The UAE Federal Tax Authority (FTA) has announced the approval of new operational policies for calculating excise tax on sweetened beverages, alongside impressive results from the country’s corporate tax rollout — one of the highest compliance rates globally.
Tiered Excise Tax on Sweetened Drinks
During the latest FTA Board meeting, chaired by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, the Authority confirmed plans to implement a tiered volumetric model for sweetened drinks.
This new structure will link tax rates directly to the sugar content of beverages, encouraging companies to reduce sugar levels and promote healthier consumption habits among residents. The FTA also noted that digital systems and awareness campaigns are being developed to ensure a smooth transition before the policy takes effect.
Exceptional Corporate Tax Compliance
The Board reviewed a detailed update on corporate tax implementation, showing that more than 651,000 businesses have registered by the end of September 2025 — reflecting strong compliance and confidence in the UAE’s tax framework.
The success is largely attributed to the EmaraTax digital platform, which efficiently handles thousands of filings daily, ensuring seamless registration, return submission, and payment processing even during peak periods.
UAE Tax Statistics (as of September 2025)
- Corporate Tax Registrants: 651,000
- VAT Registrants: 547,000
- Excise Tax Registrants: 1,777
- Registered Tax Agents: 806
Additionally, the FTA approved AED 115.4 million in VAT refunds for UAE citizens who constructed new homes during August and September.
Driving Digital Transformation
The meeting also covered updates on the E-Invoicing Project, a joint initiative by the Ministry of Finance and the FTA, highlighting progress on legislative frameworks and system readiness. The Board approved the FTA’s 2026 budget and endorsed several resolutions focused on policy and operational improvements.
Sheikh Maktoum reaffirmed the government’s commitment to advancing the UAE’s ‘Zero Digital Bureaucracy’ initiative, emphasizing continuous digital innovation to enhance customer experience, streamline operations, and strengthen the UAE’s global reputation in tax administration.
He further underlined the importance of sustaining modernization efforts to support financial sustainability and long-term economic growth, reinforcing the UAE’s position as a leader in efficient and transparent tax systems.
