What does UAE's 2026 tax reform mean for you?

The UAE is preparing to roll out a major reboot of its tax procedures on January 1, 2026, aiming to make life easier for taxpayers while giving the Federal Tax Authority (ETA) stronger tools to ensure compliance.

- Issac John [e-mail]

At the heart of the reform is a push for clarity: clearer rules, clearer deadlines, and clearer expectations for both taxpayers and the FTA.

The changes come through new amendments to the Tax Procedures Law—issued under Federal Decree-Law No. 17 of 2025—and related tweaks to the VAT Law. Together, they mark one of the most significant updates to the country’s tax framework since VAT was introduced in 2018.

One of the biggest shifts is the introduction of a firm five-year window for refund claims. Under the current system, taxpayers with credit balances often face uncertainty about how long they have to request a refund.

Starting in 2026, the clock will be fixed—taxpayers will have up to five years from the end of the relevant tax period to apply for a refund or use the balance to settle other tax debts.