The Gulf Magazine
TechSunday, 05 October 20252 min

640,000 firms now under UAE corporate tax as FTA reports record compliance

News Desk
Reporting by News Desk
640,000 firms now under UAE corporate tax as FTA reports record compliance
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The UAE’s Federal Tax Authority (FTA) has reported record levels of corporate tax compliance, with more than 640,000 businesses now registered for the new levy. The authority noted a strong performance in the filing of returns and settlement of payments within the required deadlines, indicating high levels of awareness among businesses.

Officials said the figures reflect the efficiency of the UAE’s tax legislation and its streamlined digital systems, which are designed to align with international best practices. The FTA praised corporate taxpayers for achieving compliance rates that it said exceed global benchmarks.

Digital Services and Official Response

Khalid Ali Al Bustani, Director General of the Federal Tax Authority, attributed the positive results to a combination of factors. “This high level of tax compliance has been achieved as a result of the growing tax awareness among business sectors, and due to the ease of steps provided by the Authority for filing returns and settling due taxes through the ‘EmaraTax’ platform,” he said.

Al Bustani noted that the digital platform delivers tax services around the clock and handled thousands of daily requests during peak filing periods, with additional support provided through the FTA Call Centre. He stated that all corporate tax procedures, from registration to payment, can be completed on the platform in a few minutes.

The EmaraTax system has been improved as part of the government’s Zero Bureaucracy programme, which aims to reduce administrative burdens and improve the user experience for businesses.

Awareness and Support Initiatives

Al Bustani said the UAE’s leadership has fostered a flexible and encouraging tax environment to support voluntary compliance. He highlighted a Cabinet Decision to exempt certain corporate taxpayers from administrative penalties for late registration, provided they complete the process within a specified timeframe.

The rise in compliance has also been driven by the FTA’s extensive awareness initiatives. A two-year national awareness plan involved 154 in-person and virtual sessions attended by 48,000 participants. The authority also provides detailed guides, videos, and other explanatory materials on its website, which are regularly updated to reflect new legislation.

To ensure businesses meet their obligations and avoid penalties, FTA specialists have contacted thousands of corporate taxpayers directly through calls, SMS reminders, and email notifications. The authority said these combined efforts have had a significant economic impact by simplifying compliance and supporting operational efficiency across the private sector.

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640,000 firms now under UAE corporate tax as FTA reports record compliance | The Gulf Magazine