The UAE has been a global economic power, having a significant position as a prominent business hub. Constant monitoring of the financial sector and the introduction of regulations are crucial to maintain the economic growth of the country. The newly implemented UAE tax rules, which came into effect from 01 January 2026, aim to regulate VAT and tax rules in a better way than before.
Transparency in taxation and VAT, boosting tax collection by strict tax rules, and streamlined regulatory aspects are the basic goals of the UAE tax rule change of 2026. The amendments promulgated by the Ministry of Finance through the Federal Decree Law No. 16 and 17 of 2025 are applicable from the start of 2026.
Accordingly, the following will change from the current fiscal:
- Tax error reporting
- Tax documentation
- Refund claims
- Communication Procedure with the Federal Tax Authority (FTA)
On the other hand, the Cabinet Decision No. 129/2025 announced in October 2025 stipulates that a comprehensive framework for tax penalties will become effective in April 2026. The subject order introduces a unified tax structure for VAT, Excise Tax, and Corporate Tax. And will replace the Cabinet decision 108/2021.
Schedule for