News & Insights/Abu Dhabi (UAE) Regulatory & Tax Updates (2026)
Regulatory & Tax3 min read
UAE — Abu Dhabi

Abu Dhabi (UAE) Regulatory & Tax Updates (2026)

From the 9% federal corporate tax threshold to mandatory e-invoicing and Emiratisation penalties — here is what businesses operating in Abu Dhabi need to know in 2026.

Corporate Tax

The federal corporate tax rate is 9% on taxable income above AED 375,000, and 0% on income below that threshold.

VAT

Input tax credits now expire after 5 years, effective from 2026. Businesses should review outstanding credit positions promptly.

E-invoicing

Mandatory e-invoicing rollout begins mid-2026. Companies must ensure their billing systems are compliant ahead of the deadline.

Emiratisation

Penalties for non-compliance have increased to AED 108,000 per missing Emirati employee per year, reinforcing the government's commitment to local workforce participation.