The UAE Cabinet has approved a package of legislative amendments covering corporate tax, value-added tax (VAT) and the Commercial Companies Law, according to an announcement issued on 17 December. While the 9 per cent federal corporate-tax rate introduced in June 2023 remains unchanged, the amendments streamline compliance rules, clarify free-zone exemptions and simplify transfer-pricing documentation for multinational groups.
Key changes include a single electronic return for entities operating across multiple emirates, harmonised VAT refund procedures for exporters and clearer criteria for permanent establishment—an area that often determines whether globally mobile staff trigger UAE tax liability. The Commercial Companies Law revision, meanwhile, shortens the timeline for registering branch offices and allows 100 per cent foreign ownership in an expanded list of strategic sectors.
The Ministry of Finance said the reforms are designed to “reduce regulatory ambiguity and reinforce the UAE’s status as a business-friendly hub.” Tax advisers note that the ability to consolidate filings across emirates will cut administrative overheads for regional headquarters, while clearer PE definitions give HR and mobility teams firmer guidance on when short-term assignees create a taxable presence.
![UAE overhauls corporate-tax, VAT and company laws to sharpen competitiveness]()
For organisations dispatching employees to the Emirates, visa formalities can be just as critical as tax filings. VisaHQ’s online platform helps businesses obtain UAE work and visit visas, arrange document attestation and manage residency renewals—all services that dovetail with the updated Commercial Companies Law and the clarified permanent-establishment rules. Companies can explore these solutions at https://www.visahq.com/united-arab-emirates/.
Multinationals should review existing intra-group service agreements, update employee secondment policies and ensure payroll systems capture the revised VAT coding. Companies contemplating hub relocations now have greater certainty on ownership structures and tax exposure—factors that directly influence global-mobility budgeting and cost-projection models.
Taken together, the measures signal the government’s intent to pivot from pandemic-era stimulus to long-term competitiveness, adding fiscal predictability that supports talent attraction and retention.
Key changes include a single electronic return for entities operating across multiple emirates, harmonised VAT refund procedures for exporters and clearer criteria for permanent establishment—an area that often determines whether globally mobile staff trigger UAE tax liability. The Commercial Companies Law revision, meanwhile, shortens the timeline for registering branch offices and allows 100 per cent foreign ownership in an expanded list of strategic sectors.
The Ministry of Finance said the reforms are designed to “reduce regulatory ambiguity and reinforce the UAE’s status as a business-friendly hub.” Tax advisers note that the ability to consolidate filings across emirates will cut administrative overheads for regional headquarters, while clearer PE definitions give HR and mobility teams firmer guidance on when short-term assignees create a taxable presence.
For organisations dispatching employees to the Emirates, visa formalities can be just as critical as tax filings. VisaHQ’s online platform helps businesses obtain UAE work and visit visas, arrange document attestation and manage residency renewals—all services that dovetail with the updated Commercial Companies Law and the clarified permanent-establishment rules. Companies can explore these solutions at https://www.visahq.com/united-arab-emirates/.
Multinationals should review existing intra-group service agreements, update employee secondment policies and ensure payroll systems capture the revised VAT coding. Companies contemplating hub relocations now have greater certainty on ownership structures and tax exposure—factors that directly influence global-mobility budgeting and cost-projection models.
Taken together, the measures signal the government’s intent to pivot from pandemic-era stimulus to long-term competitiveness, adding fiscal predictability that supports talent attraction and retention.
