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Federal Tax Authority Issues New Guide on Scope and Registration for Top-up Tax on Multinational Enterprises

Thu, 08 Oct 2026

Federal Tax Authority Issues New Guide on Scope and Registration for Top-up Tax on Multinational Enterprises

Abu Dhabi, 7 October 2026: The Federal Tax Authority (FTA) has issued a new Top-up Tax Guide on Scope and Registration, providing detailed guidance to support Multinational Enterprise (MNE) Groups in understanding the application of the Top-up Tax on Multinational Enterprises in the UAE and their registration obligations under the relevant legislation.

The Guide provides guidance on determining whether an MNE Group falls within the scope of the Qualified Domestic Minimum Top-up Tax (QDMTT) Legislation. It outlines the conditions for MNE Groups to be in scope, the types of Entities that are subject to Top-up Tax and those that are not, as well as the registration process and applicable timelines for Entities subject to the legislation. It is intended for those responsible for the tax affairs of Entities that may be members of an MNE Group, as well as Tax Agents.

Additionally, the Guide provides practical explanations and examples to support understanding of the relevant requirements, including the treatment of different types of Entities, Permanent Establishments, Joint Ventures, Flow-through Entities, and Hybrid Entities. It further addresses the location of Entities and Permanent Establishments, registration requirements and procedures, and the filing of the Pillar Two Information Return.

The United Arab Emirates’ implementation of the Top-up Tax forms part of the OECD/G20 Two-Pillar Solution, which aims to address the tax challenges arising from the digitalisation of the economy. This includes the Global Anti-Base Erosion (GloBE) Model Rules under Pillar Two, which seek to ensure that in-scope Multinational Enterprise (MNE) Groups are subject to an effective tax rate of at least 15% in each jurisdiction in which they operate, through a Top-up Tax mechanism.

As part of its commitment to implementing the OECD/G20 Two-Pillar Solution and maintaining a fair and transparent tax system aligned with global standards, the UAE introduced legislation for the Qualified Domestic Minimum Top-up Tax (QDMTT) for Fiscal Years beginning on or after 1 January 2025.

The UAE’s Qualified Domestic Minimum Top-up Tax (QDMTT) enables the United Arab Emirates to preserve its primary taxing right over profits derived by Entities located in the country. The United Arab Emirates was listed in the OECD central record on 18 August 2025 with “transitional qualified” status. In addition, the QDMTT Legislation closely follows the Global Anti-Base Erosion (GloBE) Model Rules under Pillar Two issued by the Organisation for Economic Co-operation and Development.

Under the QDMTT Legislation, the Top-up Tax applies to Constituent Entities located in the United Arab Emirates that are members of a Multinational Enterprise (MNE) Group with annual revenue of EUR 750 million or more, as reflected in the Consolidated Financial Statements of the Ultimate Parent Entity, in at least two of the four Fiscal Years immediately preceding the Fiscal Year under consideration. Groups that conduct their activities exclusively within the United Arab Emirates do not fall within the scope of the QDMTT Legislation, irrespective of the amount of their revenue.

The issuance of this Guide reflects the Federal Tax Authority’s commitment to providing businesses with clear and practical guidance that supports their understanding of the UAE’s evolving tax framework and enables them to meet their obligations with confidence. The UAE’s implementation of Pillar Two reflects the vision of our wise leadership to maintain a competitive, transparent, and sustainable economic environment, while ensuring that the national tax system continues to develop in line with international best practices. Through comprehensive guidance and continued engagement with the business community, the Authority remains committed to supporting taxpayers and facilitating voluntary compliance.

