UAE corporate tax revenue jumps by a third to Dh46.5bn in 2025

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Corporate tax revenue collected by the UAE rose by nearly 34 per cent in 2025, amid a rise in on-time compliance.The Federal Tax Authority collected approximately Dh46.5 billion…

Corporate tax revenues collected by the UAE rose by nearly 34 per cent in 2025, amid a rise in timely compliance, according to the Federal Tax Authority.

The authority collected approximately Dh46.5 billion ($12.7 billion) in corporate tax for tax periods ending in the 2025 financial year, up from Dh34.75 billion a year earlier.

That brought total revenues collected since the introduction of the corporate tax to the end of 2025 to Dh81.27 billion, the FTA said in a statement on Wednesday.

The federal corporate tax took effect on June 1, 2023, and was the most significant tax after the UAE introduced the 5 per cent value added tax in 2018.

VAT revenue distributed to the UAE federal government and the respective governments of the seven emirates for the tax periods between January and August 2026 amounted to about Dh28.27 billion, while excise tax over the same period amounted to Dh1.4 billion.

“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," FTA director general Abdulaziz Al Mulla said.

The FTA noted that the filing rate reached 91 per cent this year, compared to 87 per cent in 2025, as the on-time payment rate hit 97 per cent, signalling increased and improved participation from taxpayers.

The rate for the timely filing of VAT returns was at 83 per cent in 2026, up from 81 per cent last year, while its on-time payment rate rose to 98 per cent. The return filing rate for excise tax hit 92 per cent in 2026, compared to 91 per cent in 2025, with the on-time payment rate at 98 per cent.

“The authority continues to raise tax awareness, strengthen its engagement with taxable persons, and provide the information and guidance needed to fulfill their obligations," Mr Al Mulla said.

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