Cost of CapitalData
UAE corporate tax collections reach Dh46.5bn in 2025, up 34%
Federal Tax Authority reports improved compliance as on-time filing rate rises to 91 per cent.
The Federal Tax Authority collected Dh46.52 billion in UAE corporate tax for financial periods ending in 2025, a 33.9 per cent increase from Dh34.75 billion in 2024, according to figures released on Wednesday. The authority reported that the on-time filing rate for corporate tax returns reached 91 per cent in 2026, compared with 87 per cent in 2025, while the on-time payment rate stood at 97 per cent. Total corporate tax collections since the levy was introduced through the end of 2025 reached approximately Dh81.27 billion.
Filing and payment compliance rates#
The proportion of corporate tax returns filed within prescribed deadlines rose to 91 per cent in 2026 from 87 per cent the previous year, the Federal Tax Authority stated. The on-time payment rate for corporate tax reached 97 per cent, indicating that the majority of payments covered by the authority's compliance measure were made within required deadlines. Under the UAE's corporate tax framework, taxable businesses generally pay 9 per cent on taxable income above Dh375,000, with a 0 per cent rate applying to taxable income at or below that threshold. Returns and payments are generally required within nine months following the end of the relevant tax period.
VAT and excise tax collections#
The authority distributed approximately Dh28.27 billion in VAT revenue to the federal and emirate governments for tax periods running from January through August 2026. Excise tax revenue for the same eight-month period amounted to approximately Dh1.4 billion. The on-time filing rate for VAT returns rose to 83 per cent in 2026 from 81 per cent in 2025, while the on-time VAT payment rate reached 98 per cent. VAT is generally charged at 5 per cent on taxable goods and services in the UAE. The excise tax covers specified products, including tobacco, energy drinks and certain other goods listed in the UAE's excise tax legislation.
Compliance across tax categories#
Excise tax compliance improved, with 92 per cent of returns submitted within required deadlines in 2026, compared with 91 per cent in 2025, the Federal Tax Authority stated. The on-time excise tax payment rate stood at 98 per cent. Payment compliance was higher than return-filing compliance across all three tax categories, the figures show. For companies registered for multiple taxes, each has its own reporting requirements and deadlines. The corporate tax took effect on 1 June 2023 and was introduced after the UAE implemented the 5 per cent value added tax in 2018.
Sources2 sources across 2 domains
- gulfnews.comGulf NewsCorporate tax collections of Dh46.52 billion for 2025, 33.9% increase from Dh34.75 billion in 2024, on-time filing rate of 91% in 2026 versus 87% in 2025, on-time payment rate of 97%, VAT revenue of Dh28.27 billion and excise tax revenue of Dh1.4 billion for January-August 2026
- thenationalnews.comThe NationalTotal corporate tax collections of Dh81.27 billion since introduction through end of 2025, corporate tax effective date of 1 June 2023, VAT introduction in 2018, compliance rates for VAT and excise tax
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