Author: Mahesh Maddu

The UAE tax enforcement landscape is changing rapidly in 2026. The Federal Tax Authority (FTA) significantly increased inspection activity in recent years, and new amendments under Federal Decree-Law No. 17 of 2025 have expanded its audit powers from 1 January 2026.
For most businesses, the standard audit limitation period remains five years. However, the FTA can now extend audits up to 15 years in cases involving tax evasion or failure to register. Businesses filing late refund claims may also face extended review periods. As Corporate Tax return cycles mature, many UAE companies are expected to experience their first FTA audits in 2025 and 2026.

The UAE has extended the deadline for businesses with annual revenue above AED 50 million to appoint an Accredited Service Provider (ASP) under the new UAE e-Invoicing framework. The new deadline is 30 October 2026, while the mandatory go-live date of 1 January 2027 remains unchanged.
This gives businesses more time to select the right provider, but not more time to delay implementation. Companies that postpone preparation may face serious operational risks, including ERP integration delays, invoice validation failures, and disruption to customer payments once mandatory UAE e-Invoicing rules take effect.

The UAE Domestic Minimum Top-Up Tax (DMTT) introduces a 15 percent minimum taxation framework for large multinational enterprise (MNE) groups operating in the UAE. The regime applies to groups with consolidated global revenue of at least EUR 750 million and aligns the UAE with the OECD Pillar Two global tax framework. Effective from financial years beginning on or after 1 January 2025, the rules create new compliance, reporting, and tax calculation obligations for affected businesses. This guide explains who falls within scope, how the DMTT is calculated, available relief mechanisms, filing timelines, and the implications for UAE free zone entities.