UAE Federal Tax Authority Updates Policy on Issuing Clarifications and Directives

The UAE Federal Tax Authority (FTA) has published an updated Policy on Issuing Clarifications and Directives as amended by Decision No. 2 of 23 February 2026, which is effective from 1 March 2026. One of the main updates is the introduction of Directives on Tax Transactions, a new category of public decisions that establish the basis for implementing tax legislation on specific transactions. Unlike standard public clarifications, these directives are legally binding on both the FTA and taxpa…