Under Federal Tax Authority Decision No. 17 of 2026, UAE businesses can recover input VAT on six categories of employee expenses following rules that took effect on October 1. Eligible expenses include transport, accommodation, mobile services, and parking, subject to documented policies or contractual obligations. Taxable entities must retain compliance documentation for tax audits.
Finanshels has introduced Hala Tax, an AI-powered tax advisor designed for small businesses and freelancers in the UAE. The tool provides guidance on Corporate Tax, VAT, and Small Business Relief based on UAE legislation and Federal Tax Authority updates. Accessible via web and WhatsApp, it generates personalized compliance summaries and provides access to professional review.
The UAE has issued Ministerial Decision No. 133 of 2026, establishing procedural filing rules for the Pillar Two Information Return under its Domestic Minimum Top-up Tax regime. The requirements apply to multinational groups with annual consolidated revenues of at least 750 million euros, covering fiscal years starting on or after 1 January 2025. In-scope entities must submit returns within 15 months following the fiscal year-end, with provisions allowing local centralised filings or exemptions tied to international exchange agreements.
The UAE Ministry of Finance has extended the corporate tax Small Business Relief regime through 31 December 2029 under Ministerial Decision No. 131 of 2026. Resident businesses with annual revenue up to AED 3 million remain eligible for nil taxable income treatment. Businesses electing the relief must still register with the Federal Tax Authority and file annual returns.
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