The UAE’s Corporate Tax revenue surged by 33.9 percent in 2025, totaling approximately AED 46.52 billion, as reported by the Federal Tax Authority (FTA) on November 11, 2026. This marks an increase from AED 34.75 billion collected in 2024.
Federal Tax Authority reports improved tax compliance rates
According to the FTA, the cumulative Corporate Tax revenue since its introduction has reached around AED 81.27 billion by the end of 2025. The authority also disclosed that VAT revenue distributed between the Federal Government and the emirate governments amounted to approximately AED 28.27 billion from January to August 2026, while Excise Tax revenue during the same period was about AED 1.4 billion.
Timely tax return filing and payment rates have shown significant improvement. The on-time filing rate for Corporate Tax returns rose to 91 percent in 2026, up from 87 percent in 2025, with an on-time payment rate of 97 percent. For VAT, the timely return filing rate increased to 83 percent in 2026, compared to 81 percent in 2025, and the on-time payment rate reached 98 percent. Excise Tax return filing also improved, with a rate of 92 percent in 2026, up from 91 percent in the previous year, while the on-time payment rate stood at 98 percent.
Director General comments on tax revenue growth
Abdulaziz Al Mulla, Director General of the FTA, stated that the rise in tax revenues, particularly Corporate Tax collections, demonstrates the efficiency of the authority’s operations and its ongoing efforts to enhance procedures and services. He emphasized the importance of tax awareness and engagement, noting that the FTA is committed to providing necessary information and guidance to support compliance with tax legislation.
Al Mulla also pointed out that improvements in tax compliance and engagement with tax regulations are attributed to increased awareness and a stronger tax culture. The FTA plans to continue its collaboration with stakeholders in the tax sector to gather feedback and promote participation in the sustainable development of the UAE’s tax system.
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