AED 46.52 billion — UAE corporate tax revenue rises 33.9%

Summary

• Corporate tax collections for 2025 tax periods reached about AED46.52 billion, up 33.9% year on year.
• Cumulative corporate tax revenue since the levy was introduced now stands near AED81.27 billion.
• Higher filing and payment rates point to a widening compliance base behind non-oil federal revenue.

The latest

Corporate tax revenues for tax periods ending in the 2025 financial year reached approximately AED46.52 billion, up 33.9% from about AED34.75 billion a year earlier, the Federal Tax Authority announced. Total corporate tax collected since the levy took effect through the end of 2025 came to roughly AED81.27 billion. The authority also reported higher on-time filing rates across all three taxes it administers.

Details

• The headline figure: The FTA said corporate tax collected for tax periods ending in the 2025 financial year amounted to approximately AED46.52 billion, against approximately AED34.75 billion for periods ending in 2024. That is a 33.9% increase, and the single largest contributor to the cumulative total reported since the tax began.
• The cumulative total: Total corporate tax revenue collected from the introduction of the levy through the end of 2025 stands at approximately AED81.27 billion, according to the authority. That implies the 2025 periods alone account for well over half of everything collected under the regime to date.
• VAT distribution: Value-added tax revenue distributed to the federal government and the emirate governments for tax periods between January and August 2026 amounted to approximately AED28.27 billion, the FTA said. The authority did not break down how that sum was split between the federal and emirate levels.
• Excise take: Excise tax revenue over the same January–August 2026 window reached approximately AED1.4 billion, the smallest of the three streams reported. The authority did not detail which excisable product categories drove the figure.
• Corporate tax compliance: The on-time corporate tax return filing rate climbed to 91% in 2026 from 87% in 2025, according to the FTA. The on-time payment rate for corporate tax reached 97%, the authority said, citing the numbers as evidence of improving compliance behaviour.
• VAT compliance: Timely VAT return filing reached 83% in 2026, up from 81% a year earlier, while the VAT on-time payment rate rose to 98%. VAT remains the weakest of the three taxes on filing punctuality despite being the longest established.
• Excise compliance: The excise tax filing rate edged up to 92% in 2026 from 91% in 2025, and the on-time payment rate hit 98%, the FTA said. Across all three taxes, payment punctuality now outpaces filing punctuality.
• The official line: Abdulaziz Al Mulla, Director General of the Federal Tax Authority, said the growth in collected revenues, including the significant rise in corporate tax, "reflects the efficiency of the FTA's operations and its ongoing efforts to develop its procedures and services."

Background

The UAE introduced federal corporate tax on business profits as part of a broader diversification of state revenue away from hydrocarbons, alongside the earlier value-added and excise taxes already administered by the Federal Tax Authority.

Between the lines

The jump is not only a profits story. With on-time corporate tax filing rising from 87% to 91% and payment at 97%, a larger share of registered businesses is now inside the collection cycle, meaning part of the 33.9% increase reflects a broadening base rather than company earnings alone. The gap between filing and payment rates across all three taxes suggests late paperwork, not unpaid liabilities, is the remaining friction point.

What's next

Watch the FTA's figures for the final four months of 2026, which will complete the VAT and excise year, and the next corporate tax cycle covering periods ending in the 2026 financial year.

Source: Emirates News Agency (WAM)