Banking, fintech, funds, capital markets and cross-border investment
The UAE Federal Tax Authority issued Decision No. 17 of 2026 setting conditions for businesses to recover input VAT on employee expenses from 1 October 2026. Separately, the authority released guidance on the Qualified Domestic Minimum Top-up Tax for qualifying multinational groups.
The UAE Federal Tax Authority published Tax Public Clarification TAXP010 explaining how businesses must assess whether facilities qualify as Free Zones or Designated Zones. The guidance emphasizes that zone definitions differ across Corporate Tax, Value Added Tax, and Excise Tax laws. Qualifying for a 0% Corporate Tax rate requires meeting specific statutory criteria, including separate evaluation from VAT Designated Zone status.
International Monetary Fund Managing Director Kristalina Georgieva warned that elevated energy prices will likely persist even after Gulf conflict subsides, with Strait of Hormuz navigation risks hitting Asian and Chinese supplies. Concurrently, senior transaction bankers reported that energy security and AI infrastructure expansion are driving higher working capital requirements and shifting trade finance patterns across Asia.
The UAE Federal Tax Authority has issued a new guide regarding scope and registration for the Top-up Tax on multinational enterprises. The document supports multinational enterprise groups in understanding obligations under the Qualified Domestic Minimum Top-up Tax regime and OECD/G20 Pillar Two framework. It details in-scope criteria, registration timelines, and reporting requirements ensuring an effective tax rate of at least 15%.
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