The Ministry of Finance of the United Arab Emirates has introduced a significant package of tax-law amendments that will come into force on 1 January 2026. Federal Decree-Law No. 17 of 2025 updates tax-administration procedures, including rules for refunds, audits and interpretation of tax provisions.
The changes directly affect financial planning for companies and private investors. For those following real estate market news in Dubai today, the reforms are especially relevant – they create a more transparent environment for commercial real estate transactions, simplify VAT calculations, and strengthen the jurisdiction’s attractiveness to international buyers.
Five-year refund window and taxpayer protections
The law establishes a five-year limit for submitting refund requests or applying a tax credit toward outstanding liabilities. This is the first legislative rule to clearly define time limits for refunds across all federal taxes – corporate tax, VAT and excise. Exceptions are provided: copanies may submit claims even after the standard period if the credit balance arose withinmpanies may submit claims even after the standard period if the credit balance arose within the last 90 days of the limitation window. Transitional provisions also apply to older applications:
- Taxpayers whose five-year period expired before 1 January 2026
- Companies whose period ends within one year after that date
All of them receive an additional year to file refund requests starting January 2026.
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Expanded powers for the tax authority and unified standards
The Federal Tax Authority (FTA) is authorized to conduct audits after the limitation period – but only in specific cases, such as when a company files a refund request in the final year of the allowed timeframe. This ensures the ability to verify late claims while preserving predictability for compliant taxpayers. A fundamentally new tool is the introduction of binding FTA directives on the interpretation of tax norms. These directives will be mandatory for both taxpayers and the authority, eliminating contradictory interpretations and ensuring uniform application of the rules. For foreign buyers considering mortgage options for non-residents in Dubai, the reform brings greater clarity to tax matters related to property purchases. Standardised procedures simplify transaction calculations, while clear VAT-refund timelines make investment in Dubai property more predictable.
Impact on the business climate and international investment
The Ministry of Finance stresses that the reforms aim to modernise the tax ecosystem and strengthen business confidence. The changes affect all categories of federal taxes:
- Corporate tax (introduced in 2023)
- VAT, including registration and record-keeping
- Excise duties on taxable goods
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The amendments reduce administrative burdens, increase transparency and reinforce the UAE’s position as a global business hub. The government seeks to establish a tax environment that protects public-finance interests while ensuring fairness for investors. Experts note that the reform is part of a broader financial modernisation following the introduction of corporate taxation. The new rules enhance the UAE’s competitiveness compared to other financial centres in the region, offering foreign companies stable and clearly defined operating conditions
