UAE Business Law Updates: October 2025
Essential changes you need to know about corporate tax, free zones, visa requirements, and banking regulations.
Critical Business Updates
These regulatory changes take effect January 1, 2026. Businesses must comply before the deadline to avoid penalties, license suspension, or additional compliance costs.
What's Covered in This Update
1. Corporate Tax Changes
The Federal Tax Authority (FTA) has announced significant updates to the UAE's corporate tax framework, affecting filing requirements, exemptions, and compliance procedures for businesses across all emirates.
Key Changes for Business Owners
Enhanced Filing Requirements
- • Quarterly Installments: Large businesses (revenue >AED 50M) must file quarterly estimates
- • Digital Submissions: All returns must be filed through the FTA portal
- • Extended Deadlines: Filing deadline extended to 9 months after year-end
- • Automatic Penalties: Late filing results in immediate AED 10,000 penalty
Free Zone Benefits
- • Qualifying Free Zone Person (QFZP): 0% tax rate maintained
- • Substance Requirements: Must meet adequate substance criteria
- • Income Restrictions: Only qualifying income eligible for exemption
- • Annual Declaration: QFZP status must be declared annually
New Tax Rates and Thresholds
| Business Type | Tax Rate | Threshold | Additional Requirements |
|---|---|---|---|
| Small Business | 0% | Revenue ≤ AED 3M | Annual declaration required |
| Standard Business | 9% | Revenue > AED 3M | Quarterly payments if revenue > AED 50M |
| Large businesses (>AED 50M revenue) | 9% | Revenue > AED 50M | Mandatory quarterly installments |
| Multinational Enterprises | 15% | Revenue > AED 3.15B globally | Companies with related party transactions >AED 200M |
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2. Free Zone Regulation Updates
Major free zones including DIFC, DMCC, and ADGM have introduced enhanced compliance frameworks and streamlined licensing procedures.
Enhanced Economic Substance Requirements (ESR)
New Documentation Requirements
- • Detailed business activity records
- • Employee presence documentation (minimum 183 days)
- • UAE-based asset registers
- • Core income-generating activity evidence
Compliance Deadlines
- • ESR notification: Within 6 months of year-end
- • Economic substance report: Within 12 months
- • Penalty for non-compliance: AED 50,000 - 400,000
- • Repeated non-compliance: License suspension
Digital License Renewal Process
Online Portal Access
Access your free zone's digital portal using Emirates ID and trade license number.
Document Submission
Upload audited financial statements, ESR reports, and compliance certificates.
Automated Processing
AI-powered system reviews submissions and processes renewals within 5-7 business days.
3. Visa & Immigration Updates
Golden Visa Enhancements
Reduced Investment Thresholds
The UAE has significantly reduced Golden Visa investment requirements to attract more entrepreneurs and investors.
Previous Requirements:
- • Real estate: AED 2M minimum
- • Business investment: AED 10M
- • Public investment: AED 10M
- • Deposit: AED 10M (2 years)
New Requirements (2025):
- • Real estate: AED 1M minimum
- • Business investment: AED 5M
- • Public investment: AED 5M
- • Deposit: AED 5M (2 years)
Business Visa Improvements
Enhanced Benefits
- • 5-year multiple entry business visas
- • Fast-track processing (3-5 days)
- • Remote work visa options
- • Family inclusion packages
New Categories
- • Freelancer visas (1-3 years)
- • Digital nomad visas (1 year renewable)
- • Investor visas (5-10 years)
- • Startup founder visas (3-5 years)
4. Banking & Finance Regulatory Changes
Enhanced Due Diligence Requirements
UAE Central Bank has implemented stricter KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures affecting all business banking relationships.
New Documentation Requirements:
- • Enhanced beneficial ownership disclosure
- • Source of funds documentation
- • Business activity verification
- • Regular compliance reviews
Impact on Businesses:
- • Longer account opening times (2-4 weeks)
- • Periodic documentation updates
- • Enhanced transaction monitoring
- • Compliance training requirements
Digital Banking Initiatives
Instant Account Opening
Digital-first banks offering same-day business account approvals
Enhanced Credit Facilities
AI-powered credit assessments with faster approval times
Islamic Banking Expansion
New Sharia-compliant products for businesses and investments
Important Banking Requirements
- • Source of Funds Documentation: Required for transactions >AED 100,000
- • Business Purpose Declaration: Detailed explanation for large transfers
- • Regular Compliance Reviews: Annual KYC updates mandatory
- • Enhanced Monitoring: Automated systems flag unusual transaction patterns
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5. New Compliance Requirements
Annual Compliance Obligations
Economic Substance Report
Due within 12 months of financial year-end
Corporate Tax Return
Due within 9 months of financial year-end
Ultimate Beneficial Owner Declaration
Required annually through business registration system
Periodic Reporting Requirements
Quarterly VAT Returns
Due within 28 days of quarter-end
Monthly Wage Protection System
Employee salary payments through approved banks
Annual AML Compliance Review
Required for all regulated businesses
6. Action Items & Critical Deadlines
Immediate Action Required
Before December 31, 2025
- ✓ Register for FTA corporate tax portal
- ✓ Complete ESR documentation review
- ✓ Update beneficial ownership records
- ✓ Verify free zone QFZP eligibility
- ✓ Review and update bank compliance documents
Q1 2026 Priorities
- ✓ Submit first corporate tax return (if applicable)
- ✓ File 2024 ESR report
- ✓ Complete digital license renewals
- ✓ Update visa applications with new categories
- ✓ Implement enhanced banking procedures
Key Deadlines Calendar
Corporate Tax Registration Deadline
All businesses subject to corporate tax must register with FTA
Final Compliance Deadline
All new regulations take full effect - no grace period
2024 ESR Report Submission
Economic Substance Reports for 2024 activities due
Professional Support Recommended
Given the complexity of these changes, we strongly recommend engaging professional advisors for:
- • Corporate tax compliance and registration
- • ESR report preparation and submission
- • Free zone license renewal assistance
- • Banking compliance documentation
- • Visa application strategy and processing
- • Ongoing regulatory monitoring
Need Expert Help with These Changes?
Our regulatory compliance experts can help ensure your business meets all new requirements without disruption.
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Last Updated: October 2025
Information current as of this date. Please verify for any updates or changes.
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