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Federal Tax Authority

Policy & Legal Updates
Source: Arabian Business

UAE Clarifies 2026 Corporate Tax Rules for Mainland and Free Zone Firms

Mainland UAE companies are subject to a 0% tax rate on taxable profits up to AED 375,000 and 9% thereafter, while Qualifying Free Zone Persons face different rules. Free zone entities receive a 0% rate on qualifying income, but non-qualifying revenue is taxed at 9% without the AED 375,000 threshold. Companies with financial years ending December 31, 2025, must submit returns and pay tax by September 30, 2026.

Policy & Legal Updates
Source: Aurne

UAE Clarifies Pillar Two Tax Reporting Obligations for Large Multinational Enterprises

The UAE Ministry of Finance has issued ministerial decisions detailing reporting and compliance procedures under the OECD/G20 Pillar Two minimum 15 percent tax framework. The rules apply to multinational groups with consolidated revenue of at least EUR 750 million in at least two of the four preceding fiscal years. Guidelines define GloBE Information Return submissions, Federal Tax Authority notifications, and the appointment of local filing entities.

Policy & Legal Updates
Source: Meyer-Reumann & Partners

UAE Issues New VAT Rules on Supplier Verification Before Input Tax Recovery

The UAE Federal Tax Authority has issued FTA Decision No. 13 of 2026, establishing mandatory supplier due-diligence rules for input VAT recovery. Taking effect on 1 October 2026, the framework requires businesses to verify supplier identities and transactions against designated risk thresholds. Failure to maintain these records grants tax authorities the right to reject input VAT recovery claims.

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