Welcome to this issue of UAE Law Watch, covering legal and regulatory developments across the UAE over the past fortnight. It has been a busy period for tax, with the Ministry of Finance extending Small Business Relief for three more years and the Federal Tax Authority pressing home filing deadlines, alongside notable changes for families in Dubai and continued regulatory activity in the financial centres. Here is what you need to know.
Business & Tax
Small Business Relief extended until 31 December 2029
On 7 August 2026, the Ministry of Finance announced Ministerial Decision No. 131 of 2026, amending the Small Business Relief regime under the Corporate Tax Law. The amendment extends the period during which qualifying taxpayers may claim the relief to tax periods ending on or before 31 December 2029 — three years beyond the previous sunset. The existing revenue threshold under Ministerial Decision No. 73 of 2023 continues to apply to tax periods commencing on or after 1 June 2023 and to subsequent tax periods ending on or before the new cut-off date. This preserves a key simplification for smaller businesses that might otherwise have moved into full corporate tax computations earlier than expected.
What this means for you: If you run a smaller business or family enterprise, you may be able to rely on this elective relief for several more years — but eligibility and revenue thresholds should be checked each tax period.
Claiming Small Business Relief? You still have to file — deadline 30 September 2026
The Federal Tax Authority confirmed on 3 August 2026 that taxpayers relying on Small Business Relief remain subject to the Corporate Tax compliance framework for each tax period. Claiming the relief does not remove the obligation to file — eligible businesses must still submit a simplified corporate tax return. The general rule requires returns and payment of any corporate tax due within nine months of the end of the relevant tax period. The FTA expressly highlighted that businesses with a financial year ending on 31 December 2025 must file and pay by 30 September 2026.
What this means for you: Do not assume that relief means no filing — if your financial year ended on 31 December 2025, start preparing your return now to meet the 30 September 2026 deadline.
New FTA decision on corporate tax registration and deregistration timelines
The FTA has published Decision No. 12 of 2026 on Registration and Deregistration Timelines, issued on 16 July 2026 and published on 4 August 2026. The decision is listed under Corporate Tax on the FTA’s legislation page and deals with the timing framework for registering and deregistering for corporate tax. Timeline rules like these can affect penalty exposure and the sequencing of steps when businesses are set up, restructured, sold or wound down. The full text should be reviewed before relying on any specific deadline.
What this means for you: If you are opening, closing, restructuring or selling a business, check the new timelines before acting so you do not trip a registration or deregistration deadline.
AED 353.5 million in VAT refunded to UAE nationals building new homes
The FTA announced on 22 July 2026 that it approved roughly 4,000 VAT refund applications from UAE nationals constructing new residences during the first half of 2026, with total refunds of AED 353.5 million. The figures reflect the FTA’s earlier 2026 initiative expanding the categories of construction expenditure eligible for refund, which applies to claims submitted on or after 1 January 2026. Newly covered items include staff quarters, home gyms and game rooms, integrated security and smart-home systems, electronic doors, swimming pools, fountains, landscaping, and demolition-and-rebuild costs, subject to the stated conditions. Proper structuring of contracts, invoices and ownership arrangements is key to preserving eligibility.
What this means for you: If you are a UAE national building or rebuilding a family home, a significantly wider range of costs may now be refundable — keep your documentation in order from day one.
Family & Personal Matters
Dubai family disputes must now go through the Family Guidance and Reconciliation Committee
Dubai’s Law No. (9) of 2025, amending Law No. (18) of 2021 on conciliation, expressly confirms that personal status disputes must go through conciliation — and that this happens through the Family Guidance and Reconciliation Committee rather than the general Centre for Amicable Settlement of Disputes. The existing procedural framework under Resolution No. (3) of 2021 is preserved until a new Judicial Council decision is issued, and the Committee may engage experts where technical input is needed. Importantly, approved conciliation agreements can carry executory force once the executory formula is affixed, with only a narrow challenge route based on fraud or deception within five business days.
