The UAE’s tax framework is set for a significant update, as the Federal Tax Authority (FTA) has announced changes that will take effect on January 1, 2026. The new measures, part of Cabinet Decision No. 174 of 2025, will introduce new service fees and eliminate paper-based certificates, aligning with the nation’s broader digital transformation strategy.
New Fees For Advance Pricing Agreements
Under the revised framework, two new fees will be added to the FTA’s schedule of service charges. These will apply specifically to applications for unilateral advance pricing agreements.
The new charges will cover requests submitted for entering into such an agreement for the first time, as well as subsequent requests to renew or amend existing agreements. This change aims to streamline complex tax procedures for businesses operating in the UAE.
The Shift To Digital Certificates
A core component of the update is the complete phase-out of paper certificates. Fees for issuing certified paper tax registration certificates and warehouse keeper registration certificates will be eliminated.
In their place, the FTA will issue electronic registration certificates free of charge to all registered entities. These digital certificates will feature QR codes, enabling instant electronic verification of a company’s tax registration status. This move is designed to eliminate the reliance on physical documents, providing businesses with faster and more convenient access to tax services.
The authority stated that the changes are designed to enhance tax compliance and improve the efficiency and effectiveness of application procedures for taxable persons across the country.
About The Federal Tax Authority
The Federal Tax Authority (FTA) was established under Federal Law by Decree No. 13 of 2016. It is the government entity responsible for managing and collecting federal taxes and related fines, enforcing tax laws, and distributing tax-generated revenues in the UAE. The FTA is committed to supporting the UAE’s economic diversification and fiscal sustainability goals.
Source: Fast Company Middle East
