UAE corporate tax revenue jumps by a third to Dh46.5bn in 2025

The Federal Tax Authority (FTA) in the UAE reported a significant increase in corporate tax revenue, jumping by nearly 34% in the 2025 financial year. The authority collected approximately Dh46.5 billion ($12.7 billion) in corporate tax, compared to Dh34.75 billion the previous year. This brought the total revenue collected since the introduction of corporate tax on June 1, 2023, to Dh81.27 billion by the end of 2025.

The federal corporate tax was introduced alongside the 5% value added tax in 2018, marking a significant shift in the UAE's revenue sources.

The improvement in tax revenues is attributed to enhanced efficiency in FTA operations and ongoing efforts to improve procedures and services. The filing rate for corporate tax reached 91% in 2025, up from 87% in the previous year, while the on-time payment rate hit 97%, indicating increased taxpayer participation. Similar positive trends were observed in VAT and excise tax compliance, with timely filing rates at 83% and 98% respectively for VAT in 2026, and 92% and 98% for excise tax.

Federal Tax Authority Director General Abdulaziz Al Mulla highlighted the authority's commitment to raising tax awareness, strengthening engagement with taxpayers, and providing necessary guidance to ensure compliance with tax regulations. These efforts have contributed to improved tax compliance and taxpayer engagement, fostering a stronger tax culture.

The introduction of corporate income tax is seen as a strategic step to broaden the UAE's revenue base and support its economic growth objectives, complementing efforts to diversify the economy beyond oil.