The United Arab Emirates has issued Federal Decree-Law No. (28) of 2025, introducing amendments to certain provisions of Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses (the “UAE Corporate Tax Law”). The Decree-Law has been published in the Official Gazette and is therefore effective from the date of publication.
Key amendments
The amendments primarily relate to the settlement of corporate tax liabilities through tax credits and incentives, as well as the mechanism for claiming refunds of unused or excess tax credits and incentives.
While the withholding tax rate continues to remain at 0%, and the specific nature of the incentives or reliefs has not yet been announced, the amendments appear to establish a legislative framework for the introduction of such incentives in the future.
Importantly, the amendments indicate that certain tax credits or incentives may be refundable, rather than being restricted to offsetting existing corporate tax liabilities.
Next steps
Further guidance on the scope, eligibility criteria, and practical implementation of these provisions is expected to be issued through Cabinet Decisions and executive regulations. Taxpayers are advised to continue monitoring future developments to assess the potential impact on their corporate tax position.