UAE rule changes in 2026: a digest for business owners

Updated 29.10.2026. This is a living article: we add to it when the rules change.

2026 in the UAE passed without major reforms, but with many targeted changes that affect the budgets and reporting of small companies. The corporate tax relief was extended, the e-invoicing timeline was approved, the VAT penalty system changed, and banks reorganised their checks around the new AML law.

For the owner of a small company, the most important points are these: Small Business Relief now runs until 2029, and from 1 July 2027 almost every company will need an e-invoicing system. The other changes are mostly procedural, but they are worth knowing to avoid penalties.

Below we have grouped the changes by topic, with dates and links to detailed guides.

Key dates in one table

Corporate tax and Small Business Relief

Ministerial Decision No. 131 of 2026 extended Small Business Relief: the relief can be applied to tax periods ending no later than 31 December 2029. Before this decision the relief was due to end in 2026. The revenue threshold has not changed: AED 3 million for the current and every previous period.

What this means in practice: a company with revenue up to AED 3 million can pay 0% corporate tax for four more tax periods if it elects the relief in its return. FTA registration and an annual return remain mandatory, and the late registration penalty is still AED 10,000. Worked examples are in UAE Small Business Relief.

For free zone companies using the Qualifying Free Zone Person regime, Ministerial Decisions No. 229 and No. 230 of 2025 updated the list of qualifying activities, and Ministerial Decision No. 84 of 2025 clarified the audit requirements. See Qualifying Free Zone Person for how the regime works.

E-invoicing

The UAE Ministry of Finance has approved a phased move to e-invoicing for B2B and B2G transactions. The pilot started on 1 July 2026. Companies with revenue of AED 50 million or more switch from 1 January 2027. Everyone else must appoint an accredited provider by 31 March 2027 and switch to the system by 1 July 2027.

For a small company this is a new cost line in years two and three. It is worth choosing your accounting system with e-invoicing in mind, and the description of services on invoices should match the activity on your license.

VAT: amendments and penalties

Amendments to the VAT law have applied since 1 January 2026. Under the reverse charge you no longer need to issue an invoice to yourself, a 5-year deadline has been set for refunds of overpaid tax, and the FTA has gained the right to deny input tax recovery if a supply is part of an evasion scheme.

Since 14 April 2026, late payment penalties on VAT are calculated at 14% per year instead of the previous stepped scheme. Penalties for a number of errors in returns have been reduced. The mandatory registration threshold is unchanged: AED 375,000 of taxable supplies over 12 months. More in UAE VAT at 5%.

AML law and reporting

Federal Decree-Law No. 10 of 2025 replaced the 2018 law. It strengthened customer due diligence requirements and the personal liability of management. Fines for regulated entities range from AED 50,000 to AED 5,000,000 per breach.

Not everyone has to register with goAML, only financial institutions and DNFBPs: real estate agents, precious metals dealers, corporate service providers, auditors and accountants. IT, consulting and ordinary trading are not among them.

Economic Substance reports are no longer filed for periods from 2023, and penalties for those periods have been cancelled. A register of beneficial owners (UBO) is mandatory for all companies, with penalties for breaches from AED 20,000 to AED 100,000. Our accounting team keeps track of these filings for clients.

Visas and Emirates ID

Thresholds for long-term visas did not change in 2026:

What changed: since late 2025 the ICP catalogue has split services into separate cards, each with its own list of fees. There are now separate services for an entry permit for property investors and for a permit to stay abroad for longer than 6 months. Emirates ID fees are unchanged: AED 100 per year and AED 300 for a replacement. The 180-day rule for standard visas has not changed. An overview of all routes is in UAE residence visa types, and the application process is on our UAE residence visa page.

Banking

• In-app approval. At the Central Bank of the UAE's request, banks have moved away from one-time SMS codes to approving transactions in the mobile app.
• Minimum balance. The increase of the personal account threshold from AED 3,000 to AED 5,000 has been paused, and most banks keep it at AED 3,000.
• Subscription plans. Digital business banks have switched to monthly fees with no minimum balance.
• Checks after opening. Banks more often ask for documents on individual payments and for a KYC refresh every 1-3 years.
• Jaywan. The national card scheme issues cards for payments inside the UAE, but you still need Visa or Mastercard for travel.

Help with corporate and personal accounts is on our UAE bank accounts page.

Free zones and mainland

Under Executive Council Resolution No. 11 of 2025, companies in Dubai free zones can work on the Dubai mainland through a branch license or a temporary permit for up to 6 months. DET publishes the list of permitted activities. This is the main argument for Dubai zones for consultants and trading companies with local clients.

FAQ

Do I need to do anything because Small Business Relief was extended?

Nothing in particular. The relief is elected in each annual return. If your revenue is up to AED 3 million, check with your accountant whether electing it pays off given any losses from previous years.

Does e-invoicing apply to companies with no clients in the UAE?

The obligation covers B2B and B2G transactions. If you only invoice foreign clients, check with your accountant which transactions fall under the requirements.

Did visas get more expensive in 2026?

Federal ICP fees for the residence permit and Emirates ID are unchanged as of August 2026. Free zone package prices and agent fees change more often, so check them on the date you apply.

Does a consulting company need to register with goAML?

No, unless the company provides corporate services, audit or accounting to third parties.

Sources

• Federal Tax Authority, Corporate Tax and VAT: tax.gov.ae
• UAE Ministry of Finance, Small Business Relief and e-invoicing: mof.gov.ae
• UAE Ministry of Economy, AML and UBO: moec.gov.ae
• Federal Authority for Identity, Citizenship, Customs and Port Security: icp.gov.ae
• Central Bank of the UAE: centralbank.ae
• UAE legislation: uaelegislation.gov.ae
• UAE government portal: u.ae