Policy update

Policy & Legal Updates

UAE Caps Individual Resident Car Ownership at Five Vehicles Starting 2027

Under new federal traffic regulations taking effect in January 2027, individual UAE residents holding an Emirates ID will be limited to owning and registering up to five vehicles. Standard registration will cover the first two vehicles, with additional surcharges applied to every vehicle beyond the second. The regulation is designed exclusively for individual car owners rather than businesses to help manage traffic congestion.

Policy & Legal Updates

UAE Updates E-Invoicing Rules Ahead of Mandatory Rollout in January 2027

The UAE Ministry of Finance issued Ministerial Decision No. 197 of 2026 updating corporate electronic invoicing regulations. The revised rules introduce a 14-day transmission window, remove local server storage mandates, and grant temporary exemptions for intra-group transactions.

Policy & Legal Updates

UAE Outlines Pillar Two Top-Up Tax Registration Deadline for Multinational Groups

The UAE Federal Tax Authority has clarified mandatory registration deadlines under the Domestic Minimum Top-up Tax framework. In-scope multinational entities must complete Top-up Tax registration by 30 November 2026 via the EmaraTax portal. Failure to comply can result in an administrative penalty of AED 10,000 per entity.

Policy & Legal Updates

UAE Clarifies Distinct Free Zone Definitions Across Corporate Tax, VAT, and Excise

The UAE Federal Tax Authority issued Tax Public Clarification TAXP010 confirming that Free Zone and Designated Zone definitions differ across Corporate Tax, VAT, and Excise Tax. These definitions are not interchangeable, requiring companies to assess each tax regime independently. Certain zones like JAFZA, DAFZA, and KIZAD qualify as Corporate Tax Designated Zones, whereas ADGM, DIFC, and DMCC do not qualify as VAT Designated Zones.