In late December 2025, the Federal Tax Authority (FTA) announced changes in the way it charges fees for certain services, mainly impacting corporate tax procedures and other related compliance applications in the UAE. These amendments, outlined under Cabinet Decision No. 174 of 2025, are effective from 1 January 2026 and represent a real step toward digital efficiency and increased tax certainty.
It is important for businesses operating actively in the UAE, whether established local firms, free zone entities, or foreign investors alike, to understand these updates. The article breaks down what these changes are, why they matter with regard to your UAE Corporate Tax obligations, and outlines where a Tax consultant in Dubai can help in navigation of an evolving landscape.
Why the FTA Amended Its Service Fees?
The FTA’s service fees regime has traditionally been regulated by Cabinet Decision No. 65 of 2020, which contains fees for a number of services performed by the FTA, for example, issuance of certificates and handling of registration.
With the evolving nature of the UAE’s tax system, most recently following the issuance of the UAE Corporate Tax Law through Federal Decree-Law No. 47 of 2022, the FTA has moved to make amendments that support this development. The proposed amendments seek to:
- Reflect increasing demand for advanced compliance software solutions.
- Promote more effective tax certainty mechanisms.
- Support digital government services as part of the national transformation agenda.
This translates to new charges relating to advanced corporate tax services as well as eliminating charges that are not consistent with digital delivery models.
What Services Will Have New Fees from January 2026?
Two major services, where a new user fee applies under the revised schedule, are:
- Application for Entering into a Unilateral Advance Pricing Agreement (APA) for the First Time
Under APA, both the taxpayer and the FTA can agree ahead of time on how to apply transfer pricing principles to controlled transactions and, in doing so, both can minimize risks in relation to tax matters, particularly for MNCs involving related parties.
Service Fee: 30,000 AED (effective from 1 January)
This fee is a reflection of the work that goes into entering into a binding APA, which is a very useful tool that many large business taxpayers make use of.
- Application for Renewal or Amendment of an Already Existing Unilateral APA
APAs may need revision or extension as business structures evolve or tax positions change.
Service Fee: AED 15,000 (effective 1 January 2026)
This clearly outlines the process to taxpayers when they are planning a long-term pricing strategy or expanded operations.
These changes formalize administrative costs for these services and provide businesses with an upfront understanding of compliance costs, from 2026 onwards.
What Services Are No Longer Charged?
In a striking opposite action, the FTA will waive the charges for processing some paper-based certificates, including:
- Certified paper Tax Registration Certificate (new/replacement)
- Certified paper Warehouse Keeper Registration Certificate (new/replacement)
These paper registration certificates will henceforth be issued as free electronic registration certificates. The electronic registration certificates will feature QR codes for immediate verification of registration on the internet, aligning with the UAE’s drive for maximization of internet-based services and minimization of paperwork.
In terms of businesses, this would imply one fewer administrative expense, and a more optimal approach to administration with regards to compliance documentation like TRNs (Tax Registration Numbers) and warehouses.
Why the Changes Matter for UAE Corporate Tax Filers?
If your business is registered for UAE Corporate Tax, or if you anticipate engaging with the FTA for advanced compliance tools like an APA, these fee changes have practical implications:
- Cost Planning and Budgeting
Companies now know the fees associated with APA applications in advance, helping with financial planning and compliance budgeting.
- Increased Use of Transfer Pricing Tools
With APA fees formalized, businesses with cross-border or intra-group transactions may be more inclined to seek pricing certainty a key area of international corporate tax practice.
- Enhanced Digital Efficiency
Free electronic certificates reduce processing time and cost, particularly for entities that frequently interact with the FTA for registration verification or updates.
What Is a Unilateral Advance Pricing Agreement (APA)?
Transfer pricing risk is a serious issue that many businesses and multinational companies have to take into consideration when it comes to compliance with corporate taxes. A unilateral APA is a treaty established between the taxpayer and a single taxing authority (in this case, FTA) regarding treating transactions between associated entities.
Article 59 of Federal Decree-Law No.47 issued in 2022 is the legal framework that enables taxpayers to request tax interpretations and approaches such as APAs, and this is thus a critical part of contemporary tax planning procedures.
The FTA secures this by making formal fees applicable for APA application submissions, meaning that this new tool for meeting administrative requirements has an appropriate cost associated with it that relates to its level of complexity.
Practical Impact for Different Businesses
Small and Medium Businesses
Those SMEs that do not engage in transfer pricing issues generally will not be needing to request APAs, their main benefit will be the free digital certificates that reduce paperwork costs and ease the compliance burden. Still, SMEs need to be aware of fee schedules in case other services might align with their business later.
Large Corporates and Multinationals
The APA fee is a major change for larger entities involved in related-party pricing arrangements. Taxpayers of this category should:
- Assesses whether an APA can reduce long-run tax risk.
- May require professional support to prepare APA documentation
- Update compliance budgets with new service charges
A local tax consultant in Dubai can help evaluate, based on your business model and profiles of transactions, whether pursuing an APA makes economic sense.
How HH and HALE Can Help Your Business?
Handling new fee structures, pricing agreements, and overall Corporate Tax in the UAE may be challenging without professional help. To be the best tax consultant in Dubai, HH and HALE provides assistance to companies through:
- Interpretation of any change in FTA service fees and implications to your business.
- Assessment of whether pursuing an APA is appropriate.
- Manuscript preparation and submission support in fee-paying applications.
- Coordinating with the FTA for timely electronic registration and compliance.
- Long-term tax planning as per UAE laws and international best practices.
Whether it is a matter of undertaking a review of your current compliance tools or planning for long-term growth, expert advice minimizes risk and ensures confidence in your tax strategy.
FAQs
- Why has the FTA introduced new fees for APAs?
These new charges represent the administrative cost involved in processing complex agreements which ensure legal certainty regarding transfer taxes under UAE Corporate Tax rules.
- Do all companies need to pay these fees from 2026?
Only those businesses that seek the particular services (APA initiation or renewal) would be charged the fees. If your business does not avail these services, there would be no additional costs incurred.
- Are electronic certificates truly free?
The charges for printing paper certificates have been cancelled, and now an FTA issues electronic certificates with a verification code through QR only without charging any fee.
- Is the charge retrospective?
No. The revised fee schedule applies only from 1 January 2026.
- What should a business do to prepare?
Early engagement with compliance advisors like HH and HALE helps to project costs, evaluates strategic options like APAs, and aligns tax planning with regulatory timelines.