Business Setup & Tax Law 2026

For expats moving to start or relocate a business, the 2026 regulatory environment introduces new tax and compliance requirements. Here is an overview of the current landscape.

Dubai remains a premier global hub for business. As of 2026, the introduction of corporate tax and advanced electronic compliance has standardised the environment, making it even more attractive for international scaling.

Business Setup & Jurisdiction

The choice between Mainland and Free Zone remains the primary decision for any new entity. 2026 regulations have further clarified ownership and operational requirements.

Mainland EntitiesUnrestricted access to the entire UAE local market

Full onshore operations

Free Zone SpecialistChoose jurisdictions based on specific industry tax benefits

40+ Dedicated Zones

LicencingSupport available for all licence acquiring routes

Commercial / Professional

Corporate Tax & Compliance (FTA)

The UAE Corporate Tax regime is now fully established. All businesses should be aware of the headline rates and the available relief windows.

Standard Tax RateApplicable on income exceeding AED 375,000

9% on qualifying income

Small Business Relief (SBR)Relief available for revenue below the threshold

Under AED 3,000,000

VAT Registration5% VAT applies to most goods and services

Mandatory at AED 375k

2026 Deadlines & Systems

Small Business Relief Window: If your annual revenue is under AED 3m, ensure you elect for SBR before the 2026 expiration window.

Electronic Invoicing: Implementation of the mandatory 2026 Electronic Invoicing System is required for all B2B transactions.

VAT Credits: The FTA has enforced a 5-year hard cap on credit recovery. Ensure historical credits are filed before the window closes.

This content is provided for informational purposes only. It does not constitute legal or financial advice. Always verify tax obligations with a registered tax agent or the Federal Tax Authority (FTA).