New UAE tax rules: What the changes mean, who they benefit

THE UAE'S NEW TAX TIMELINES AND RULES SIMPLIFIED - ALL YOU NEED TO KNOW

- BY JUSTIN VARGHESE Your Money Editor

The aim of the new tax rule is to tighten the system, reduce ambiguity, and give both taxpayers and the Federal Tax Authority (FTA) a clearer framework to work within.

The UAE introduced a fresh round of updates to its Tax Procedures Law. Federal Decree-Law No. 17 of 2025 amends the existing Tax Procedures Law (Federal Decree-Law No. 28 of 2022), and the new rules will take effect on January 1, 2026. The aim is straightforward: tighten the system, reduce ambiguity, and give both taxpayers and the Federal Tax Authority (FTA) a clearer framework to work within.

Refund deadlines clarified

The biggest changes deal with credit balances cases where a business has paid more tax than it owes. The updated law sets a clear five-year window from the end of the relevant tax period to request a refund or use that credit to settle other tax liabilities. This is the first time the timeframe has been defined so precisely.