VAT and CIT work in very different ways. Here is what separates them and what each one means for your UAE business.

MD 131 extends Small Business Relief to Tax Periods ending on or before 31.12.2029, with the AED 3,000,000 threshold left unchanged.

SBR (Small Business Relief) gives qualifying UAE companies a 0% CIT rate, but the conditions are strict and the current threshold ends on 31.12.2026.

Cabinet Decision No. (129) of 2025 lowers several FTA administrative penalties and encourages businesses to correct tax record errors and submit voluntary disclosures at a reduced cost.

The programme is offering eligible businesses a non-refundable tax credit of up to 50% on qualifying expenditure.

Every VAT-registered business in the UAE must ensure its tax invoices meet the mandatory requirements, with stricter standards ahead as the country transitions to e-invoicing.

VARA (Virtual Assets Regulatory Authority) has been officially recognised as a competent authority under the UAE CIT (Corporate Income Tax) framework.

Cabinet Decision No. (1) of 2026 introduces a CIT (Corporate Income Tax) exemption for qualifying non-commercial sports entities in the UAE, subject to strict eligibility conditions and formal approval by the FTA (Federal Tax Authority).

New Cabinet Decision creates a unified legal framework for how the UAE exchanges tax information with foreign authorities, with clear obligations for businesses and individuals.

From 01.01.2026, the FTA introduces fees for Advance Pricing Agreement applications and replaces the paper registration certificate with an electronic version.