Corporate tax collections in the UAE rose sharply last year, with the Federal Tax Authority (FTA) reporting revenues of approximately AED 46.52 billion for tax periods ending in 2025, up from AED 34.75 billion for the equivalent periods in 2024.
That represents growth of 33.9 per cent year-on-year. Since corporate tax was introduced, total cumulative revenues through end-2025 have reached approximately AED 81.27 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. The Authority continues to raise tax awareness, strengthen its engagement with taxable persons, and provide the information and guidance needed to fulfill their obligations. 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. Tax compliance and taxable persons’ engagement with tax legislation and procedures have also improved significantly, supported by greater awareness and a stronger tax culture. 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,” Abdulaziz Al Mulla, Director General of the Federal Tax Authority said in a statement.
The FTA also released VAT and excise figures covering January to August 2026. VAT distributed to the federal government and emirate governments over that period reached approximately AED 28.27 billion, while excise tax collections came to approximately AED 1.4 billion.
Compliance metrics improved across all three tax types. The on-time corporate tax return filing rate rose to 91 per cent in 2026, up from 87 per cent in 2025, with on-time payment reaching 97 per cent. VAT filing compliance edged up to 83 per cent from 81 per cent, with a 98 per cent on-time payment rate. Excise tax filings hit 92 per cent, versus 91 per cent the prior year, also with a 98 per cent payment rate.
