The Federal Tax Authority (FTA) Board of Directors has approved new operational policies for calculating excise tax on sweetened drinks and reviewed the successful implementation of the UAE’s corporate tax system, which has recorded one of the highest compliance rates globally.
The meeting was chaired by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, and Chairman of the FTA Board. Sheikh Maktoum stated that the UAE’s tax system has achieved major milestones,
“further consolidating its role in supporting financial sustainability and enhancing the country’s global competitiveness.”
Under the new policy, a tiered volumetric model will link the excise tax rate directly to the amount of sugar in beverages. The FTA confirmed that it is developing the necessary electronic systems and awareness campaigns to ensure a smooth transition for businesses ahead of the implementation, a move aimed at promoting public health by encouraging lower sugar consumption.
The Board also reviewed a detailed report on corporate tax, revealing that registrations exceeded 651,000 by the end of September 2025. This high compliance rate was attributed to the efficiency of the ‘EmaraTax’ digital platform, which seamlessly handles thousands of daily submissions.
As of September 2025, the UAE’s tax ecosystem included:
Additionally, the FTA approved Dh115.4 million in VAT refunds to UAE citizens for newly built homes during August and September 2025.
His Highness was also briefed on the E-Invoicing Project, a joint initiative with the Ministry of Finance, and directed the Authority to accelerate digital transformation under the ‘Zero Digital Bureaucracy’ initiative. This aligns with the government’s broader strategy of using technology to improve services, such as the recently launched AI system to automate work permit approvals.
The successful implementation of these tax policies is a key component of the nation’s long-term financial strategy, complementing significant fiscal planning like the recently approved record federal budget for 2026.
