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Federal Tax Authority

Policy & Legal Updates
Source: The National

UAE Federal Tax Authority Clarifies Corporate Tax Deductions for Employee Expenses

The UAE Federal Tax Authority has issued updated guidance specifying deductible corporate tax expenses concerning employee compensation and benefits. Eligible deductions include staff transport, accommodation, meals, mobile phone allowances, and parking under the nation's 9 percent corporate tax framework. The regulations set strict limits to prevent personal, non-business deductions by shareholders and directors.

Policy & Legal Updates
Source: Emirates 24|7

UAE FTA Launches AI-Powered Digital Platform for Tourist VAT Refunds

The UAE Federal Tax Authority, in collaboration with Planet, has launched an artificial intelligence-powered digital platform for tourist Value Added Tax (VAT) refunds. Operational across major airports in Dubai, Abu Dhabi, and Sharjah, the paperless system uses facial recognition to process claims. The upgrade reduces tourist refund distribution times from roughly nine days to one business day.

Policy & Legal Updates
Source: Arabian Business

UAE Ministry of Finance Introduces Key Amendments to E-Invoicing System Rules

The UAE Ministry of Finance has issued Ministerial Decision No. 197 of 2026, updating the executive rules for the Electronic Invoicing System with effect from October 1, 2026. The amendments eliminate the local data storage requirement and remove mandatory two-day failure notifications to tax authorities. A 24-month temporary exclusion is also introduced for transactions between members of the same tax group starting January 1, 2027.

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