UAE advances financial reforms through tax relief and Open Finance

The United Arab Emirates is implementing significant changes to its financial and regulatory landscape. For small and medium-sized enterprises (SMEs), new tax compliance requirements are emerging. While the standard corporate tax rate is 9% on taxable income above AED 375,000, Small Business Relief is available for eligible resident persons with revenue of AED 3 million or less. This relief allows businesses to elect to be treated as having no taxable income for a specific period, though it must be manually elected in corporate tax returns.

Simultaneously, the UAE is advancing its financial infrastructure through an Open Finance framework. Managed by the Central Bank, this initiative establishes a legal and operational basis for secure, consent-based sharing of financial data. The framework includes a Trust Framework and a central API Hub, initially covering banks and insurance companies. This move aims to provide customers with greater control over their financial data and a wider choice of services through accredited providers.