11 November 2026
UAE corporate tax collections for tax periods ending in the 2025 financial year reached about AED 46.52 billion, up 33.9% from about AED 34.75 billion a year earlier, the Federal Tax Authority (FTA) announced on Wednesday 11 November 2026. Total corporate tax collected since the tax was introduced, up to the end of 2025, stands at about AED 81.27 billion. Compliance improved as well: 91% of corporate tax returns were filed on time, up from 87% a year earlier, and 97% of payments were made on time. The rules have not changed: 0% on taxable income up to AED 375,000 and 9% above that threshold, with the return and payment due within nine months of the end of the tax period.
What the FTA announced
The FTA released three sets of figures at once: corporate tax collections, VAT and excise tax revenue for the first eight months of 2026, and on-time filing and payment rates for all three taxes. The headline number concerns corporate tax. Tax periods ending in the 2025 financial year brought in about AED 46.52 billion, compared with about AED 34.75 billion for tax periods ending in 2024. The increase is about AED 11.77 billion, or 33.9% (our calculation of the difference from FTA data).
The cumulative total since the tax was introduced, about AED 81.27 billion, is effectively the sum of those two years: 46.52 plus 34.75 gives exactly 81.27. In other words, all corporate tax collected so far relates to tax periods ending in 2024 and 2025.
For VAT, the FTA reported a different measure: the amount distributed to the federal government and the emirate governments for tax periods from January to August 2026, about AED 28.27 billion. Excise tax for the same eight months amounted to about AED 1.4 billion. The authority did not give comparable figures for the same period of 2025, so this announcement does not show year-on-year growth for VAT or excise tax.
H.E. Abdulaziz Al Mulla, Director General of the FTA, linked the growth in collected revenues, including the significant increase in corporate tax revenues, to the efficiency of the authority’s operations and its ongoing work to develop its procedures and services. He said the FTA will continue to raise tax awareness, strengthen its engagement with taxable persons and provide the information and guidance they need to meet their obligations.
Tax revenue and compliance in figures
| Indicator | Earlier | Latest |
|---|---|---|
| Corporate tax, periods ending in FY2024 and FY2025 | about AED 34.75 billion | about AED 46.52 billion (+33.9%) |
| Corporate tax, total since introduction to end of 2025 | not applicable | about AED 81.27 billion |
| Corporate tax returns filed on time | 87% (2025) | 91% (2026) |
| Corporate tax paid on time | not disclosed | 97% |
| VAT distributed, January-August 2026 | not disclosed | about AED 28.27 billion |
| Excise tax, January-August 2026 | not disclosed | about AED 1.4 billion |
| VAT returns filed on time | 81% (2025) | 83% (2026) |
| VAT paid on time | not disclosed | 98% |
| Excise tax returns filed on time | 91% (2025) | 92% (2026) |
| Excise tax paid on time | not disclosed | 98% |
For all three taxes, the on-time payment rate is higher than the on-time filing rate. The widest gap is in VAT: 83% of returns are filed on time, while 98% of payments are made on time.
How UAE corporate tax works
Corporate tax was introduced by Federal Decree-Law No. 47 of 2022 and applies to tax periods starting on or after 1 June 2023. The rate has two tiers: 0% on taxable income up to AED 375,000 and 9% on the amount above that threshold (Cabinet Decision No. 116 of 2022). Different rules and reliefs apply to certain categories of business.
The tax return must be filed and the tax paid no later than nine months after the end of the tax period. For companies whose financial year ended on 31 December 2025, the deadline was 30 September 2026. Filing and payment are done through the EmaraTax platform and are available around the clock, either directly by the company or through an approved tax agent.
Filing the return and paying the tax are two separate obligations, and each carries its own penalty. Under Cabinet Decision No. 75 of 2023, late filing of a return costs AED 500 for each month or part of a month during the first 12 months and AED 1,000 per month from the 13th month. Tax not paid on time attracts a penalty of 14% per year, calculated monthly. Failure to keep the required records costs AED 10,000.
Small businesses also file. A resident person whose revenue does not exceed AED 3 million in the current and all previous tax periods can elect Small Business Relief. It is treated as having no taxable income, but it must register, file a simplified return within the standard deadline and keep records proving its eligibility. Ministerial Decision No. 131 of 2026 extended the relief to tax periods ending no later than 31 December 2029.
What it means for companies in the UAE
The FTA figures show that corporate tax has become a routine part of doing business in the country rather than a novelty. For an individual company, the practical points are simple.
- The tax calendar runs from the end of your own financial year: nine months to file and pay, with no separate reminder required.
- Filing and payment are checked separately: paying on time does not protect against a late filing penalty.
- A company with revenue up to AED 3 million still files a simplified return if it wants to use Small Business Relief.
- VAT and excise tax registrants need separate returns and deadlines for each tax; corporate tax does not replace them.
- Records and source documents should be kept so that the FTA can verify revenue, taxable income and eligibility for reliefs.
Structure is a separate question. Tax outcomes for a mainland company and a free zone company differ, and it is better to consider them before registration. A detailed comparison is in our guide Mainland vs Free Zone company in the UAE, and we covered deadlines and penalties for the last filing season in our article on the 30 September 2026 corporate tax deadline.
How Atlant Capital can help
We provide accounting and audit services for companies in the UAE: bookkeeping throughout the year, financial statements, FTA registration and tracking of corporate tax and VAT return deadlines. For businesses entering the market, we handle company setup on the mainland or in a free zone and set up the financial year, bookkeeping and tax registration from the start, so the first return is not a surprise. We also help check whether a company qualifies for Small Business Relief and prepare the records that support it.
Conclusion
Corporate tax for 2025 tax periods brought the UAE about AED 46.52 billion, 33.9% more than a year earlier, and total collections since the tax was introduced have reached about AED 81.27 billion. The share of returns filed on time rose to 91%, with 97% of payments made on time. The 9% rate above AED 375,000 and the nine-month filing window remain unchanged, so the key task for a company is to meet both obligations on time: the return and the payment.
Source: Gulf News, Federal Tax Authority press release.
FAQ
How much corporate tax did the UAE collect for 2025?
According to FTA data published on 11 November 2026, corporate tax for tax periods ending in the 2025 financial year amounted to about AED 46.52 billion. That is 33.9% more than the about AED 34.75 billion collected for 2024 tax periods. Total collections since the tax was introduced, up to the end of 2025, are about AED 81.27 billion.
What is the corporate tax rate in the UAE?
A 0% rate applies to taxable income up to AED 375,000, and 9% applies to the amount above that threshold. Special rules apply to certain categories, for example companies using Small Business Relief. The FTA announcement of 11 November 2026 does not change the rate.
When is the UAE corporate tax return due?
The return must be filed and the tax paid no later than nine months after the end of the tax period. For a financial year ending on 31 December 2025, the deadline was 30 September 2026. Late filing costs AED 500 per month for the first 12 months and AED 1,000 per month after that.
Do I need to file a corporate tax return if no tax is due?
Yes. A company with revenue of no more than AED 3 million that uses Small Business Relief must register with the FTA and file a simplified return within the same nine-month deadline. The relief has been extended to tax periods ending no later than 31 December 2029.
