UAE’s 2025 tax revenue increases 15%

The UAE collected more than AED46 billion ($12.5 billion) in value-added tax (VAT) and excise tax in 2025, up 15 percent from AED41 billion in 2024, the finance ministry has said.

The taxes were distributed among federal and local governments, Mohamed bin Hadi Al Hussaini, minister of state for financial affairs, said in a statement.

The growth in tax revenues highlights the strength of the UAE’s fiscal approach and its ability to sustain stable government resources that bolster fiscal balance and will drive economic and development priorities in the years ahead, he said.

Al Hussaini added that tax revenues are a key contributor to the UAE’s public finances, supporting its development agenda and the competitiveness of the national economy.

UAE debt and current account balance

The UAE has implemented a 5 percent VAT on most goods and services since January 2018.

In December 2024, the government announced an increase in corporate tax on large multinational enterprises to 15 percent from January 1, 2025.

The UAE introduced an excise tax in 2017, targeting products that are mostly harmful to health. It implemented a revised excise tax structure for sugar-sweetened drinks from January 1, 2026.

In October, the UAE cabinet approved the federal budget for 2026, with estimated revenue of AED92.4 billion. It has announced a federal allocation of AED900 billion for its 2027-2029 budget cycle.

Further reading:

• Non-oil growth adds to rising UAE GDP
• UAE set for fiscal surplus even as spending rises amid war
• UAE waives late registration fines for corporate tax filers