The FTA emphasised that the Guide should be read in its entirety to gain a comprehensive understanding of the definitions, requirements, and interaction of the different rules. Entities that may form part of an MNE Group are encouraged to review their circumstances against the relevant requirements of the QDMTT Legislation and consult the Guide to understand the applicable scope and registration requirements. The Guide is available through the FTA’s official website at https://www.tax.gov.ae/en/default.aspx

Federal Tax Authority Participates in BRICS Tax Experts and Tax Heads Meeting 2026in New Delhi

Mon, 05 Oct 2026

Federal Tax Authority Participates in BRICS Tax Experts and Tax Heads Meeting 2026in New Delhi

FTA Delegation Highlights Importance of International Cooperation and Knowledge Exchange in Advancing Tax Administration

Abu Dhabi, 2026: The Federal Tax Authority (FTA) participated in the BRICS Tax Experts and Tax Heads Meeting 2026, held in New Delhi, India, bringing together Heads of Tax Authorities and tax experts from ten BRICS tax administrations to exchange expertise, discuss emerging challenges, and strengthen cooperation in tax administration.

The FTA delegation was headed by His Excellency Abdulaziz Al Mulla, Director General of the Federal Tax Authority, and included Saida Kaddoumi Osman, Policy Adviser at the Authority, and Meera Qassim, International Relations Senior Analyst.

Hosted by the Central Board of Direct Taxes (CBDT), Ministry of Finance, Government of India, the meeting brought together representatives from several Member States. Discussions focused on strengthening cooperation between BRICS tax administrations, with technology, administration, and people among the key themes addressed.

Speaking on the occasion, His Excellency Abdulaziz Al Mulla emphasised the importance of international cooperation and knowledge exchange in supporting the continued development of modern and efficient tax systems. He highlighted the value of platforms such as the BRICS working groups as well as BRICS Tax Experts and Tax Heads Meeting 2026 in enabling participating countries to exchange experiences, explore emerging trends, and identify practical approaches to shared challenges.

His Excellency said: “The Federal Tax Authority places great importance on strengthening international cooperation and exchanging knowledge and expertise with tax administrations around the world. Our participation in the BRICS Tax Experts and Tax Heads Meeting 2026provides an important opportunity to learn from diverse experiences, share best practices, and explore new approaches that can contribute to the continued development of tax administration.”

He added: “The UAE continues to advance an efficient, transparent, and technology-enabled tax system that supports economic growth and enhances the customer experience. International platforms such as BRICS provide valuable opportunities to deepen cooperation, strengthen professional relationships, and contribute to the development of tax systems that can respond effectively to evolving economic and technological developments.”

Federal Tax Authority Organises Joint Awareness Meeting for Accredited Service Providers and Persons Subject to the e-Invoicing System

Tue, 29 Sep 2026

With the participation of more than 700 attendees, providing an opportunity to select the appropriate Accredited Service Provider for each category
Federal Tax Authority Organises Joint Awareness Meeting for Accredited Service Providers and Persons Subject to the e-Invoicing System