What this means for you: A settlement reached at the Family Guidance stage can quickly become an enforceable instrument, so prepare your evidence and negotiating position before that first conciliation session.
New rules for federal social support, including a minimum family allowance of AED 800 per month
Cabinet Resolution No. (57) of 2025 sets out the executive regulations for Federal Decree-Law No. (23) of 2024 on Social Support and Empowerment. It establishes application requirements, eligibility mechanics and supporting-document rules for the new social-support framework, including how applications are treated where they involve spouses or children of convicted persons, persons of unknown parentage, and applicants with health disabilities. The regulations state that the minimum basic allowance for an eligible family is not to be less than AED 800 per month, and they repeal Cabinet Resolution No. (51) of 2023 on social assistance. The resolution entered into force from the day following publication.
What this means for you: Families facing financial hardship — including in divorce, maintenance or dependency situations — should check whether they now qualify for support under the new framework.
Visas & Residency
Know your grace period: overstay fines and residency rules confirmed
Official ICP service pages confirm the current residency framework that applies after a visa or permit expires. Overstaying attracts a fine of AED 50 per day once the applicable grace period ends. Grace periods vary by category: 180 days for Golden, Green and Blue Residence holders and certain family categories; 90 days for skilled workers in levels 1-3 and property owners; 60 days for residence permits issued with a guarantor or host; and 30 days for other categories. Golden, Green and Blue Residence holders are also exempt from the six-month outside-UAE re-entry restriction while their residence remains valid — though that particular service does not apply to Dubai residents.
What this means for you: If your residency status is changing — through job loss, divorce, sponsorship changes or extended travel — check which grace period applies to you before it runs out.
Financial Centres & Regulation
ADGM proposes a lighter-touch regime for business transfers
On 27 July 2026, ADGM’s Financial Services Regulatory Authority published Consultation Paper No. 2 of 2026, proposing a new framework for transfer schemes. A new Chapter 8A of the GEN Rulebook would replace the current one-size-fits-all approach for business transfers other than insurance, moving to a more proportionate regulatory notification or consent model. Insurance business transfers would remain under Part 7 of FSMR and continue to require mandatory court sanction. The FSRA says the aim is to preserve client protection while making non-insurance transfers more efficient, and the consultation closes on 21 September 2026.
What this means for you: If you hold or plan to restructure an ADGM-regulated business, transfers outside insurance could soon become faster and less procedurally burdensome — and you have until 21 September 2026 to comment.
Central Bank fines foreign bank branch AED 1.82 million over delayed liability letter
The Central Bank of the UAE published a notice dated 6 July 2026 confirming a financial sanction of AED 1,820,000 on a branch of a foreign bank licensed in the UAE. Supervisory examinations found the branch had failed to issue a liability letter within the mandated seven-day period, breaching the Central Bank’s Market Conduct and Consumer Protection Regulations and Standards. The sanction was imposed under Federal Decree-Law No. 6 of 2025 regarding the Central Bank, regulation of financial institutions and insurance business. The case shows that customer-service timelines are enforceable regulatory duties, not just internal bank policy.
What this means for you: If your bank is dragging its feet on a liability letter or similar document, you have regulatory grounds to escalate — banks are legally required to deliver within set timeframes.
Dubai’s crypto regulator names and fines an unlicensed operator
Dubai’s Virtual Assets Regulatory Authority published a notice of fines on 24 July 2026 against Shelbit General Trading L.L.C., alleging the provision of virtual-asset services in or from Dubai without a valid licence, onboarding customers without mandatory KYC checks, and unauthorised marketing. VARA said it imposed financial penalties and directed the entity to cease and desist. The regulator maintains a public list of enforcement outcomes and can deploy a range of measures, including cease-and-desist orders, licensing restrictions, take-down notices and financial penalties. The action underlines VARA’s willingness to publicly name and sanction non-compliant operators.
What this means for you: Before dealing with — or operating — any crypto business in Dubai, verify its VARA licence status, and if you offer virtual-asset services, get your licensing, KYC and marketing compliance reviewed now.
