UAE updates corporate tax law Dec. 15, 2025, clarifying credit order and refund rules.

The UAE has issued a Federal Decree-Law effective December 15, 2025, amending its 2022 Corporate Tax Law to clarify the order for applying tax credits and incentives: first withholding tax credits, then foreign tax credits, followed by other Cabinet-approved incentives. Businesses may now claim refunds for unused credits under conditions set by the Cabinet. The Federal Tax Authority is authorized to withhold funds from corporate or top-up tax revenues to pay approved claims, following internal board decisions. The changes aim to improve clarity and administrative efficiency in tax settlements.