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.
"These efforts contribute significantly to enhancing their compliance with tax legislation and procedures and facilitate the timely filing of tax returns and payment of tax due.”
The UAE's introduction of corporate income tax was seen as a step that will not only help the Arab world’s second-largest economy broaden its revenue base, but will also help the country achieve its long and short-term economic growth objectives.
Analysts had said the move will increase the country's taxation scope beyond VAT and different custom duties and complements government efforts to diversify its economy from oil.
“Tax compliance and taxable persons’ engagement with tax legislation and procedures have also improved significantly, supported by greater awareness and a stronger tax culture," Mr Al Mulla said.
"The FTA remains committed to maintaining regular communication with stakeholders in the tax sector to understand their views and suggestions, and to strengthen their contribution to the sustainable development of the tax system.”
