UAE: Mandates Laboratory Testing under Sugar-Based Drinks Tax

Gulf News, 29 October 2025: The Federal Tax Authority (FTA) has outlined new requirements for beverage producers and importers ahead of a tiered sugar tax implementation planned for early 2026.

Under the new system, manufacturers must obtain Accredited Conformity Certificates verifying the sugar content of their products. The certification process requires laboratory testing from approved facilities to determine precise sugar levels per 100 millilitres.

The tax structure will feature four distinct categories: drinks with 8g or more sugar per 100ml: highest tax rate, drinks containing 5-8g sugar per 100ml: moderate tax rate, beverages with less than 5g sugar per 100ml: lower tax rate and sugar-free drinks with artificial sweeteners: zero tax.

Products without proper certification will automatically be classified in the highest tax bracket until laboratory results prove otherwise.

The new framework will apply to all beverages containing added sugars or sweeteners, including concentrates, powders, and gels. Natural sugar-only drinks will be exempt from the tax, while energy drinks will maintain their current 100% excise rate.

Businesses can now apply for certification through the Ministry of Industry and Advanced Technology’s online platform. Acceptable test results must come from laboratories accredited by recognised bodies such as the Emirates National Accreditation System or those certified under ISO/IEC 17025.

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UAE: Tax Authority Launches AI Tools to Modernise Tax Services

Khaleej Times, 22 October 2025: The Federal Tax Authority (FTA) has implemented new artificial intelligence systems to enhance its tax administration services across the United Arab Emirates, including two primary AI platforms: an internal system for staff and an upgraded public-facing service for taxpayers.

The authority has introduced FTAGPT, an AI-powered internal system designed to provide FTA staff with immediate responses to queries about VAT, Excise Tax, and Corporate Tax legislation. The tool primarily supports call centre staff and employees who interact directly with taxpayers.

Simultaneously, the FTA has enhanced TARA, its existing AI platform for taxpayers, accessible through the authority’s official website. The upgraded system now includes comprehensive information about Corporate Tax, introduced in 2023, and allows users to check application status and submit queries about tax legislation.

Director of the Taxpayer Services Department, confirmed that the system has been expanded to handle inquiries about Corporate Tax returns and reconsideration cases related to fines. The authority has also implemented predictive AI capabilities to identify common filing errors and send preventative guidance to taxpayers.

The UAE’s current tax framework encompasses three main taxes: a 5% Value Added Tax, Excise Tax on specific products ranging from 50% to 100%, and Corporate Tax with rates of 0% on profits up to AED 375,000 and 9% above this threshold.

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UAE: Cut Trademark Fees for Small Business Programme Members

Khaleej Times, 21 October 2025: The UAE Ministry of Economy and Tourism has announced a 50 per cent reduction in trademark fees for members of its National SME Programme, alongside a complete fee waiver for people of determination.

The ministry has established fees for 28 trademark services, including several new offerings. Key charges include AED2,250 for filing infringement complaints and AED7,500 for grievances against dismissed objections. Applications involving multiple categories will be charged separately for each category.

Seven new trademark services have been introduced, including geographical indication registration at AED6,500, one-day trademark examination at AED2,250, and international trademark conversion at AED400. The ministry has also consolidated renewal fees into four categories, ranging from AED5,750 for standard renewals to AED9,750 for late renewal of monitoring marks.

The ministry has implemented additional measures including a Geographical Indications system and participation in the Madrid Protocol since 2021, enabling local businesses to expand trademark protection internationally. A new one-day trademark initiative has also been launched to accelerate registration processes.

The fee reduction applies to all registered members of the National SME Programme, which supports UAE entrepreneurs in business development and sustainability.

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UAE: Central Bank Gains New Powers Under Financial Stability Law

Gulf Today, 11 October 2025: The UAE has introduced sweeping new financial regulations, granting the Central Bank enhanced powers to intervene in troubled institutions and impose larger penalties for violations.

Federal Decree-Law No. 6/2025 establishes several key measures: Crisis Management Powers: authority to remove and appoint bank management, power to transfer or sell assets and obligations, ability to override shareholder rights, authority to implement forced mergers or liquidations and power to establish temporary entities for asset management.

Consumer Protection Measures: creation of “Sanadak” unified complaints system, establishment of specialised judicial committees, final binding decisions for disputes up to AED 100,000 and mandatory financial access requirements for institutions.

Enhanced Penalties: increased administrative fines, penalties up to ten times violation value, automatic deduction of fines from accounts and direct recovery powers from responsible individuals.

The law strengthens early intervention protocols, allowing the Central Bank to impose additional capital requirements, mandate recovery plans, and restructure troubled institutions’ operations.

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UAE: Issues First Drone Traffic Management Licence

Gulf News, 3 October 2025: The United Arab Emirates has reached a significant milestone in drone regulation with the issuance of its first U-Space Service Provider (USSP) certification to a national air navigation organisation.

The approved organisation will operate a specialised platform for managing drone traffic throughout the UAE airspace. The system offers immediate flight approvals and incorporates radar data, weather information, and aeronautical notifications.

The newly certified platform features advanced conflict detection and avoidance capabilities, designed to support future urban air mobility operations across UAE cities.

Officials confirmed that the certification process included comprehensive operational readiness assessments and system validations to ensure compliance with international standards.

Applications for drone operations under the new system will span various sectors, including delivery services, emergency response, and infrastructure inspection.

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