Corporate Tax Law Amended: New Rules for Settling Tax and Claiming Unused Credits
October 12, 2026
The UAE has issued Federal Decree-Law No. 28 of 2025, amending Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
The amendment sets a clear order for settling Corporate Tax due:
- Withholding tax credits (Article 46).
- Foreign tax credits (Article 47).
- Any credits, incentives or reliefs specified by Cabinet Decision.
- Any remaining balance is paid under Article 48.
A new provision also allows taxable persons to claim payment for unutilised tax credits arising from approved incentives or reliefs, subject to conditions, timeframes and procedures set by the authorities.
The amendment does not change the Corporate Tax rates or how taxable income is calculated. It provides a legal framework for future tax incentives in the UAE.
For advice on how these changes affect your business, contact KBM at info@kbmfirm.com.