Brief Information About the Federal Tax Authority in UAE

The federal tax authority in UAE runs VAT, excise and corporate tax for businesses across all Emirates. It registers taxpayers and processes returns and refunds. It can review records during desk reviews or full audits. 

It was established in 2016, so federal tax rules stay consistent and revenue sharing between Emirates stays organised. Knowing its role helps companies handle registration, penalties and questions with fewer surprises over the business journey.

How The Federal Tax Authority In UAE Started

Federal Decree-Law No. 13 of 2016 officially established the Federal Tax Authority as a separate legal body with its own budget and powers.

The law gave the Authority a clear mandate to:

• Administer, levy and implement federal taxes and related fines.
• Distribute federal tax revenues between the federal and local governments.
• Enforce the Tax Procedures Law that sets common rules for registration, filing, audits and penalties.

When VAT started in 2018 and excise tax came in on selected goods, the Federal Tax Authority in UAE became the daily reference point for businesses that needed to register, issue tax invoices and file returns. 

The corporate tax law that applies from financial years beginning in June 2023 kept that same model and made the Authority responsible for corporate tax administration as well.

Main Roles of The Federal Tax Authority

The role of federal tax authority in the UAE can be grouped into a few core functions that affect every registered business.

1. Administering Federal Taxes

The Authority administers VAT, excise tax and corporate tax at the federal level. It issues executive regulations, public clarifications and detailed guides that explain how each tax should work in practice.

2. Collecting And Enforcing Taxes

The Authority operates the EmaraTax portal, service centres and payment channels that let taxpayers register and pay due amounts. It also reviews returns and field audits, and can apply penalties when filings are late or incorrect.

3. Providing Support And Education

The federal tax authority roles in UAE include running webinars, e-learning programmes and detailed FAQ sections that help taxpayers understand new rules. The Authority also issues private clarifications when a business faces a grey area and asks for a binding view.

4. Coordinating With Other Bodies

The Authority works with the Ministry of Finance, customs authorities and economic departments so that tax registration, customs data and licensing processes support each other. For corporate tax, the Authority handles administration, while the Ministry of Finance remains the competent authority for treaties and international exchange of information.

Taxes Managed by The Federal Tax Authority in UAE

For day-to-day work, most businesses touch three key regimes that sit under the Federal Tax Authority.

Value Added Tax (VAT)

VAT at 5 percent applies to most supplies of goods and services in the UAE. The Authority sets rules on registration thresholds, tax invoices, filing cycles and input tax recovery.

Excise Tax

Excise tax applies to certain products such as tobacco, carbonated drinks and energy drinks. The Authority sets registration and warehouse rules and collects returns on imports, local production and stockpiles.

Corporate Tax 

Corporate tax applies at 9 percent on taxable income above a set threshold for most businesses, with 0 percent on lower profits and special regimes for qualifying free zone persons. 

The Federal Tax Authority in UAE runs registration, returns and guidance for this regime. Together these systems turn the Authority into a single window for most federal tax questions.

How the Authority Works in Practice

EmaraTax Portal

The EmaraTax portal handles:

• Online registration
• Return filing
• Payments and refund claims for VAT
• Excise and corporate tax. 

It runs around the clock and ties into local service centres that can help with registration or ID checks when needed.

FTA Offices and Contact Points

Official information lists the head office in Abu Dhabi and a strong presence in Dubai, with teams that oversee policy, audits and taxpayer support. Contact to the federal tax authority offices in UAE usually starts through the call centre, email channels or the feedback and inquiry forms on the website.

Guidance, Clarifications and Disputes

The Authority issues guides and public clarifications that explain how it reads the law on topics such as corporate tax free zone rules and VAT on real estate. If a taxpayer still feels unsure, they can apply for a private clarification that sets out the Authority’s view on a specific fact pattern.

Appeals follow the route set by the Tax Procedures Law, starting with reconsideration then moving to tax dispute resolution committees and, if needed, the courts.

Why the Federal Tax Authority Matters for Businesses

Recent figures show how central the Authority has become. By late 2025, news reports noted more than 640,000 corporate tax registrations, covering mainland and free zone entities across the country. That scale means the Federal Tax Authority in UAE touches almost every medium or large business and a growing share of smaller ones.

For finance teams, the Authority is not only a regulator. It is also a source of planning data. Clear thresholds, public guides and rulings help companies plan cash flow and structure investments with fewer surprises. Strong administration supports the wider goal of diversifying federal revenues away from oil and building a more predictable business environment.

Expert accounting and bookkeeping services play a useful role here. At Arnifi, we help interpret FTA rules for specific sectors, prepare documentation for audits and keep registrations, contracts and systems aligned with the latest guidance so that filings stay clean and penalty risk stays low.

FAQs

1. What is the Federal Tax Authority in UAE?

It is the federal body that administers, collects and enforces VAT and excise tax. It also collects corporate tax across all Emirate under Federal Decree-Law No 13 of 2016 and later tax laws.

2. Which taxes fall under the Federal Tax Authority?

The Authority manages value added tax on most supplies, excise tax on selected goods and corporate tax on business profitse.

3. How can a business contact the Federal Tax Authority?

Businesses can use the EmaraTax portal, call the 80082923 call centre during working hours or submit inquiries and complaints through the online forms on the official website.

4. Where are Federal Tax Authority offices in UAE located?

The Authority’s head office is in Abu Dhabi, with key operations also based in Dubai, and it works through government service centres and Tas’heel outlets across the Emirates.

5. Why should companies follow FTA guidance closely?

FTA guidance shows how the Authority applies tax laws in real cases. Following it helps companies reduce audit risk, avoid penalties and align VAT, excise and corporate tax planning with current federal policy.