Policy update

Policy & Legal Updates

UAE Federal Tax Authority Mandates Supplier Verification for Input VAT Deductions

The UAE Federal Tax Authority has issued Decision No. 13 of 2026, establishing mandatory supplier verification requirements prior to claiming input VAT deductions. Taxable businesses must verify supplier incorporation details, authorized directors, and physical operating premises rather than relying solely on valid invoices. The decision introduces specific spend thresholds and requires companies to document the commercial rationale for transactions.

Policy & Legal Updates

UAE Corporate Tax Deadlines and Late Filing Penalties Clarified in Compliance Guidance

UAE corporate tax returns and tax payments must be settled within nine months following the end of an entity's financial year. Businesses missing the deadline face monthly late filing penalties starting at AED 500 alongside a 14 percent annual late payment charge. Certain companies with revenue above AED 50 million or qualifying free zone entities must also prepare audited accounts before submission.

Policy & Legal Updates

UAE Clarifies Mandatory Health Insurance Verification for Work Permit Issuance and Renewal

The UAE Ministry of Human Resources and Emiratisation has clarified health insurance verification requirements for work permit processing. Work permits will not be issued or renewed without system-level verification of a compliant, active policy covering the full permit period.

Policy & Legal Updates

Dubai Rental Disputes Center Permits Lease Annulment Before Start Date for Deception

Dubai's Rental Disputes Center has established a judicial principle permitting landlords and tenants to annul lease agreements before they take effect if deception during contracting is proven. The decision is based on Articles 170, 171, and 173 of the Civil Transactions Law. The ruling emerged after a landlord discovered past rental judgments and arrest orders against a corporate tenant prior to property handover.