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May 08, 2026

UAE Tax Updates May 2026, What Finance Leaders Need to Act On Now

From VAT refunds for UAE nationals to new Corporate Tax accountability rules and the FTA’s new self-assessment tool, here’s your plain-English breakdown of the latest UAE tax changes.

The Federal Tax Authority has been busy. Three significant updates have landed in the past few weeks, covering VAT refunds for UAE nationals, Corporate Tax accountability, and a new self-assessment tool that every business should know about. There’s also a notable development from Saudi Arabia that matters for any business with GCC operations.

None of these is headlines for the sake of headlines. Each one has practical implications for how your business operates, who is accountable for what, and in some cases, whether money you’re entitled to is sitting unclaimed.

Here’s what you need to know.

1. VAT Refunds for UAE Nationals Building New Homes, Are You Leaving Money on the Table?

If you’re a UAE national who has recently built or is currently building a new private residence, there is a formal VAT refund mechanism available to you, which covers more than most people realise.

What’s eligible for a refund

The refund applies to VAT paid on building materials such as; bricks, tiles, built-in kitchen units, central air conditioning, doors, and sanitary units, as well as VAT on contractor services, including builders, architects, and engineers.

What’s not eligible is equally important to understand: furniture, appliances, landscaping, swimming pools, and any removable items fall outside the scope of the refund. The boundary is essentially between what’s built into the structure and what’s brought in afterwards.

How to apply

Applications are submitted through the FTA’s Maskan app or the EmaraTax platform. You’ll need your Emirates ID, Family Data (the digital alternative to the Family Book), a property completion certificate, a site plan, proof of land ownership, and a bank letter with your IBAN.

Two points on the bank letter worth flagging: this must be an official letter from your bank and not a screenshot, not a statement. This is one of the most common reasons applications get delayed or rejected, and it’s entirely avoidable.

The deadline you can’t miss

You have 12 months from residence completion to apply, where completion is defined as the earliest of occupancy, the completion certificate, or an FTA-stipulated date. For retention payments made to contractors, a second claim can be submitted within 6 months of that payment.

Once a complete application is submitted, the FTA processes refunds within 20 business days..

2. Corporate Tax: Who Is Actually Accountable? The FTA Has Now Clarified This.

This one matters for every UAE business operating under the Corporate Tax regime and particularly for businesses where governance structures don’t perfectly match operational realities.

The FTA has issued guidance under CTP010 clarifying exactly what “director” and “officer” mean for Corporate Tax compliance purposes.

The definitions in plain English

A director is any individual formally appointed to the board of a juridical person, executive and non-executive, whether or not they’re involved in day-to-day management. If you’re on the board, you’re a director for CT purposes.The FTA indicated that individuals acting in a director-like capacity may also fall within the definition even without a formal title or appointment.

An officer is broader. It covers any individual holding a senior managerial or decision-making role, general managers, CEOs, CFOs, or anyone exercising significant control over business operations. The critical point: it doesn’t matter what your title says. What matters is what you actually do.

The substance over title principle

The FTA has been explicit that this is a substance-over-form assessment. If someone is making material business decisions, controlling operations, or exercising governance authority, they are an officer for Corporate Tax purposes, regardless of how their role is formally designated.

This has three immediate implications:

  • Tax compliance accountability cannot be delegated away through nominal titles or restructured roles. If you have the authority, you have the responsibility.
  • Businesses that have structured their governance to create separation between decision-making authority and formal accountability need to review that structure now, not when an FTA inquiry arrives.
  • This aligns UAE Corporate Tax with international governance and substance principles, signalling that the FTA is approaching compliance with increasing sophistication.

What to do now

Review your current governance structure and map it against this guidance. Are all individuals who exercise material control formally identified in your Corporate Tax framework? If there are gaps between formal designation and actual authority, those gaps need to be closed.

3. The FTA’s New Tax Registration Self-Assessment Tool is Useful, But Not a Substitute for Advice

The FTA has launched a Tax Registration Self-Assessment Tool on the EmaraTax platform and it’s a genuinely useful starting point for businesses that are uncertain about their registration obligations.

How it works

The tool asks four questions: whether the applicant is a company or individual, whether the entity is incorporated in the UAE, whether taxable revenue exceeds or is expected to exceed AED 375,000, and whether the business is involved in excise goods such as tobacco, e-cigarettes, or sweetened beverages.

Based on the answers, it returns one of three outcomes: likely required to register, unlikely required to register, or seek professional advice.

The important caveat

This is a screening tool, not a definitive assessment. For straightforward cases, it provides a useful and quick indication. For anything with complexity, businesses operating across free zones and mainland, entities with mixed taxable and exempt supplies, or businesses with related party arrangements, the tool’s output is a starting point, not a conclusion.

The “seek professional advice” outcome is worth taking at face value. In our experience, the situations where businesses most need a detailed assessment are often the ones where initial assumptions suggested registration wasn’t required.

The practical value

For finance leaders onboarding new entities, subsidiaries, or JV structures, running them through this tool as an early checkpoint is a reasonable part of the process. It won’t replace a proper analysis, but it will flag obvious registration requirements quickly.

The tool is available at tax.gov.ae.

KSA Update: ZATCA Issues Guidance on Zakat Returns Relevant for GCC Operations

For businesses with Saudi Arabian operations, ZATCA issued a Guidance Manual in April 2026 clarifying how zakat return items should be treated.

The practical points are significant:

  • The filing deadline is confirmed at 120 days. The reassessment period has been extended to 10 years for late filings, a meaningful increase in exposure for businesses that have historically been less than precise about their zakat positions.
  • Record retention is now required for 10 years, with the burden of proof sitting firmly with taxpayers. The calculation of the zakat base, combining equity, liabilities, and adjusted profits, has been clarified, with the introduction of minimum and maximum zakat base concepts.
  • ZATCA’s audit powers have also been expanded under this guidance.

The guidance applies to fiscal years starting on or after 1 January 2024. If you have Saudi entities and your zakat compliance hasn’t been reviewed recently, this is a reasonable trigger to do so.

What to Do Now

  • If you’re a UAE national who has recently built a new home: check your eligibility for a VAT refund and apply within your 12-month window. Don’t let the deadline pass.

  • If you have a UAE business under Corporate Tax: review your governance structure against the new director and officer definitions. Ensure that everyone exercising material authority is appropriately identified in your CT framework.

  • If you have new entities, subsidiaries, or JVs: run them through the FTA’s self-assessment tool as a first check, then follow up with a proper analysis for anything complex.

  • If you have Saudi operations: review your zakat return positions, record-keeping, and filing history against the new ZATCA guidance. The 10-year reassessment window means historical positions matter.

How Nishe Can Help

These updates touch Corporate Tax governance, VAT compliance, and GCC regulatory management, all areas where our team works every day.

If any of the above has raised questions about your current position, or if you’d like a second opinion on your governance structure, compliance framework, or cross-border tax position, we’re happy to talk.

No lengthy process before we understand your situation. Just a practical conversation about where you are and what you need.

Get in touch with the Nishe team

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