UAE tax rule changes
Every rule change that affects our calculators and guides, with the source decision and the date it applies. We update this page whenever a new decision is published.
Updated on our site
Small Business Relief extended to 2029
Small Business Relief now applies to tax periods ending on or before 31 December 2029, instead of 2026. The AED 3 million revenue test is unchanged.
Source: Ministerial Decision No. 131 of 2026
Updated on our site
E-invoicing provider deadline for large businesses moved to 30 October 2026
Businesses with revenue of AED 50 million or more now have until 30 October 2026 (previously 31 July 2026) to appoint an Accredited Service Provider, and go live on 1 January 2027.
Source: Ministerial Decision No. 244 of 2025, as amended
Effective
New late payment penalties for VAT
For tax due from 14 April 2026, late payment is penalised at 14% a year of the unpaid tax, charged monthly, replacing the earlier 2% / 4% / 1%-a-day schedule.
Source: Cabinet Decision No. 129 of 2025
Effective
UAE R&D tax credit starts
For tax periods starting on or after 1 January 2026, qualifying R&D spend earns a tiered credit of 15%, 35% or 50%, up to AED 2 million a year, with Emirates R&D Council pre-approval.
Source: Cabinet Decision No. 215 of 2025
Effective
Sugar-based excise tax on sweetened drinks
Sweetened drinks moved from 50% of price to a tiered per-litre excise tax based on sugar content per 100 ml.
Source: Federal excise tax legislation, as amended for 2026
Effective
Domestic Minimum Top-up Tax for large groups
Multinational groups with consolidated revenue of EUR 750 million or more pay a top-up tax bringing their UAE effective rate to 15%.
Source: Cabinet Decision No. 142 of 2024