• Abdulaziz Al Mulla: The e-Invoicing System enhances voluntary tax compliance through secure and effective digital mechanisms
• 30 October 2026 is the deadline for Persons subject to the System with revenues equal to or exceeding AED 50 million to appoint an Accredited e-Invoicing Service Provider
Dubai, 29 September 2026: His Excellency Abdulaziz Mohammed Al Mulla, Director General of the Federal Tax Authority (FTA), called on Persons subject to the e-Invoicing System to take the necessary measures to join the System, which simplifies, standardises, and automates invoicing processes through a secure electronic framework aligned with global best practices. It enables invoices to be issued, sent, and received in a structured electronic format for automated processing and real-time exchange, supporting smoother tax reporting to the Authority.
The call came during an expanded joint meeting organised by the FTA in Dubai, attended by approximately more than 700 participants from Accredited e-Invoicing Service Providers, companies and entities subject to the System, as well as FTA officials and experts. The meeting aimed to help participants select an appropriate Accredited Service Provider, while providing guidance on the legal and regulatory framework and explaining how to join the e-Invoicing System through the EmaraTax digital tax services platform.
His Excellency Abdulaziz Al Mulla said: “This meeting provides an opportunity to strengthen cooperation among stakeholders involved in implementing the System and Accredited e-Invoicing Service Providers. This cooperation will support the successful introduction of e-Invoicing, which we expect to represent a significant step forward in enhancing voluntary tax compliance through secure and effective digital mechanisms.
“Many key procedural steps related to the legislative and technological requirements, as well as the digital infrastructure needed to implement the System, have been completed. The System is being implemented in cooperation between the Ministry of Finance and the Federal Tax Authority as part of national efforts to adopt innoVATion and advance digital transformation across all sectors.”
He added: “During the pilot phase, we tested the readiness of the System ahead of mandatory implementation, focusing on the efficiency of integration procedures, the user experience, and the readiness of relevant parties to meet the requirements. We have also focused on phased implementation and continuous engagement with government and priVATe sector entities to help them prepare ahead of the deadlines for each phase.
“The Authority began preparations early and has worked closely with the Ministry to establish the foundations for a smooth transition through a phased implementation strategy and active stakeholder participation. This approach will help maximise the benefits of digital transformation.”
H.E. added, “strong participation from the business community and other stakeholders involved in the e-Invoicing System also reflected the level of interest in implementation. The turnout reflects the importance of raising awareness and providing clear information on implementation so that Persons subject to the System can prepare to meet their obligations.”
As part of its wider efforts to prepare the business community for e-Invoicing, the FTA has launched a proactive awareness campaign to help stakeholders understand the System and prepare for implementation. The Authority has conducted nine workshops for the business sector, while the Ministry of Finance has organised four awareness events with the participation of the FTA. Further awareness activities will be held to support a smooth transition to e-Invoicing.
The Authority confirmed that a Person subject to the e-Invoicing System whose revenues equal or exceed AED 50 million must appoint an Accredited Service Provider no later than 30 October 2026 and implement the System no later than 1 January 2027. A Person subject to the System whose revenues are less than AED 50 million must appoint an Accredited Service Provider no later than 31 March 2027 and implement the e-Invoicing System no later than 1 July 2027.
During the presentations, FTA representatives explained the importance of the e-Invoicing System in facilitating tax compliance and reducing tax evasion. Representatives also outlined the implementation timeline and the mechanisms and procedures designed to support business continuity and help businesses and relevant entities comply with the legislation.
They also covered the categories required to implement and join the System, the conditions and procedures for implementation, integration with the System, and actiVATion through the EmaraTax platform.
During the meeting, FTA representatives urged Persons subject to the System to begin taking the necessary steps promptly and avoid leaving preparations until the last minute. Businesses must first select an appropriate Accredited Service Provider, then contract and integrate with the provider before completing the required procedures through the EmaraTax platform. Failure to meet the implementation requirements may result in administrative penalties.

FTA: 30 September 2026 is the deadline for filing Tax Returns and paying Corporate Tax for the financial year ended 31 December 2025

Sat, 26 Sep 2026

FTA: 30 September 2026 is the deadline for filing Tax Returns and paying Corporate Tax for the financial year ended 31 December 2025

Abu Dhabi, 26 September 2026: The Federal Tax Authority (FTA) emphasised the need for all Taxable Persons subject to Corporate Tax whose Taxable Period ended on 31 December 2025 to file their Tax Returns and pay the Corporate Tax due no later than 30 September 2026.

Registration, Tax Return filing, and payment of Corporate Tax due can be completed around the clock through the EmaraTax digital tax services platform in clear and simple steps. Taxable Persons subject to Corporate Tax can file their Tax Returns directly through the platform or seek assistance from approved Tax Agents for Corporate Tax purposes, listed on the FTA’s website.

The Authority noted that Taxable Persons subject to Corporate Tax (including those eligible for Small Business Relief) are required to file their Tax Returns and pay the Corporate Tax due to the FTA within a period not exceeding nine months from the end of each Taxable Person’s Tax Period, to ensure efficient compliance with tax legislation and avoid penalties for late submission and other instances of tax non-compliance. Similarly, Exempt Persons required to register must also submit their annual declarations within a period not exceeding nine months from the end of their financial year.

