UAE Corporate Tax revenue rises 33.9% to AED 46.52 billion in 2025
FTA reports higher tax collections and improved compliance, with on-time Corporate Tax payments reaching 97% and VAT payments reaching 98%.
The UAE’s Corporate Tax revenue increased by 33.9% in 2025, reaching approximately AED 46.52 billion, compared with AED 34.75 billion collected for tax periods ending in 2024, according to figures released by the Federal Tax Authority (FTA) on November 11, 2026.
Total Corporate Tax revenue collected from the introduction of the tax until the end of 2025 stood at approximately AED 81.27 billion.
The FTA also reported that VAT revenue distributed between the Federal Government and the Emirate governments amounted to approximately AED 28.27 billion for the period from January to August 2026. Excise Tax revenue during the same period reached approximately AED 1.4 billion.
Tax compliance rates improve across categories
The Authority reported an improvement in timely tax return filing and payment rates across Corporate Tax, VAT and Excise Tax.
The on-time filing rate for Corporate Tax returns reached 91% in 2026, compared with 87% in 2025. The on-time payment rate stood at 97%.
For VAT, the timely return filing rate increased to 83% in 2026, up from 81% in 2025, while the on-time payment rate reached 98%.
Excise Tax return filing also improved, with the rate rising to 92% in 2026 from 91% in 2025. The on-time payment rate for Excise Tax stood at 98%.
The figures indicate improved compliance among taxable persons, particularly in meeting return filing and tax payment deadlines.
FTA attributes revenue growth to improved operations and awareness
Abdulaziz Al Mulla, Director General of the Federal Tax Authority, said the increase in tax revenues, particularly Corporate Tax collections, reflected the efficiency of the Authority's operations and its continued efforts to improve procedures and services.
He said the FTA was continuing to strengthen tax awareness and engagement with taxable persons by providing the information and guidance needed to meet their obligations. These initiatives, he added, support compliance with tax legislation and procedures while facilitating timely filing and payment.
Al Mulla also highlighted improvements in tax compliance and engagement with tax regulations, attributing the progress to greater awareness and a stronger tax culture.
He said the Authority would continue engaging with stakeholders across the tax sector to understand their feedback and suggestions and encourage their participation in the sustainable development of the UAE's tax system.
