UAE corporate tax collections jump 34% to Dh46.5 billion as more businesses file on time

Dubai: The UAE collected Dh46.52 billion in corporate tax for financial periods ending in 2025, a 33.9% increase from Dh34.75 billion a year earlier, as more businesses filed their tax returns and paid their dues on time, according to figures released by the Federal Tax Authority (FTA) on Wednesday.

The latest figures bring total corporate tax collections to approximately Dh81.27 billion for tax periods since the levy was introduced through the end of 2025.

The increase comes as the UAE's corporate tax system becomes an established part of business operations, requiring companies subject to the tax to calculate their taxable profits, submit returns and settle their liabilities within prescribed deadlines.

For businesses, the latest figures also show an improvement in compliance, although some companies continue to miss filing deadlines.

More companies meeting tax deadlines

The proportion of corporate tax returns filed on time increased to 91% in 2026, compared with 87% in 2025, the FTA said.

The on-time corporate tax payment rate reached 97%, indicating that the vast majority of payments covered by the authority's compliance measure were made within the required deadlines.

The improvement is significant for companies because filing a return and paying the tax owed are separate obligations. Businesses must meet both requirements to comply with the rules.

Under the UAE's corporate tax framework, taxable businesses generally pay 9% on taxable income exceeding Dh375,000, while taxable income up to that threshold is subject to a 0% rate. Different rules and reliefs may apply depending on the business.

Corporate tax returns and payments are generally due within nine months of the end of the relevant tax period.

VAT collections reach Dh28.27 billion

The FTA also reported that VAT revenue distributed to the federal and emirate governments reached approximately Dh28.27 billion for tax periods between January and August 2026.

Excise tax revenue for the same eight-month period amounted to approximately Dh1.4 billion.

VAT is generally charged at 5% on taxable goods and services in the UAE. Businesses registered for VAT collect the tax from customers and account for it to the FTA, subject to the applicable rules on input tax recovery.

Excise tax applies to specified products, including tobacco products, energy drinks and certain other goods covered by the UAE's excise tax legislation.

The authority did not provide comparable VAT or excise revenue figures for the same period in 2025, so the latest announcement does not establish how much those collections have increased year on year.

VAT, excise compliance also improves

The proportion of VAT returns filed on time rose to 83% in 2026 from 81% in 2025, while the on-time VAT payment rate reached 98%.

Excise tax compliance also improved, with 92% of returns submitted within the required deadlines, compared with 91% a year earlier. The on-time excise tax payment rate stood at 98%.

These figures show that payment compliance was higher than return-filing compliance across all three tax categories.

For companies registered for multiple taxes, each has its own reporting requirements and deadlines. Meeting corporate tax obligations does not replace the need to submit VAT or excise tax returns where applicable.

FTA focuses on awareness, compliance

Abdulaziz Al Mulla, Director General of the Federal Tax Authority, attributed the increase in collections and improved compliance to the authority's operations and efforts to develop its services.

"The growth in collected tax revenues, including the significant increase in Corporate Tax revenues, reflects the efficiency of the FTA's operations and its ongoing efforts to develop its procedures and services," he said.

Al Mulla said the authority would continue providing businesses with guidance on their tax obligations and maintaining communication with taxpayers.

"The Authority continues to raise tax awareness, strengthen its engagement with taxable persons, and provide the information and guidance needed to fulfill their obligations," he added.

The FTA said it would continue engaging with stakeholders to gather feedback and improve the administration of the country's tax system.

For UAE businesses, the latest statistics underline the importance of keeping accurate financial records, monitoring tax deadlines and ensuring that returns and payments are completed within the required periods.