UAE | Qatar | Oman
Corporate Tax
The Ministry of Finance (MoF) has announced amendments to Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures, following legislative update which entered into force on 1 January 2026.
The amendments clarify the below:
The amendments include clarifying the procedures governing the submission of voluntary disclosures and aligning them with the updated provisions of the Tax Procedures Law.
The revised regulation provides that refund procedures apply to any credit balance in favor of the taxpayer and updates the mechanisms for disclosure to competent government authorities, while reaffirming data confidentiality protections and defining the scope and limits of information use. The amendments also extend the record retention period by two additional years for tax periods linked to refund claims submitted before the statute of limitations expires, where no determination has yet been issued.
In addition, the regulation introduces the possibility of extending the period for the preservation or seizure of documents or assets for the purposes of tax audit and examination.
The ministry states that these measures enhance transparency, facilitate taxpayer compliance and safeguard taxpayers’ rights. The amendments enter into force on 1 April 2026.
New Corporate Tax Clarifications Issued
The FTA released additional corporate tax guidance in April 2026, including:
Public Clarification relating to directors and officers: On 29th April 2026 the FTA released Public Clarification CTP010 to clarify the Corporate Tax treatment of directors and officers in the UAE. The clarification provides guidance on whether director income constitutes a taxable business activity, addresses tax residency and place of effective management, and outlines the treatment of director remuneration.
Corporate Tax De-Registration: FTA issued an updated guide on 9th April 2026 outlining the procedures and requirements for deregistering from UAE Corporate Tax. The guidance covers circumstances for deregistration such as cessation of business activities or liquidation, along with applicable timelines, documentation, and compliance obligations.
VAT
Cabinet decision 129
The most significant update is the implementation of Cabinet Decision No. 129 of 2025, which officially took effect on April 14, 2026. This decision amends the administrative penalties for violations of VAT, Excise Tax, and Corporate Tax laws:
Reduced Fines: Several penalties have been reduced especially for first time offences and procedural non-compliance. The fine for failing to submit records in Arabic dropped from AED 20,000 to AED 5,000.
Late Payment Model: The previous “2% + 4%” late payment penalty has been replaced with a flat 14% per annum (non-compounding) rate, calculated monthly on the unpaid balance.
Voluntary Disclosures: Penalties for errors corrected via voluntary disclosure now attract a lower rate of 1% per month, encouraging proactive compliance.
Effective from the start of the year but highlighted in recent April guidance, Federal Decree-Law No. 17 of 2025 has standardized several procedural aspects:
5-Year Refund Window: Taxpayers now have a firm 5-year limit from the end of a tax period to claim refunds or apply for credits.
Unified Code: This law now serves as the single procedural reference for all three major taxes (VAT, Corporate Tax, and Excise Tax).
E-invoicing
The mandatory rollout begins later but in the month of April has seen increased activity in preparation for the July 2026 pilot phase. Businesses with revenue exceeding AED 50 million are currently being urged to finalize their Accredited Service Provider (ASP) appointments.
April has seen increased activity in preparation for the July 2026 pilot phase. Businesses with revenue exceeding AED 50 million are currently being urged to finalize their Accredited Service Provider (ASP) appointments. April’s preparation activity reflects broader ecosystem readiness for the pilot phase.
The UAE’s e-invoicing framework represents a significant operational shift, building on VAT (2018) and Corporate Tax (2024) reforms. The system adopts the DCTCE also known as “Five-Corner” model, where invoices are exchanged through Peppol-certified ASPs and reported to the tax authority for real-time compliance monitoring.
Critical implementation elements:
ASP integration requires system alignment with e-invoicing standards, data mapping validation, and testing of submission workflows. Early appointment enables adequate testing cycles before pilot phase initiation.
PINT-AE standard: The standardized invoice data dictionary defines transaction classifications including standard B2B invoices, credit/debit notes, self-billing, export transactions, and advance payments. Compliance with this framework is non-negotiable.
Input VAT implications: Invoices processed outside the official e-invoicing network may affect input VAT recovery. This extends beyond IT, it directly impacts cash flow and tax position.
Integration with VAT reporting: E-invoicing data will integrate with future VAT submissions, making invoice-level accuracy critical.
Business action items:
Organizations should conduct gap assessments against PINT-AE requirements, evaluate Peppol-certified ASP capabilities, and allocate resources for system integration. ASP appointment during April and May enables adequate testing, reducing the risk of compliance gaps or operational disruptions.
Stay compliant, stay competitive, act fast
GCC Updates
Qatar
Excise Tax Updates: On April 9, 2026, the General Tax Authority (GTA) introduced a new tiered volume model for calculating excise tax on sweetened drinks, replacing the previous calculation methodology to enhance tax efficiency and compliance.
Licensing Services: A new excise tax warehouse licensing service was launched on April 6, 2026, aimed at streamlining the storage and movement of excise goods and providing businesses with clearer regulatory requirements for handling excisable products in the UAE.
Oman
Digital Tax Stamps: The Oman Tax Authority issued reminders in April that the import of soft drinks and energy drinks without Digital Tax Stamps will be prohibited starting June 1, 2025.
Pillar 2 Progress: Oman continues to refine its legislative framework for the Domestic Minimum Top-up Tax (DMTT), with executive regulations regarding safe harbors and calculation methods expected shortly.
