The United Arab Emirates’ Federal Tax Authority (FTA) is streamlining its fee structure, eliminating charges for paper tax certificates while simultaneously introducing fees for Advance Pricing Agreements (APAs). The changes, announced Tuesday, aim to reduce administrative burdens for businesses and enhance tax compliance, furthering the UAE’s transition to a fully digital tax system. These adjustments will impact companies of all sizes operating within the UAE, particularly those engaged in international transactions.
The fee revisions take effect immediately for the removal of charges for paper certificates, and will be implemented from January 2026 for the new APA fees. The changes apply across the UAE, impacting businesses registered for Value Added Tax (VAT) and corporate tax. According to the FTA, the move supports faster access to essential documentation and reduces unnecessary paperwork.
Changes to UAE Tax Certificate Fees
Elimination of Paper Certificate Fees
The FTA has cancelled fees associated with issuing Certified paper Tax Registration Certificates and certified paper Warehouse Keeper Registration Certificates. Previously, businesses requesting physical copies of these documents incurred a cost. Now, electronic versions of these certificates will be provided free of charge. This shift aligns with the UAE government’s broader digitalization strategy and is expected to simplify processes for businesses.
This change is particularly beneficial for small and medium-sized enterprises (SMEs) who may have previously found the cost of paper certificates prohibitive. Additionally, the faster access to electronic certificates will improve operational efficiency for all businesses. The FTA stated this move is intended to encourage voluntary tax compliance through simpler, more accessible procedures.
Introduction of Fees for Advance Pricing Agreements
While eliminating some fees, the FTA is introducing charges for services related to Advance Pricing Agreements (APAs). Two new service fees will be levied, starting January 2026: applications to enter into a Unilateral APA for the first time, and applications to renew or amend an existing Unilateral APA.
APAs are agreements between a taxpayer and a tax authority that determine the pricing for transactions between related parties. They are commonly used by large corporations and multinational groups to provide certainty regarding their transfer pricing arrangements. The FTA explained that these new fees are designed to improve tax compliance and ensure efficient handling of these complex applications.
However, the specific amount of the new APA fees has not yet been disclosed. Businesses utilizing or considering APAs will need to await further clarification from the FTA regarding the fee structure. This lack of immediate detail introduces some uncertainty for companies planning their tax strategies.
Impact on Businesses
For the majority of businesses, the removal of fees for paper certificates will result in cost savings and increased convenience. The elimination of the need to request and pay for physical documents streamlines administrative processes. This change supports the UAE’s ongoing efforts to create a more business-friendly environment.
In contrast, larger firms and multinational corporations involved in transfer pricing will be directly affected by the introduction of APA-related fees. This signals a more formalized and structured approach to managing complex tax arrangements within the UAE. The new fees may incentivize companies to carefully evaluate the cost-benefit of pursuing an APA.
The FTA’s move is consistent with its broader strategy, launched in 2017, to transition to a fully electronic tax system. This includes online registration, filing, and payment services. The authority has consistently emphasized the importance of digital transformation in enhancing tax administration and improving taxpayer services. The changes also reflect a global trend towards increased scrutiny of transfer pricing practices.
Experts suggest that the introduction of APA fees could also lead to increased demand for professional tax advice, as companies seek guidance on navigating the new fee structure and optimizing their transfer pricing strategies. This could benefit tax advisory firms operating in the UAE.
Looking ahead, businesses should monitor the FTA for the official announcement of the specific APA fee amounts. The January 2026 implementation date provides a timeframe for companies to prepare for these new costs. Further details regarding the application process and any potential exemptions are also expected to be released by the FTA in the coming months. The long-term impact of these changes on tax revenue and compliance rates remains to be seen.
