Asan Tata— November 11, 2026UAE corporate tax revenue reached about Dh46.52 billion for tax periods ending in the 2025 financial year. The Federal Tax Authority (FTA) announced the figure on 11 November 2026. It is 33.9 per cent higher than the Dh34.75 billion collected for 2024.
Total Corporate Tax collected since the tax began now stands at about Dh81.27 billion. The FTA also reported better on-time filing and payment across all three taxes. This article explains the new figures in plain language: what the FTA announced, why revenue rose, how the tax works, and what business owners should do next.
Quick Answer
The UAE’s Federal Tax Authority collected about Dh46.52 billion in Corporate Tax for tax periods ending in 2025, up 33.9 per cent from about Dh34.75 billion in 2024. Total Corporate Tax collected since the tax was introduced now stands at about Dh81.27 billion. VAT revenue shared with the federal and emirate governments reached about Dh28.27 billion for January to August 2026, while Excise Tax reached about Dh1.4 billion over the same period. On-time filing of Corporate Tax returns rose to 91 per cent in 2026, up from 87 per cent in 2025.
UAE Corporate Tax Revenue: The Headline Figures
| Figure | Amount | Change |
|---|---|---|
| Corporate Tax revenue, tax periods ending in 2025 | About Dh46.52 billion | Up 33.9% from 2024 |
| Corporate Tax revenue, tax periods ending in 2024 | About Dh34.75 billion | — |
| Total Corporate Tax since introduction to end of 2025 | About Dh81.27 billion | — |
| VAT revenue distributed, January to August 2026 | About Dh28.27 billion | No year-on-year figure given |
| Excise Tax revenue, January to August 2026 | About Dh1.4 billion | No year-on-year figure given |
The Dh46.52 billion figure is equal to about $12.7 billion, and the total since the tax began is about $22.1 billion.
What the FTA Announced on 11 November
The FTA announced the figures on 11 November 2026, covering Corporate Tax, VAT and Excise Tax, plus new compliance figures for all three. For Corporate Tax, the authority reported revenue for tax periods ending in the 2025 financial year. A tax period is the financial year a business uses for its accounts. Most UAE businesses use the calendar year, so their 2025 tax period ended on 31 December 2025.
Abdulaziz Al Mulla, Director General of the FTA, said the growth reflects the efficiency of the authority’s work and its efforts to develop its procedures and services. He added that compliance and engagement with tax law had improved, helped by greater awareness and a stronger tax culture.
Why Revenue Rose
The FTA did not give a breakdown of what caused the rise. It did not say how much came from higher business profits, new taxpayers, or better collection. The rise is real, but its exact causes are not public.
Three facts help explain the picture. First, far more businesses are now registered for Corporate Tax. The FTA’s 2025 Annual Report, published in June 2026, said more than 245,000 Corporate Tax registration applications were completed during 2025. Each new registered business adds to the tax base.
Third, on-time filing improved. The FTA reported that 91 per cent of Corporate Tax returns were filed on time in 2026, up from 87 per cent in 2025. The on-time payment rate stood at 97 per cent. When more businesses file and pay on time, more revenue arrives in the same year. The FTA said the figures reflect improved compliance with the timely filing of tax returns. That is the authority’s own explanation. It did not claim that business profits rose by the same amount.
VAT and Excise Tax Figures
The FTA also reported figures for the other two federal taxes. VAT revenue distributed to the federal government and the emirate governments for the tax periods between January and August 2026 amounted to about Dh28.27 billion. Excise Tax over the same eight months amounted to about Dh1.4 billion.
These two figures are different from the Corporate Tax figure in one important way. The FTA did not give matching figures for the same period in 2025, so no year-on-year growth rate can be worked out for VAT or Excise Tax from this announcement.
For context, the FTA’s 2025 Annual Report said total tax revenues collected from VAT and Excise Tax rose to Dh46 billion in 2025, compared with Dh41 billion in 2024. That figure covers the full year 2025, not the January to August 2026 period in the new announcement. VAT, the oldest of the three taxes, was introduced on 1 January 2018 at a standard rate of 5 per cent.
Tax Compliance Is Improving
The FTA reported better compliance across all three taxes in 2026. The figures cover both filing on time and paying on time. They show a tax system that is settling down after its first years.
| Tax | On-time filing 2026 | On-time filing 2025 | On-time payment 2026 |
|---|---|---|---|
| Corporate Tax | 91% | 87% | 97% |
| VAT | 83% | 81% | 98% |
| Excise Tax | 92% | 91% | 98% |
Corporate Tax showed the biggest gain in on-time filing, up four points to 91 per cent. VAT on-time filing rose two points to 83 per cent, and Excise Tax rose one point to 92 per cent.
On-time payment rates are higher than on-time filing rates for all three taxes. That is normal. Some businesses file late but still pay on time. The FTA reported on-time payment of 97 per cent for Corporate Tax and 98 per cent for both VAT and Excise Tax.
How UAE Corporate Tax Works
UAE Corporate Tax is governed by Federal Decree-Law No. 47 of 2022. It applies to financial years starting on or after 1 June 2023. The FTA administers the tax through its EmaraTax portal.
