What Are the New Tax Rule Changes to Be Kept in Mind by Businesses in the UAE in 2026?

The authorities of the UAE have been striving and implementing all the possible strategies, plans, and policies to enhance the transparency of the tax system and to provide a clear and fair insight to the public and taxable entities. The UAE has again issued some major updates regarding the tax procedures and rules, which would ensure the transparency and would also ensure that the taxable entities get all the benefits for which they are eligible. The new changes are focused on providing simplified refund procedures and timelines, ensuring proper and continuous application of the tax rules, and providing a clear idea of the deadlines that must be kept in mind by the taxable entities. These changes will be implemented from 1 st January 2026.

What Are the 5 Major Updates Regarding the Tax Procedures in 2026?

The changes that would be implemented are classified into 5 major updates, which are explained below. The businesses and the taxable entities must be aware of these 5 updates before they step into the new year of 2026.

Clear-cut rules and procedures for refunds

As per the newly issued law, the maximum time duration within which the refund can be claimed is 5 years for any of the tax credit balance or otherwise could also be used for settling the liabilities.

The businesses can acquire the benefits of managing the tax credits with much more prediction, providing a clear deadline and more flexibility in case of delayed credit processing.

Tax audits

There would be a stringent check on the taxable entities via tax audits, as from now onwards the FTA would have the right to conduct the tax audits even if the limitation period is passed. Hence, the entities must always be ready for any kind of tax audits by the FTA.

The businesses can ensure stronger protection; the FTA can ensure that there are no malpractices conducted and the state’s finances are protected.

Reach Out to Registered Tax Agents in UAE Now!

Continuous tax guidance

The FTA would provide the clear-cut instructions and the guidance that would be required by the taxable entities and other public as per the need. Hence, the FTA would issue the directions and procedures and would make sure to provide continuous guidance to the entities.

They would enable the businesses to ensure that the tax laws and rules are understood uniformly by everyone, thereby ensuring that there are minimal chances of risks and consistent procedures across all the applicable sectors.

Transitional relief for entities

The taxable entities having the 5-year period expired or which would expire by 1st January 2026 can apply for a one-year extension of the period. This would enable the businesses to get a second chance to apply for the credit refund. This would also be considered a fair treatment for those who delayed, along with providing financial clarity in the future.

Why are the amendments required?

As per the authorities, the amendments and the changes would ensure that the tax laws and rules are in the best interests of the taxpayers and the public and would also ensure more transparency. The changes would ensure that the tax laws are innovative as per the changing pace of the global markets.

The changes would ensure that there are low administrative burdens, increase the public confidence, provide more support to the competitive markets, and raise the UAE’s tax framework to an international level.

You can also read: How can businesses in the UAE benefit from the KSA-UAE Double Tax Treaty?

Embrace the Changes In Tax Rules With CDA

CDA’s best team of tax experts is always on standby to provide assistance to the taxpayers whenever required. The team is always ready to assist the clients regarding the new tax rules and regulations, thereby ensuring the compliance. The entities can approach the CDA to get more insights about the new amendments implemented and to ensure that a stringent tax framework is followed within the organization.

To know more about the amendments and the new tax rules, connect with CDA now!

Mitesh Maithia

Tax Manager

Mitesh is a Tax Professional with expertise in direct, indirect, and international taxation, including transfer pricing, since 2018. Passionate about making complex tax matters simple, he shares insights to help businesses stay compliant and forward-looking.