Tax Rules in Dubai 2026 Explained | Key Changes, Deadlines, and New Compliance Steps

Tax rules in Dubai 2026 are set to transform how refunds, audits, and compliance work for businesses. The new law introduces a fixed five-year deadline for refund claims this expands audit powers in specific cases, and gives the tax authority binding interpretive authority. Firms with credit balances, pending refunds or unsettled liabilities will need to act carefully to stay compliant under the revised framework.

1. Introduction

Tax rules in Dubai 2026 deserve close attention from business leaders, CFOs, and finance teams. Understanding the changes now can prevent costly surprises later and help align accounting practices accordingly. This post reviews the core updates under the new law and highlights what organisations should do to stay ahead.

2. What changes under the new law

The United Arab Emirates Ministry of Finance has issued Federal Decree‑Law No. 17 of 2025, which amends certain provisions of Tax Procedures Law (originally under Federal Decree‑Law No. 28 of 2022) & the amendments take effect on January 1, 2026.

Fixed Refund Deadlines

One of the most important changes relates to refunds or credit balances with the Federal Tax Authority (FTA). Under the updated law, any request for refund or use of credit against outstanding tax liabilities must be made within five years from the end of the relevant tax period.

In cases where the credit balance arises late, or during the final 90 days before expiry of that period, the law provides limited flexibility allowing a later refund request under certain conditions.

This new clarity will help businesses plan their finances and avoid losing entitlements due to ambiguous deadlines.

Expanded Audit and Assessment Powers

The amendments also refine limitation periods for audits and assessments. The default limitation continues to be five years from the end of the tax period.

However, in specific circumstances such as when a refund claim or credit balance application is submitted in the final year of that period the FTA may still carry out audits or issue assessments, even beyond the standard timeframe.

This change allows the authority to examine late refund claims or complex transactions, while ensuring businesses receive certainty when regular deadlines pass.

Binding Interpretations for Consistency

Another significant update empowers the FTA to issue official, binding directions on how specific tax provisions are to be interpreted and applied. These directions bind both taxpayers and the FTA itself. 

This is intended to reduce the risk of inconsistent rulings, uncertainty, or confusion in how tax laws are applied in different cases. For businesses operating across jurisdictions or managing complex tax situations, this clarity could prove valuable.

Transitional Provisions for Older Credit Balances

The amendments also include transitional relief for businesses with existing credit balances. If the five-year period for refund claims has already expired or will expire within one year of January 1, 2026, there will be a one-year window from that date to submit refund requests.

Moreover, in cases where the FTA has not yet issued a decision on a refund request, a voluntary disclosure may be submitted within two years from the date of filing.

These transitional rules ease the pressure on firms and prevent older legitimate claims from being lost due to timing constraints.

Scope: Applies to All Federal Taxes

Because the Tax Procedures Law governs administrative procedures for all federal taxes, the changes will affect entities subject to various taxes includes corporate tax, VAT (value added tax), excise tax, and other federal tax obligations.

This broad applicability means that nearly all businesses large or small, local or multinational must review their accounting practices, reconciliations, and refund strategies in light of the new law.

3. What this means for businesses operating under Dubai tax changes

• With a defined five-year window for refund claims, businesses can forecast cash-flow and tax positions more reliably under Tax rules in Dubai 2026.
  
• Firms holding credit balances must track expiry dates and act in time; otherwise legitimate credits may expire.
  
• Even after five years, if refund claims are made late or near expiry, audits may still be triggered. It pays to maintain clear records and documentation.
  
• Binding directions from the FTA should reduce divergent rulings but firms must stay updated on any issued interpretations to ensure compliance.
  
• Businesses with older credits should review their past tax years and apply for refunds within the additional one-year window.
  

Overall, the updated law underlines the importance of prudent tax-accounting practices in the UAE. The handling of credits, refunds, and liabilities needs a more proactive approach than before. The reforms bring structure and predictability beneficial to firms that treat tax not as an afterthought but as part of financial planning.

4. How Arnifi can help

Firms navigating these changes may benefit from professional support. Arnifi offers expert guidance on UAE taxation, helping businesses review historical credit balances, prepare refund claims, and stay compliant under Tax rules in Dubai 2026. Arnifi’s services include credit-balance reconciliation, audit preparation, voluntary disclosures, and liaising with authorities. With a partner like Arnifi, organisations can avoid inadvertent loss of refunds or exposure to post-limitation audits.

5. Conclusion

Tax rules in Dubai 2026 represent a meaningful shift in how refunds, audits, and compliance are handled. By establishing firm deadlines, clarifying authority, and providing transitional safeguards, the law offers better structure and predictability. At the same time, it demands more disciplined tax practices from businesses. For any firm operating in the UAE, now it is the time to review tax ledgers, reconcile credit balances, and prepare for the transition. Engaging qualified advisers such as Arnifi can make that process much easier and ensure full advantage of the updated regime. The future of tax compliance in the UAE looks clearer and firms that prepare early will benefit most.