Abu Dhabi gives 35 per cent discount for quick payment of traffic fines

Motorists can receive a discount on their traffic fines when they pay within two months of committing the traffic offence, Abu Dhabi authorities announced on Wednesday.

The emirate's police department urged motorists who have broken road laws to take advantage of the programme that allows them to obtain a 35 per cent discount for paying the fines within 60 days of the offence and a 25 per cent discount if they pay the fines between 60 days and one year.

Under Abu Dhabi’s traffic laws, offenders can also pay fines in interest-free instalments to avoid having their vehicles confiscated.

“The new initiative aims to encourage motorists to pay the traffic fines and make it easy to clear all their charges," said Brig Mohammed Dahi Al Humairi, director of traffic and patrols.

Motorists can pay traffic fines on the Abu Dhabi Police website or via the smart police app or Tamm app. Drivers can also pay directly at happiness and customer service centres.

They can also reduce charges if they use credit cards from the following banks: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, First Abu Dhabi Bank, Mashreq bank and Emirates Islamic Bank.

“The campaign will raise awareness about the early payment of offences and the payment channels," Brig Al Humairi said.

“[It] will include educational clips about the danger of traffic offences, distributing fliers on motorists as well as holding workshops to raise their awareness.”

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Age: 30

Position: Senior lab superintendent at Emirates Global Aluminium

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