The UAE Federal Tax Authority has issued Decision No. 4 of 2026, setting updated technical and operational standards for accounting records. The rules apply to all corporate tax and VAT-registered entities across mainland and free-zone jurisdictions regardless of size.
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.
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.
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