The UAE Corporate Tax regime has now entered a critical phase, transitioning from legislative rollout to active compliance and filings. As businesses move beyond initial registration and into filing cycles, 2026 marks a defining year where market behaviour, sector-specific challenges, and regulatory expectations are becoming clearer.
With the first wave of filings underway and increasing clarity from the Federal Tax Authority (FTA), companies must now shift focus from understanding the law to executing it effectively.
Background: UAE Corporate Tax Timeline & Filing Landscape
The UAE introduced Corporate Tax through Federal Decree-Law No. 47 of 2022, with implementation effective from financial years starting on or after 1 June 2023.
Key milestones:
- 2023: Law introduced and initial awareness phase
- 2024: Registration and system readiness
- 2025-2026: First round of tax filings and compliance cycles
For most companies:
- First filings are being completed during 2025-2026, depending on financial year-end
- Businesses are now entering repeatable compliance cycles
Market Adoption & Filing Trends in the UAE
The UAE Corporate Tax regime has seen strong adoption in its first filing cycle, reflecting a clear shift from regulatory awareness to active compliance.
- Completed corporate tax registration reached to c. 378,000 in 2025 and 444,000 in 2024, compared to around 50,000 in 2023.
- The competent committee approved 47 requests for outstanding administrative fines to be paid in instalments, amounting to AED 376.28 million.
- Tax dues and fines of AED 348 million was detected during inspection visits conducted by the Authority in 2024.
- The FTA contacted 72,000 VAT registrants with overdue returns, totaling more than 131,000 tax returns.
- High levels of compliance observed, with filings and payments completed within prescribed timelines
- EmaraTax platform enabling scale, handling large volumes of filings efficiently
The figures, in accordance with official guidelines, may be referenced from the latest annual report issued by the Federal Tax Authority (FTA) – the Annual Report 2024.
Beyond these numbers, the market is now transitioning from registration to operational execution, with businesses increasingly focusing on:
- Strengthening documentation and audit trails
- Addressing transfer pricing and related party disclosures
- Evaluating free zone eligibility and tax positions
- Aligning finance processes with Corporate Tax requirements
Sector-Wise Insights: Process, Challenges & Recommendations
| Sector | How the process looks | Key challenges | Recommendations |
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| Real Estate |
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| Healthcare |
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| Manufacturing |
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| Investment & Holding Companies |
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Corporate Tax Health Check: What Businesses Should Revisit in 2026
As we move from first-time compliance to repeat filing cycles, many businesses are now identifying practical gaps in their first filings. The FTA’s Corporate Tax Return Guide provides detailed guidance on filing requirements, schedules, tax adjustments, and supporting documentation, while the Transfer Pricing Guide highlights the need for arm’s length pricing and proper documentation for related party and connected person transactions.
Common areas where companies may need a tax health check include:
- Incorrect taxable income adjustments:
Companies may have started with accounting profit but missed adjustments for non-deductible expenses, exempt income, unrealized gains or losses, or provisions.
- Related party and transfer pricing gaps:
Businesses may not have properly identified related party transactions, connected persons, management charges, shareholder payments, intercompany loans, or supporting arm’s length documentation. The UAE Corporate Tax Return Guide includes important guidance on transfer pricing disclosures and related party transactions.
- Free zone classification errors:
Some free zone companies may have assumed 0% tax treatment without fully testing qualifying income, excluded activities, substance, audited financial statements, and compliance requirements.
- Incorrect treatment of group expenses:
Shared costs, head office charges, owner expenses, director remuneration, and intercompany allocations may not have been documented or allocated consistently.
- Weak documentation and audit trail:
A filed tax return is only as strong as the working papers behind it. Businesses should retain reconciliations between financial statements, taxable income, VAT turnover, related party schedules, and supporting invoices.
- Portal and filing data mismatches:
Companies should review TRN details, financial year, license information, shareholder details, activity classification, and EmaraTax data to avoid inconsistencies between registrations, VAT records, and CT filings.
Kuvera supports businesses across the full Corporate Tax lifecycle:
- Regulatory interpretation and applicability assessment – entity type, free zone presence, and group structure
- Financial impact analysis and tax modelling – quantifying your tax exposure and identifying legitimate planning opportunities within the parameters of the law
- Policy design and documentation – establishing internal governance frameworks aligned with FTA compliance expectations and audit readiness
- Transfer pricing – designing arm’s length frameworks, maintaining requisite documentation, and meeting disclosure obligations under the UAE Transfer Pricing regulations
- Filing support and ongoing advisory – managing your EmaraTax obligations and evolving FTA guidance
- Corporate Tax health checks – an independent review of your filing positions, applied exemptions, elections made, and supporting documentation to surface gaps and strengthen your approach for any future filings
Vivek Batra
Founder and Managing Partner
Manisa Agrawal
Head of M&A Tax and Compliance