UAE tax Brief – August 2026

1. Small Business Relief: Simplified CT Returns Due

  • Taxable Persons eligible for Small Business Relief must still register for Corporate Tax, file returns, and keep supporting records — the relief does not remove the filing obligation.

  • Businesses with a financial year ending 31 December 2025 must submit their Corporate Tax return and settle any tax due by 30 September 2026.

  • Small Business Relief applies where revenue has not exceeded AED 3 million in the relevant and all prior tax periods; eligible businesses must actively elect the relief in their return, which then qualifies them for a simplified filing.

  • Filing and payment are available 24/7 via the EmaraTax platform, directly or through FTA-approved tax agents.

2. Tourist VAT Refund Network Tops 19,300 Outlets

  • Retail outlets connected to the Digital Tourist VAT Refund System rose 5.9% to ~19,340 by end-June 2026 (up from 18,260 a year earlier); 449 outlets joined in H1 2026 alone.

  • Self-service refund kiosks reached 100, up from 93 — a 7.5% annual increase.

  • Noon e-commerce was integrated into the system, letting tourists claim VAT refunds on eligible online purchases made while in the UAE — a global first.

  • Planet’s smart refund app now supports 12 languages and displays the official AED dirham symbol.

  • Top beneficiary nationalities: India, Russia, Turkey, China, and the USA.

3. FTA & Dubai Police Seize 3.5 Million Excise Packages

  • Joint inspection campaigns with Dubai Police’s Criminal Investigation Department seized 3,587,315 non-compliant excise goods packages in H1 2026, with 59 seizure reports issued.

  • Associated tax dues and penalties totaled AED 82,064,198.

  • Officials highlighted the Raqeeb whistleblower platform as a complementary tool for reporting tax evasion.

  • Both entities reaffirmed continued cooperation on monitoring and inspection activity.

4. FTA Conducts 103,680 Inspection Visits, Up 21%

  • The FTA carried out ~103,680 field inspection visits across all emirates in H1 2026, up 21% from ~86,000 in H1 2025.

  • Teams seized 8.45 million non-compliant excise products, including 6.58 million tobacco/tobacco-product packages and 1.87 million other excise goods (carbonated drinks, energy drinks, sweetened beverages) — down overall from 17.6 million seized in H1 2025.

  • Associated tax dues and fines exceeded AED 174 million.

  • Inspections targeted compliance with tax invoicing, tax-inclusive pricing display, and payment of taxes on traded goods.

5. Awareness Events Reach Nearly 34,000 Participants, Up 23.3%

  • The FTA held 91 awareness events (in-person and virtual) in H1 2026, up more than 7% from ~85 events in H1 2025.

  • Participation grew to ~33,900 attendees, up 23.3% from 27,500 in H1 2025.

  • Virtual events alone drew 32,800 participants across 68 sessions (vs. 23,900 across 53 sessions in H1 2025).

  • Taxpayer awareness levels measured at 83.4%; beneficiary satisfaction rose to 94% (from 93%).

Disclaime

This newsletter is for informational purposes only and does not constitute professional tax advice. Please consult with a qualified tax professional for advice specific to your situation. The information provided is based on publicly available data and may be subject to change.

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