Gulf News, 15 December 2025: The UAE has altered its corporate tax framework, introducing clearer settlement rules and allowing businesses to claim refunds on unused tax credits.

A new Federal Decree-Law has been enacted, amending key provisions of Federal Decree-Law No. 47/2022 on the Taxation of Corporations and Businesses. The changes aim to streamline the calculation and settlement of corporate tax obligations and establish a formal process for refunding unutilised tax credits derived from eligible incentives and reliefs.

Under the amendment, corporate tax liabilities will be settled in a defined sequence. Businesses must first offset their liability using withholding tax credits under Article 46 of Federal Decree-Law No. 47/2022 on the Taxation of Corporations and Businesses, followed by foreign tax credits under Article 47 of Federal Decree-Law No. 47/2022. Additional reductions may then be applied using other approved incentives or relief balances as specified by the Cabinet. Any remaining tax due must be paid in accordance with Article 48 of Federal Decree-Law No. 47/2022 on the Taxation of Corporations and Businesses.

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