The UAE’s tax landscape has evolved substantially in recent years, creating new requirements for organisations and increasing the need for stronger governance, reporting, and compliance frameworks.

While the UAE continues to offer an attractive and business-friendly environment, organisations must now navigate a broader and more complex framework of direct and indirect taxes. Although the UAE does not levy personal income tax, the Federal Corporate Tax regime has brought certain types of income earned by individuals and natural persons within scope.

Although the UAE’s Economic Substance Regulations (ESR) have been repealed as a standalone regime, many of their principles have been incorporated into the Federal Corporate Tax framework. Large multinational groups must also comply with Country-by-Country Reporting (CbCR) requirements and prepare for the Domestic Minimum Top-up Tax under Pillar Two, reflecting the UAE’s continued alignment with OECD transparency and base erosion standards.

The taxation of oil and gas companies, as well as branches of foreign banks, continues to be governed at the Emirate level, with limited interaction with the Federal Corporate Tax regime.

The introduction of Corporate Tax, the Domestic Minimum Top-up Tax, and the transition to e-invoicing signals a strategic shift towards greater transparency and the digitalisation of the UAE’s tax ecosystem.

The Federal Tax Authority (FTA) continues to oversee tax administration in the UAE, and organisations are increasingly expected to maintain accurate, timely, and compliant reporting.

How BDO in the UAE can support

BDO in the UAE provides compliance, advisory, and assessment support across a wide range of direct and indirect taxes, helping organisations manage their obligations and respond effectively to regulatory developments.

Our tax services in the UAE

• Direct taxes
  • Federal Corporate Tax and international tax, including double tax treaties
  • Emirate-level taxes
  • Domestic Minimum Top-up Tax (Pillar Two)
• Indirect taxes
  • Customs duties
  • Value Added Tax, including e-invoicing
  • Excise tax
• Transfer pricing
• Mergers and acquisitions
• International taxation
• Economic Substance Regulations (effective up to financial years ending on 31 December 2022)

Why businesses choose BDO in the UAE

• Partner-led engagement – senior involvement from start to finish, not handed to junior staff
• Deep UAE market knowledge – 55+ years serving businesses across all Emirates and free zones
• eInvoicing service provider – Ministry of Finance pre-approved, PEPPOL-enabled platform
• FTA-registered Tax Agent – direct representation before the Federal Tax Authority
• Part of BDO’s global network – cross-border expertise in 160+ countries

Supporting compliance in a changing tax environment

Our team advises on both current tax obligations and emerging regulatory developments, supporting organisations in maintaining compliance while adapting to the UAE’s evolving tax framework.