Last reviewed 31 August 2026
UAE tax updates that actually affect you
By Hamza Maghrabi · Last updated 31 August 2026
Summarised from Federal Tax Authority and Ministry of Finance announcements — no press-release padding, just what changed and what to do.
Deadline · corporate tax
December year-end? Your first corporate tax return is due 30 September 2026
Businesses whose financial year ended 31 December 2025 must file their corporate tax return and pay any tax due by 30 September 2026. That includes businesses electing Small Business Relief — the FTA confirmed on 3 August that SBR electors still file a (simplified) return by the same deadline. Don't leave it to the last week: run your numbers in the calculator and file through EmaraTax early.
Source: Federal Tax Authority
Extended · Small Business Relief
Small Business Relief extended to 2029 — three more zero-tax years
Ministerial Decision No. 131 of 2026, announced 7 August, extends Small Business Relief to tax periods ending on or before 31 December 2029 — three years beyond the original 2026 cut-off. The AED 3M revenue test and every other condition stay exactly the same, and you still elect it on each return. If your revenue is at or under AED 3M, that's zero corporate tax through 2029 — details in our Small Business Relief guide.
Source: Ministry of Finance · Ministerial Decision No. 131 of 2026
New · excise tax
Vape liquids get a minimum excise price of AED 1/ml from 1 September 2026
The Ministry of Finance has set a minimum excise price of AED 1 per millilitre for liquids used in electronic smoking devices, effective 1 September 2026. The 100% excise rate is unchanged — but tax is now calculated on at least AED 1/ml even if you sell for less. If you import or retail vape products, reprice and update your excise declarations before September.
Source: Ministry of Finance (announced 6 August 2026)
Deadline · e-invoicing
E-invoicing is coming: pilot starts July 2026, big firms go live 1 January 2027
The UAE's national e-invoicing system begins its pilot phase in July 2026 with the largest taxpayers. Businesses with revenue of AED 50M+ must appoint an accredited service provider by 30 October 2026 (extended from 31 July) and issue e-invoices from 1 January 2027. Everyone else follows by 1 July 2027. If you invoice B2B in the UAE, this touches you regardless of VAT registration.
Sources: Ministry of Finance · KPMG summary
New · multinationals
UAE names who has to file the Pillar Two return
On 25 August the Ministry of Finance issued Ministerial Decision No. 133 of 2026, setting out which entities must file a Pillar Two Information Return with the FTA under Cabinet Decision No. 142 of 2024. It covers UAE constituent entities (investment entities excluded), joint ventures and JV subsidiaries, and stateless reverse hybrid entities formed under UAE law, for financial years starting on or after 1 January 2025. A group can appoint one Designated Local Entity to file for all of them instead of every entity filing separately. No new tax was created here: the 15% Domestic Minimum Top-up Tax still applies only to groups with global revenue above €750M, and if you're an SME the 0% / 9% bands remain your regime.
Sources: Ministry of Finance · Khaleej Times
Reminder · freelancers
Natural persons over AED 1M turnover: you're in scope
Individuals conducting licensed business (freelancers, sole establishments) whose turnover exceeded AED 1M in a calendar year must register for corporate tax — the deadline is 31 March of the following year. Below AED 1M, or for salary and personal investment income, there's nothing to do.
Source: Federal Tax Authority