I recently recalled something I learnt when attending law lectures at college. It related to the 600-page UK Companies Act of 1985.
Like most legislation, it was not an easy document to review. The language is turgid, it's filled with cross-references and is ultimately suited to certain professions that ensure its retention for advisory services.
But what struck me was one of its core purposes: to consolidate disparate British company law into a single act of Parliament. This combined its previous edition, court decisions, parliamentary amendments, departmental clarifications and any compliance with external bodies.
Critically, it meant the business community could put down their proverbial jigsaw pieces of law and begin with a single source. I have spoken regularly in these columns about why corporate tax law in the UAE is akin to trying to complete what often feels like a puzzle.
The UAE first announced the launch of corporate tax in early December 2022 and a flurry of legislation from the three authorised regulatory bodies has been and continues to be released since. Some court decisions have also appeared.
As an example, the recently gazetted Ministerial Decision No 230 of 2025 lists 13 organisations that are formally permitted to operate as recognised price-reporting agencies. Excluding legislative references that are part of any law’s preamble, what remains is only 97 words. Additionally, keep in mind that some recent releases have reversed or amended small elements of earlier legislation.
After three years, would it help to consolidate all the primary legislation, subsequent clarifications and court decisions into three updated laws? Why three? This recognises the UAE constitutional legal structure that sees cabinet decisions take priority over ministerial decisions, which, in turn, take priority over Federal Tax Authority decisions.
What would be the commercial benefits of such a move?
First and foremost, it would be a great leveller. All entities could come to one legislation, and, at a point in time, have confidence that all that one needs to know is contained in it.
Yes, there is still the matter of understanding the articles that apply to your entity and then implementing and managing ongoing compliance. That continues to be your responsibility as a registered taxable person.
Also, it helps in understanding certain rules. An amateur reader who finds what appear to be similar rules in two places could be confused as to whether they are meant to be instructions for different things. This can lead to inaction or the incorrect application of a rule.
Changes or deletions of specific elements of earlier laws are part of the normal evolution that one sees in all countries, but it leaves redundant clauses and wording that can accidentally be read as fact. Consolidation offers a chance to both clarify and simplify wording.
The Federal Tax Authority has done a stellar job for the last couple of years of releasing long form explanatory documents that explain often complex law with practical examples.
Having consolidated legislation could also support the courts to make quicker decisions. The entities that created the laws can refine them further, while also taking inputs from internal and external experts. I know the latter occurs both formally and informally, and assume protocols exist to support the former.
Having proved the business case, we can then move to a conversation about how often such an exercise should take place. I would suggest a level of legislative fragmentation would be the trigger.
But why stop with corporate tax? It’s been even more years since VAT and excise duty were introduced. Conducting the same exercise with these would be two more additional initiatives welcomed by the UAE’s business community.
