9% Growth in Corporate Tax Registrations During the First Quarter
The first quarter of this year witnessed a significant increase in the number of corporate tax registrants, with a growth rate of 9%. This trend reflects the success of ongoing efforts to enhance tax compliance and improve tax administration in the country. Abdul Aziz Mohammed Al Mulla, Director General of the Federal Tax Authority, noted that the level of corporate responsiveness to tax legislation has markedly improved. In this article, we present key information regarding the growth in registrants, along with other related initiatives.
Enhancing Tax Compliance
Al Mulla emphasized that the increase in corporate tax registrations is a result of higher adherence to tax procedures and regulations. He mentioned that the number of registrants grew by 9% during the first quarter of this year compared to the same period last year. “The rise in registration rates with the authority within the legally stipulated deadlines for each category, along with the submission of tax returns, reflects the success and efficiency of the tax legislative and procedural system,” Al Mulla stated.
Tax Refund Requests for Citizens
In a related context, Al Mulla revealed that the number of approved tax refund requests for citizens reached approximately 43,900 requests valued at 3.72 billion dirhams since the service began until the end of March 2026. He pointed out that 1,812 new requests were approved during the first quarter of 2026, with refunded amounts exceeding 167 million dirhams. The continuous growth in the number of requests reflects a positive shift in citizens’ awareness of their tax rights.
Challenges and Digital Systems
Despite advancements in the tax system, Al Mulla noted some challenges related to understanding corporate tax, particularly among newly established companies. This group may require further education on tax compliance requirements. On the other hand, the development of digital systems related to VAT refunds continues, reflecting ongoing efforts to streamline processes and improve accuracy.
Al Mulla also mentioned that the number of stores electronically linked to the system reached 19,130, with 233 new outlets added during the first quarter. This expansion contributes to facilitating procedures for tourists eligible for tax refunds, thereby increasing the system’s effectiveness.
Future Trends
With the implementation of the graduated volumetric system for excise tax, there appears to be a strong commitment to executing well-considered tax policies related to public health. The discussion about linking tax value to the sugar content in beverages underscores the leadership’s vision toward building a healthy society.
The authority continues to achieve its goals and develop the tax environment, contributing to greater economic stability and stimulating investment in the private sector. The 9% growth in corporate tax registrations is a positive step toward achieving tax fairness and compliance.