Stay informed on the latest 2025 FTA guidelines impacting your UAE Corporate Tax Return filings. Significant changes include the new 15% Domestic Minimum Top-Up Tax for large multinationals, updated tax grouping rules, and interest deduction caps aligned with international standards. The FTA also introduces refundable tax credits for high-value employment and R&D activities, stricter compliance on related-party financing, and mandatory IFRS financial statements for tax groups. Additionally, Sharjah’s new tax on extractive activities and upcoming e-invoicing requirements are key updates. Understanding these changes is essential to ensure accurate filing and avoid penalties under UAE Corporate Tax Law.
2025 UAE Corporate 10 Latest Updates
| Sr. | Changes | Effects |
| 01 | 15 % Domestic Minimum Top‑Up Tax (DMTT) | Applies from 1 Jan 2025 to MNEs with €750 m+ revenue in 2 of last 4 years, aligning with OECD Pillar Two |
| 02 | New Tax Grouping Rules (MD 301) | Effective for tax years starting 1 Jan 2025: clarified tax residency documentation, loss/interest carry-forward utilization, and financial statement requirements |
| 03 | Interest Deduction Caps Introduced | FTA guidance limits net interest deductions to 30 % of EBITDA; excess interest can be carried forward up to 10 years. De‑minimis of AED 12 m exempts SMEs |
| 04 | Related‑Party Financing Compliance Enhanced | Related‑party interest disallowed unless commercially justified and taxed at ≥ 9 % in recipient’s jurisdiction |
| 05 | Refundable Credit for High‑Value Employment | Starting 1 Jan 2025, companies hiring C‑Suite or specialists can claim tax credits against qualifying salaries |
| 06 | R&D Tax Credits | From 1 Jan 2026: refundable credit of 30–50 % for qualifying UAE R&D activities, subject to approval |
| 07 | Stricter Clarification & APA Framework (Decision No. 2 of 2025) | As of 1 Mar 2025: formal process for private/public clarifications, input‑tax apportionment approvals, and advance‑pricing agreements |
| 08 | Mandatory IFRS‑compliant Financials for Tax Groups | Tax groups must submit full suite of financial statements (income, cash flow, etc.) under IFRS |
| 09 | Sharjah Imposes 20 % Tax on Extractive Activities | From Feb 2025, Sharjah imposes 20 % CT on natural resource firms, with federal tax offset |
| 10 | E‑Invoicing | The UAE is implementing a mandatory e-invoicing system for VAT-registered businesses, starting in phases from Q2 2026. |
Staying updated with the 2025 UAE Corporate Tax Return and the latest FTA updates is key to compliance and avoiding penalties. File accurately and on time—consult our UAE tax experts today for trusted support!