Taxable income up to Dh375,000 is taxed at 0 per cent. Only the part of taxable income above Dh375,000 is taxed at 9 per cent. This is a band, not a cliff. A business with Dh500,000 of taxable profit pays 9 per cent on Dh125,000 only. That is Dh11,250, an effective rate of 2.25 per cent.
| Taxable income | Corporate Tax rate |
|---|---|
| Dh0 to Dh375,000 | 0% |
| Above Dh375,000 | 9% on the amount above Dh375,000 |
Registration is mandatory for every taxable person, including free zone companies and businesses that expect to pay nothing. Registration is done once, through the EmaraTax portal. The FTA then issues a Corporate Tax Registration Number. The return and payment are due within nine months of the end of the tax period. A company whose financial year ended on 31 December 2025 must file and pay by 30 September 2026. There is one return and one payment a year, and no advance instalments.
Missing the registration deadline carries a fixed penalty of Dh10,000. The penalty is set under Cabinet Decision No. 75 of 2023, as amended. The FTA has operated a penalty waiver system since April 2025 under Public Clarification CTP006, but business owners should not rely on a waiver. Registering on time is the safe route.
Natural persons who run a business must also watch the rules. A resident natural person whose business turnover exceeds Dh1 million in a calendar year must register for Corporate Tax, with the application due by 31 March of the following year.
Small Business Relief and Free Zone Rules
Two reliefs can reduce the tax to zero for some businesses. The first is Small Business Relief. Under Ministerial Decision No. 73 of 2023, a resident business with revenue of Dh3 million or less may elect to be treated as having no taxable income. The relief is available only for tax periods ending on or before 31 December 2026. Unless the Ministry of Finance extends it, businesses will fall back to the standard 0 per cent and 9 per cent treatment for periods beginning in 2027.
The second relief applies to free zone businesses. A free zone company that meets a strict test becomes a Qualifying Free Zone Person and pays 0 per cent on its qualifying income. Non-qualifying income is taxed at 9 per cent from the first dirham. The de-minimis test allows non-qualifying income up to the lower of 5 per cent of total revenue or Dh5 million. If that limit is breached, the company loses the 0 per cent rate for about five years.
Both reliefs have conditions. Small Business Relief is an election, so the business must choose it. Qualifying Free Zone status must be kept year by year. Check the conditions on the FTA website before relying on either relief.
What This Means for Your Business
The new figures send a clear message. Corporate Tax is now a settled part of doing business in the UAE. The FTA is collecting more, and more businesses are filing on time. The grace period for learning the rules is over.
If you run a business in the UAE, check four things now. First, confirm that your business is registered for Corporate Tax on EmaraTax. Registration is mandatory even if you expect to pay nothing. Second, check your filing deadline: the return and payment are due within nine months of the end of your tax period.
Third, work out whether Small Business Relief applies to you. If your revenue is Dh3 million or less, you may be able to elect zero taxable income for periods ending on or before 31 December 2026. That relief ends soon, so plan for the standard rates from 2027. Fourth, keep clean records. Late filing draws attention and can lead to penalties, while good records make the return simple and reduce the risk of errors.
Frequently Asked Questions
How much Corporate Tax did the UAE collect in 2025?
About Dh46.52 billion, for tax periods ending in the 2025 financial year. That is 33.9 per cent more than the Dh34.75 billion collected for 2024. Total Corporate Tax collected since the tax began now stands at about Dh81.27 billion.
What is the UAE Corporate Tax rate?
The rate is 0 per cent on taxable income up to Dh375,000 and 9 per cent on the part above Dh375,000. The tax applies to financial years starting on or after 1 June 2023 under Federal Decree-Law No. 47 of 2022.
When is the Corporate Tax return due?
The return and payment are due within nine months of the end of the tax period. A company with a financial year ending on 31 December must file and pay by 30 September of the following year.
What is the penalty for late Corporate Tax registration?
The fixed penalty is Dh10,000. Registration is mandatory for every taxable person, including businesses that expect to pay no tax. A waiver system exists, but owners should not rely on it.
Does Small Business Relief still apply?
Yes, for now. Businesses with revenue of Dh3 million or less can elect to be treated as having no taxable income, but only for tax periods ending on or before 31 December 2026. Unless the Ministry of Finance extends it, the relief will not apply to periods beginning in 2027.
How much VAT did the UAE collect in 2026?
VAT revenue distributed to the federal and emirate governments was about Dh28.27 billion for January to August 2026. Excise Tax over the same period was about Dh1.4 billion. No year-on-year comparison is possible, because the FTA gave no matching figures for the same period in 2025.
Disclaimer: This article is for general information only. It is not tax advice. Tax rules change, and your position may differ from the general rules described here. Always check the latest guidance on the Federal Tax Authority website (tax.gov.ae) or speak to a registered tax agent before you file a return or make a tax decision.
Sources: Federal Tax Authority announcement, 11 November 2026, as reported by the Emirates News Agency (WAM), Khaleej Times, Gulf News and The National; FTA 2025 Annual Report via WAM, 29 June 2026; Federal Decree-Law No. 47 of 2022; Cabinet Decision No. 75 of 2023 as amended by Cabinet Decision No. 10 of 2024; Cabinet Decision No. 49 of 2023; Ministerial Decision No. 73 of 2023.
Last Updated: 11 November 2026
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