UAE Corporate Tax Update: Introduction of Advance Tax Payments

January 28, 2026

The Federal Tax Authority (FTA) has introduced an option for taxpayers to make advance Corporate Tax (CT) payments. Advance tax payments are applicable from financial year 2026 and may be adjusted against the next CT return or applied towards future outstanding tax liabilities.

This initiative is a welcome development, as it enables taxpayers to avoid last-minute payment challenges, and reduce the risk of late payment penalties.

Taxpayers may now make advance payments by selecting one of the following three options on the FTA portal:

Payment towards the next tax return filing: Under this option, companies with financial year ending in 2026 shall be eligible to make the advance CT payments. The advance tax amount paid will be kept on account until the next CT return is filed. Once the return is processed, the payment will be adjusted against the tax payable, and any excess will automatically be used to settle any remaining outstanding balances.

Payment towards future outstanding liabilities: Under this option, the advance payment is kept on account and will be automatically adjusted against any future tax liabilities that may arise on your FTA account.

Instalment Plan – Down Payment: This option allows taxpayers to make an advance payment specifically towards a penalties instalment plan. To proceed, taxpayers must select the relevant instalment plan application and make the required payment as instructed by the FTA. This payment helps activate the penalties instalment plan.

This development supports more proactive Corporate Tax payment planning and cash flow optimisation.