The UAE has introduced several legal reforms in 2025 that directly impact foreign-owned trading companies and import/export operators. These changes reflect the country’s evolving business environment—one that increasingly values transparency, governance, and tax alignment with global standards.Among the most notable updates is the requirement for private joint-stock companies to include at least one female board member. While seemingly small, this move signals a broader shift toward corporate inclusivity and governance reform.
Another significant update relates to Value-Added Tax (VAT). Foreign service providers—including those offering software, streaming, or cloud services—are now liable to register for VAT in the UAE if their annual revenue exceeds AED 375,000. In such cases, a “reverse charge” mechanism applies, shifting tax responsibility to the local buyer.
Additionally, corporate tax filing thresholds have been revised. Companies with annual revenues above AED 50 million must submit quarterly financial disclosures and adhere to new transfer pricing regulations.
For foreign traders and import/export companies operating within or through the UAE, these changes require a proactive compliance approach. Businesses should review their governance structures, VAT obligations, and cross-border tax strategies to avoid penalties or disruptions.
In summary: The UAE is reinforcing its position as a transparent, investment-friendly hub—but with greater compliance expectations. Foreign trading firms would be wise to align early and restructure where necessary to remain competitive in this maturing regulatory landscape.
