Ministry of Finance Announces Key Amendments to UAE Excise Tax Framework
New Cabinet Resolution Sharpens Compliance and Clarity
The UAE Ministry of Finance has just delivered a major update to the country’s excise tax rulebook.
On 18 December 2025, the government issued Cabinet Resolution No. (198) of 2025.
It changes key parts of the Executive Regulation of the Excise Tax Law.
This move is meant to bring the regulation in line with recent changes in the core law.
What’s in the Cabinet Resolution
Cabinet Resolution No. (198) of 2025 amends certain provisions of Cabinet Resolution No. (37) of 2017 — the rulebook that supports the UAE’s Excise Tax Law.
The changes respond directly to updates made earlier this year to the main Excise Tax law.
The new resolution focuses on several technical but important areas:
- Tax registration requirements.
- Rules for deductions of excise tax.
- Refund applications and processes.
It also tweaks other parts of the regulation to make them clearer and more up-to-date.
The Ministry made it clear that these amendments are about alignment and clarity. They help ensure the Executive Regulation matches the updated Decree-Law on excise tax.
The goal is to make the entire system clearer and easier to follow for businesses that must comply.
Officials say the changes will:
- Increase tax compliance efficiency.
- Improve procedural clarity for taxable persons.
- Support a stable business environment.
- Strengthen the sustainability of public revenues.
This is part of a wider push to update the UAE’s tax framework.
The aim is simple: make the system more transparent and keep local regulations in step with international norms.
Key Amendments Introduced
On 18 December 2025, the Ministry of Finance issued Cabinet Resolution No. 198 of 2025. It updates parts of the Excise Tax Executive Regulations.
The resolution revises sections of the original 2017 framework under Cabinet Resolution No. 37.
The aim is alignment. The regulations are being brought in line with recent changes to the Excise Tax Law.
The impact is practical. The changes affect excise tax registration. They also cover how deductions are treated. Refund request procedures have been updated as well.
Beyond that, the Ministry has adjusted other provisions. These changes close gaps. They also remove wording that had made the rules harder to apply.
The message from the Ministry is clear. Compliance should be more predictable and the process should involve less friction for businesses.
By aligning the regulations with the current law, the UAE continues to refine its tax framework. The direction is toward clearer rules and closer alignment with international standards.
Key Areas Impacted
The changes hit a few parts of the excise tax process that most businesses already know well.
Registration is one of them. The rules around who needs to register, and when, have been tightened. The idea is to reduce grey areas that had been open to interpretation.
Deductions are another. The amendments adjust how excise tax deductions are treated. This should make calculations more consistent, especially in cases where the rules were previously unclear.
Refunds are also in scope. The process for submitting refund requests has been updated, with clearer expectations around how applications are filed and reviewed.
There are other, smaller changes too. Some wording has been cleaned up. Certain procedures have been refined.
Together, these updates are meant to make compliance less awkward and more predictable in day-to-day practice.
What Businesses Need to Know
For many businesses, the impact won’t be theoretical. It will show up in the way compliance is handled day to day.
Some existing workflows may no longer fit as neatly as before. Processes that were built around the old wording may need to be revisited.
Registration is one area to watch. Businesses should check whether their current excise tax registration status still holds under the updated rules. The same goes for refund positions.
Eligibility assumptions made in the past may need a second look.
Paperwork will matter more than it did before. Record-keeping, supporting documents, internal checks all need to be maintained now more then ever, because if there were weak spots before, they are more likely to be exposed now.
The message is not panic, rather it’s attention.
Knowing where you stand early will make the adjustment easier later.
Ministry of Finance Statement
The Ministry of Finance says the amendments are part of its ongoing work on the Excise Tax system.
According to the Ministry, the changes are meant to make the rules easier to apply in practice. The focus is on procedure. Fewer grey areas. Fewer questions around how things are supposed to work.
The Ministry also linked the update to its longer-term plans for the tax system. As the law changes, the regulations need to keep up. This resolution is part of that process.
More guidance is expected. The Ministry indicated that FAQs and supporting material will be issued to help businesses understand how the amended rules apply.
How ADEPTS Supports Businesses
As the updated rules take effect, many businesses need clarity on what the changes mean for their existing excise tax position.
ADEPTS works with businesses to assess the impact of the amended Excise Tax regulations on registration status, deduction treatment, and refund positions.
There is a strong focus on fundamentals. Documentation is reviewed. Record-keeping practices are checked. Internal processes are assessed to ensure they remain consistent with the revised regulatory framework.
The aim is simple. Help businesses stay compliant, reduce uncertainty, and manage the transition without unnecessary disruption.
Conclusion
Cabinet Resolution No. 198 of 2025 is another step in the UAE’s ongoing work to refine its tax framework. The direction is consistent. Clearer rules. Tighter processes. Fewer gaps in application.
For businesses, the takeaway is practical. It’s worth reviewing how the changes affect current excise tax positions, rather than waiting for issues to surface later.
Early attention usually means fewer problems down the line. It also makes compliance easier to manage as the rules continue to settle.
References
- Ali, Mohamed. ‘Ministry of Finance Launches Digital Public Consultation on Implementation of Global Minimum Tax in UAE’. Ministry of Finance – United Arab Emirates, 15 Mar. 2024,
https://mof.gov.ae/en/news/ministry-of-finance-launches-digital-public-consultation-on-implementation-of-global-minimum-tax-in-uae/. - Authority, Federal Tax. ‘Reconsideration Request’. Federal Tax Authority –
Reconsideration Request, https://tax.gov.ae//en/services/reconsideration.request.aspx. - Cabinet Resolution No. (37) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (7) of 2017 Concerning the Excise Tax.
https://uaelegislation.gov.ae/en/legislations/1225/download. - Excise Tax.
https://u.ae/en/information-and-services/finance-and-investment/taxation/excise-tax. - ‘Home’. Ministry of Finance – United Arab Emirates, https://mof.gov.ae/en/home/.
- Ministry of Finance Announces Cabinet Resolution Amending Certain Provisions of Executive Regulation of Excise Tax.
https://www.wam.ae/en/article/bn9xt0a-ministry-finance-announces-cabinet-resolution#:~:text=ABU%20DHABI%2C%2018th%20December%2C%202025,based%20on%20the%20recent%20amendments. - Taxation. https://u.ae/cs/information-and-services/finance-and-investment/taxation.
