UAE corporate tax compliance and group formation in 2026

The United Arab Emirates has entered a new phase of its corporate tax regime in 2026, following the completion of the first filing season. The Federal Tax Authority (FTA) is now actively conducting compliance reviews through data-driven checks and automated cross-verification via the EmaraTax platform.

Businesses may face audits to verify the accuracy of reported taxable income and tax payments. The FTA may examine financial statements, tax returns, accounting records, invoices, and contracts. Certain entities, such as qualifying Free Zone persons and taxable persons with revenue exceeding AED 50 million, are required to maintain audited financial statements.

Additionally, eligible related companies can apply to form a Corporate Tax Group. This structure allows a resident parent company and its subsidiaries to be treated as a single taxable person, enabling the consolidation of financial results and the aggregation of profits and losses. Such formation is subject to strict ownership and residency conditions.