The UAE Federal Tax Authority published Public Clarification TAXP010 regarding Free Zones and Designated Zones for tax purposes. The guidance details geographic qualifying criteria affecting corporate tax treatment and the preferential 0% rate on distribution activities.
The UAE Federal Tax Authority has enforced Decision No. 17 of 2026, introducing stricter conditions for recovering input VAT on employee benefits. Following amendments to VAT Executive Regulations, employment contracts or HR policies alone are no longer sufficient to claim VAT recovery. Input tax will become an unrecoverable business expense if employers fail to meet detailed requirements across six expense categories.
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