The FTA clarified that maintaining all relevant documents that support the accuracy of information provided in Tax Returns or other required submissions is essential. These records enable the FTA to verify Revenue, Taxable Income, and eligibility for Small Business Relief for Corporate Tax purposes.

Failure by a Taxable Person subject to Corporate Tax to maintain the required records and all other information specified under the Tax Procedures Law and the Corporate Tax Law will result in the application of the relevant administrative penalties. Exempt Persons are also required to maintain records that enable the FTA to verify that they meet the conditions for exemption in accordance with the Corporate Tax Law.

The FTA called on Taxable Persons subject to Corporate Tax to review the Corporate Tax Law, the relevant Cabinet Decisions, and Ministerial Decisions, as well as the guides, Public Clarifications and other materials issued by the Authority, which are available on the FTA’s website at https://tax.gov.ae/en/default.aspx

Federal Tax Authority Calls on All Persons subject to Corporate Tax to File Their Tax Returns and Pay the Corporate Tax Due Within the Specified Timeframes to Avoid Late-Payment Penalties

Wed, 02 Sep 2026

Federal Tax Authority Calls on All Persons subject to Corporate Tax to File Their Tax Returns and Pay the Corporate Tax Due Within the Specified Timeframes to Avoid Late-Payment Penalties

Taxable Persons subject to Corporate Tax Whose Financial Year Ended on 31 December 2025 Are Required to File Their Tax Returns and Pay the Corporate Tax Due Before the End of September 2026

Those Eligible for Small Business Relief Are Required to File Simplified Tax Returns Within the Statutory Timeframe

Abu Dhabi, 2 September 2026: The Federal Tax Authority (FTA) calls on Taxable Persons to file their Tax Returns and pay the Corporate Tax due within a period not exceeding nine months from the end of each Person’s Tax Period, and Exempt Persons required to register to file their annual declarations to the FTA within a period not exceeding nine months from the end of their financial year.

Emphasising the importance of early preparation, the FTA urged Taxable Persons to prepare the documents required for filing Tax Returns and paying the Corporate Tax due, noting that this is a fundamental legal obligation that must be fulfilled to ensure compliance with the tax legislation. Exempt Persons required to register were also urged to prepare the documents required for filing their annual declarations within the applicable statutory timeframe.

The FTA emphasised that all Taxable Persons, including those eligible for Small Business Relief, whose financial year ended on 31 December 2025 must file their Tax Returns and pay the Corporate Tax due no later than 30 September 2026. The FTA confirmed that registration, Tax Return filing, and payment of Corporate Tax due are available around the clock through the EmaraTax digital tax services platform, using clear and simple steps. Taxable Persons can file their Tax Returns directly through the platform or seek assistance from approved Tax Agents listed on the FTA’s website.

Taxable Persons eligible for Small Business Relief must fulfil their compliance obligations under the Corporate Tax Law in each Tax Period. These obligations include registering for Corporate Tax, filing simplified Tax Returns, and maintaining all relevant documents supporting the accuracy of the information provided in their Tax Returns or any other documents required to be submitted. These records enable the FTA to verify Revenue, Taxable Income, and eligibility for Small Business Relief for Corporate Tax purposes.

The FTA explained that the records and documents that must be maintained and submitted with a Tax Return may vary depending on the nature of the Taxable Person’s business. However, there are essential documents that must be maintained, including, but not limited to, a record of the Taxable Person’s transactions during the Tax Period, an asset register including details of any purchases or disposals of assets, a record of the Taxable Person’s liabilities, and a record of shares or ownership interests held at the end of the Tax Period.

Failure to maintain the required records and any other information specified under the Tax Procedures Law and the Corporate Tax Law will result in administrative penalties in accordance with the relevant tax legislation. Persons exempt from Corporate Tax are also required to maintain records that enable the FTA to verify their exemption status in accordance with the Corporate Tax Law.

The FTA highlighted the importance of relevant Persons reviewing the Corporate Tax Law, its implementing decisions, and the related guides available through the FTA’s website at: https://tax.gov.ae/en/default.aspx.