



The UAE Federal Tax Authority (FTA) is still moving towards digital transformation to ensure the tax compliance process becomes easier, convenient, and more affordable to the business. In the introduction of the Cabinet Decision No. 174 of 2025, FTA has revised the taxes charge, simplified the issuing of paper and electronic tax certificates, and encouraged tax compliance voluntarily by providing digital government services. This program will guarantee quicker access, less paper work, and improved processing times to businesses of any size, including smaller companies as well as bigger multinationals.
The FTA also announced new fees on certified paper tax certificates and Warehouse Keeper Registration Certificate under the Cabinet Decision No. 174 of 2025, and promoted the use of free electronic certificates.
Businesses are now in a position to acquire digital registration certificates containing a QR code so that they can be instantly verified without physical paper work. This action will cut down processing time, decrease administrative expenses and encourage the reduction of cost to companies with an organized system of taxation.
The FTA also explained the pricing structure to specialised applications like Unilateral Advance Pricing Agreements (APA), APA renewals and APA amendments. These are particularly applicable among bigger organizations and multinationals that operate the pricing of transfers and teamed tax compliance within numerous jurisdictions.
Paper-based certificates which are traditionally certified are slowly being substituted with electronic tax system solutions. The FTA currently provides digital registration certificates and free electronic certificates that contain QR codes to be authenticated.
The advantages of such a change are:
Considering certificate digitisation, the FTA is developing a simplified process of satisfying tax obligations, which will be in line with the overall strategy of digital services in the UAE government.
The shift to digital services invites the business to practice voluntary tax compliance which has several benefits:
The electronic tax system is a form of voluntary compliance that has made businesses well prepared to undergo audit but will have the luxury of convenience and transparency.
Introduction of the digital registration certificates and free electronic certificates have made businesses in the UAE very efficient.
Key improvements include:
With the implementation of digital services, the businesses can provide tax compliance into their system without delays that used to happen due to the heavy workloads of paperwork.
Unilateral Advance Pricing Agreements (APA), APA renewals, and APA amendments now have a revised fee structure in Cabinet Decision No. 174 of 2025.
This update ensures that:
Digital services offered to APAs at the FTA contribute to the increased speed of its processing, which means that companies can devote their time to strategy planning when it comes to taxation and not administration issues.
The initiative by the UAE to move to digital services regarding tax compliance directly corresponds to the reduction of costs in the form of business:
These cost cuts are in line with the overall aim of ensuring compliance of the UAE as a business-friendly destination to support SMEs as well as multinational groups.
Electronic tax system: The FTA has an electronic tax system that is central to making compliance easier:
Facilitates voluntary compliance with businesses of any size.
The FTA facilitates this by providing systemed digital services which allow businesses to ensure maximum compliance with changes in the rules of VAT, tax registration, and continued tax payment and save time and resources.
The UAE Federal Tax Authority is changing the tax compliance environment with a new Cabinet Decision No. 174 of 2025. The new tax rates, the implementation of online registration certificates, and substitution of certified paper certificates with electronic solutions give businesses more efficient and quicker methods of fulfilling the responsibilities without being costly.
Through the utilization of digital government services, companies will benefit through a shorter processing time, reduced cost, and simplified transfer pricing, structured taxation schemes, and specialised applications such as APAs.