The UAE’s tax system recorded strong growth in 2025 as revenues climbed to AED46bn ($12.5bn), Corporate Tax registrations accelerated and the Federal Tax Authority (FTA) expanded its use of artificial intelligence and digital services.
According to the FTA’s 2025 Annual Report, growth was driven by a substantial increase in Corporate Tax registrations alongside continued expansion in Value Added Tax (VAT) and Excise Tax registrations, reflecting the continued evolution of the UAE’s tax ecosystem.
VAT and Excise Tax revenues increased from AED41bn ($11.2bn) in 2024 to AED46bn ($12.5bn) in 2025.
At the same time, the Tax Registration Department reviewed approximately 1.7 million transactions during the year, representing growth of more than 20 per cent.
Corporate Tax continued to drive activity across the Authority.
UAE tax revenue
During 2025, the FTA completed:
More than 245,000 Corporate Tax registration applications
98,000 VAT registration applications
206 Excise Tax registration applications
The Authority said the increase in registrations contributed to significant growth across its operations while supporting continued expansion of its digital services.
The report highlighted continued investment in digital transformation and artificial intelligence.
According to the FTA, wider adoption of AI technologies is improving:
Operational efficiency
Service quality
Transaction processing speed
Delivery of tax initiatives
The Authority said these developments form part of its strategy to strengthen a smart tax ecosystem built around the needs of taxable persons while encouraging innovation and improving tax administration.
Filling a TAX return form: Image / Unsplash
Customer engagement growth
The report also showed increased engagement across the Authority’s services.
During 2025:
More than 625,000 transactions were received through customer communication channels, an increase of 12 per cent compared with 2024
Visitor numbers at FTA support centres in Abu Dhabi and Dubai exceeded 21,000, up 10 per cent year-on-year
Overall customer happiness reached 93 per cent, improving by 1.5 per cent compared with 2024
Taxpayer services also continued to expand.
Approximately 1.7m Tourist VAT Refund requests were submitted during the year, while more than 7,000 VAT refund applications were received for newly built residences for UAE nationals.
The report also recorded 289 retailer applications to join the electronic Tourist VAT Refund Scheme.
UAE tax awareness
The Authority continued investing in taxpayer education and digital communication.
During 2025, the FTA:
Organised 210 tax awareness workshops
Reached approximately 122,700 workshop participants
Sent more than 65 million text messages and emails through its digital ecosystem
Recorded 2.6 million visitors to its website
Published 2,980 awareness posts across social media
Added 48,280 new social media followers
According to the report, the Authority continued developing its legislative, procedural and technological capabilities while expanding digital transformation and artificial intelligence to enhance efficiency, improve taxpayer services and strengthen the UAE’s smart tax ecosystem.
