's pre-approval followed by confirmation, and a clean filing record is what lets it go through without back-and-forth.
VAT deregistrationVAT deregistration: the tighter 20-business-day deadline
If the company is VAT-registered, the VAT side has a much tighter deadline: you must apply for VAT deregistration within 20 business days of ceasing to make taxable supplies. A final VAT return is required, including any deemed supply on remaining assets. Late VAT deregistration also carries an administrative penalty.
| Corporate Tax | VAT | |
|---|---|---|
| Deregister within | 3 months (90 days) of cessation | 20 business days of ceasing supplies |
| Final return? | Yes — up to cessation date | Yes — incl. deemed supply |
| Keep filing until approved? | Yes | Yes |
| Late penalty | AED 1,000/month, max AED 10,000 | Administrative penalty [VERIFY] |
| Fastlane fee | From AED 399 | AED 499 |
The mismatch in deadlines — 90 days for Corporate Tax, 20 business days for VAT — is where VAT-registered companies most often slip: they plan around the CT window and miss the VAT one. All figures [VERIFY] and current at August 2026.
Why the FTA side is worth finishing properly
Unfiled returns, unpaid Corporate Tax or VAT, and outstanding penalties keep your FTA registrations open and leave loose ends attached to the company and its owners — even after IFZA has cancelled the licence. A company that's "closed" at the free zone but still open at the FTA isn't really closed. The tidy sequence is: file everything due → apply to deregister within the deadlines → keep filing until the FTA confirms → done — so nothing keeps running once IFZA issues the cancellation letter.
We'll close the FTA side alongside your IFZA cancellation
Fastlane is an FTA-Registered Tax Agent. We file your final Corporate Tax return, manage the returns due until deregistration is approved, and handle Corporate Tax deregistration (from AED 399) and VAT deregistration (AED 499) — timed with your IFZA closure so both finish together. Send your trade licence and TRN to start.
+971 55 127 3479 · info@fastlanecareer.com
Related guides and services
- Corporate tax deregistration — final return and CT deregistration, from AED 399.
- VAT deregistration — final VAT return and deregistration, AED 499.
- IFZA liquidation, fully managed — the free-zone side of the closure.
- IFZA liquidation report explained — and when your company is actually closed.
CT Deregistration
Final return and CT deregistration — from AED 399.
VAT Deregistration
Final VAT return and deregistration — AED 499.
IFZA Closure
The free-zone side, fully managed.
Frequently asked questions
No. Cancelling your IFZA licence and settling your position with the Federal Tax Authority are two separate closures. The IFZA cancellation ends the company at the free zone; it does not file your Corporate Tax returns, and it does not deregister you for Corporate Tax or VAT. Until you complete the FTA side, your tax registrations stay open and the FTA continues to expect returns — which is why reminder emails keep arriving even after you’ve applied to close the licence.
The Corporate Tax return is due nine months after the end of the tax period. For a financial year ending 31 December 2025, that means the return is due by 30 September 2026. When you close, you also file a final return covering the period up to the date the company ceases business. Missing the filing deadline carries its own penalties, separate from the deregistration penalties below.
Yes — this is the point most people miss. You must keep meeting your filing obligations until your deregistration is approved by the FTA. Applying to deregister, or cancelling the IFZA licence, does not switch off the requirement. The FTA only approves deregistration once all returns are filed and all tax and penalties are paid — so returns that fall due before that approval still have to be filed. Stop early and you accumulate penalties on a company you thought was closed.
You must apply for Corporate Tax deregistration within three months (90 days) of the date the company ceases business or is dissolved. Late application attracts an administrative penalty of AED 1,000 per month (or part month), capped at AED 10,000, under Cabinet Decision 75/2023 (as amended). The FTA then reviews the application, confirms all returns are filed and dues paid, and issues the deregistration — so applying early, with a clean filing record, is what makes it go through smoothly.
If the company is VAT-registered, you must apply for VAT deregistration within 20 business days of ceasing to make taxable supplies — a much tighter window than the Corporate Tax one, and a common trap. A final VAT return is required, including any deemed supply on remaining assets. Late VAT deregistration also carries an administrative penalty. [VERIFY the current VAT late-deregistration penalty against FTA guidance.]
They can certainly hold up a clean exit. Unfiled returns, unpaid Corporate Tax or VAT, and outstanding penalties keep your FTA registrations open and leave loose ends attached to the company and its owners even after the licence is cancelled. The tidy sequence is to file everything due, apply to deregister within the deadlines, and let the FTA confirm deregistration — so nothing is left running once IFZA issues the cancellation letter.
Yes. We file your final Corporate Tax return, manage the returns that fall due until deregistration is approved, and handle Corporate Tax deregistration (from AED 399) and VAT deregistration (AED 499) — timed alongside your IFZA liquidation so the free-zone and FTA closures finish together. Send us your IFZA trade licence and TRN to start.
Fastlane Tax Team
FTA-Registered Tax Agent · MoE-Approved Auditor · Dubai
This article was prepared by the team at Fastlane Management Consultancy, a Dubai-based FTA-Registered Tax Agent and MoE-Approved auditor. We handle the FTA side of company closures — final Corporate Tax and VAT returns and deregistration — alongside IFZA and other free zone liquidations.