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UAE TAX UPDATES

UAE TAX UPDATES

Stay updated with the latest developments in the UAE's federal taxation regime, covering Corporate Tax, VAT and Excise Tax.

Waiver of Late Registration Penalty (Public Clarification – July 2025)

The FTA introduced a relief initiative for businesses that missed the deadline to register for Corporate Tax. Normally, an AED 10,000 penalty applies for late registration under Cabinet Decision No. 75 of 2023. However, from 14 April 2025, eligible taxpayers and exempt persons can apply for a waiver or refund of this penalty if:
  • Their first Corporate Tax Return or annual declaration is filed within 7 months from the end of the first Tax Period (instead of the standard 9 months).
  • Applies to both Taxable Persons and certain Exempt Persons (such as qualifying public benefit entities).
  • Even if the penalty has already been paid, the AED 10,000 is refunded as a credit in the EmaraTax account.
  • This initiative only applies to the first Tax Period (past or future).

Key takeaway: Timely submission of the first return or declaration secures relief from late registration penalties.

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Audited Financial Statements for Tax Groups (FTA Decision No. 7 of 2025)

From 1 January 2025 onwards, Tax Groups are required to prepare special purpose audited financial statements (Aggregated FS).
Key Requirements:
  • Aggregated FS = combining standalone accounts of all group members while eliminating intra-group transactions.
  • Must comply with IFRS / IFRS for SMEs, with specific deviations for Corporate Tax (e.g., excluding goodwill adjustments).
  • Mandatory audit under ISA standards.
  • Submission deadline: within 9 months from the end of the tax period.

Key takeaway: Tax Groups face stricter compliance, requiring audited special-purpose FS alongside standard tax filings.

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Public Clarification: Aggregate FS & Audit for Tax Groups (Aug 2025)

This clarification expands on FTA Decision No. 7 of 2025, explaining how to prepare and audit
Aggregated Financial Statements (FS) for Tax Groups.

Requirements:
  • Statements must be in AED, prepared annually, with all members aligned to the same financial year.
  • Must use uniform accounting policies across all members.
  • Audits required under ISA standards.
  • Aggregated FS differ from consolidated FS (used in accounting) as they are designed specifically for Corporate Tax assessment.

Key takeaway: Aggregated FS are a tax-specific compliance requirement,
distinct from consolidated financial reporting under IFRS.

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  • Having reviewed the Constitution
  • Federal Law No. 1 of 1972 on the Competencies of the Ministries and Powers of the Ministers, and its amendments
  • Federal Decree-Law No. 28 of 2022 on Tax Procedures, and its amendments
  • Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, and its amendments       •   
  • Pursuant to what was presented by the Minister of Finance and upon the approval of the Cabinet
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  • Having reviewed the Constitution
  • Federal Decree-Law No. 28 of 2022 on Tax Procedures, and its amendments
  • Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, and its amendments
  • Cabinet Decision No. 142 of 2024 on the Imposition of Top-up Tax on Multinational Enterprises
  • Pursuant to what was presented by the Minister of Finance and upon the approval of the Cabinet
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  • Reviewed the Constitution
  • Federal Law No. 1 of 1972 and its amendments
  • Federal Decree-Law No. 28 of 2022 on Tax Procedures
  • Federal Decree-Law No. 47 of 2022 on Corporate Tax
  • Cabinet Decision No. 142 of 2024
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  • Specifies the competent authority
  • Refers to Ministerial Decision No. 229 of 2025 on qualifying and excluded activities
  • Issued under Federal Decree-Law No. 47 of 2022 on Corporate Tax
  • Based on applicable laws and approvals
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Waiver of Late Registration Penalty (Public Clarification – July 2025)

The FTA introduced a relief initiative for businesses that missed the deadline to register for Corporate Tax.
Normally, an AED 10,000 penalty applies for late registration under
Cabinet Decision No. 75 of 2023.

However, from 14 April 2025, eligible taxpayers and exempt persons can apply for a
waiver or refund of this penalty if:

  • Their first Corporate Tax Return or annual declaration is filed within
    7 months from the end of the first Tax Period (instead of the standard 9 months).
  • Applies to both Taxable Persons and certain Exempt Persons
    (such as qualifying public benefit entities).
  • Even if the penalty has already been paid, the AED 10,000 is refunded as a credit in the
    EmaraTax account.
  • This initiative only applies to the first Tax Period (past or future).

Key takeaway: Timely submission of the first return or declaration secures relief from late registration penalties.

Related links:
Regulatory Compliance Services

Download PDF

Audited Financial Statements for Tax Groups (FTA Decision No. 7 of 2025)

From 1 January 2025 onwards, Tax Groups are required to prepare special purpose audited financial statements (Aggregated FS).
Key Requirements:
  • Aggregated FS = combining standalone accounts of all group members while eliminating intra-group transactions.
  • Must comply with IFRS / IFRS for SMEs, with specific deviations for Corporate Tax (e.g., excluding goodwill adjustments).
  • Mandatory audit under ISA standards.
  • Submission deadline: within 9 months from the end of the tax period.

Key takeaway: Tax Groups face stricter compliance, requiring audited special-purpose FS alongside standard tax filings.

Related links: Financial Consultancy Services

Download PDF
VAT is a general consumption tax on the supply of Goods and Services, that applies to most supplies which take place within the territorial area of the UAE. Taxable Persons are required to impose 5% VAT on all their supplies of Goods and Services made in the course of business in the UAE, unless such supply qualifies for zero-rating or exemption. Since VAT is imposed on the value of Taxable Supplies and Imports,1 it is, generally, important to identify the value of each supply. The value of a supply for VAT purposes is directly linked to the Consideration received for the supply as the value is equal to the Consideration less the VAT included therein…
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This document provides the list of mandatory fields for an Electronic Invoice and should be read in conjunction with:
  • UAE Electronic Invoicing System Guidelines
  • Ministerial Decision No. 243 of 2025 on the Electronic Invoicing System.
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This document describes the process and results of performing end-to-end testing of user. The testing includes verification of end user details and the onboarding of users to the ASP The objective is to ensure that the redirection, user verification, and onboarding processes function as intended, providing a seamless experience for end users…
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This guide is intended to help the readers understand the UAE Electronic Invoicing rules and the impact that they will have on existing processes. This document should be read in conjunction with the following:
  • Ministerial Decision No. 243 of 2025 on the Electronic Invoicing System…
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This is the second part of two Taxable Person Guides for Excise Tax, covering the Excise Tax legislation in the UAE:
  • ETGTP1 – covers the legislative provisions as they apply to Excise Goods generally
  • ETGTP2 – covers the products subject to Excise Tax and the application of the general provisions on Excise Goods. …
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From 1 July 2025, Excise Goods1 shall not be considered as “released for consumption” where a Natural Shortage in the quantity of the Excise Goods occurs, provided the relevant conditions are fulfilled…
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