Federal Tax Authority to Deploy Agentic AI Across Operations Within Two Years, Sheikh Maktoum Announces
UAE Federal Tax Authority will begin deploying Agentic AI across its operations within two years to boost service quality, compliance and financial resilience, the board heard.
Sheikh Maktoum chairs Federal Tax Authority board
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai and Chairman of the Federal Tax Authority board, chaired a meeting to review the authority’s programmes and performance.
He reviewed plans to integrate advanced technologies and initiatives aimed at improving operational efficiency and the quality of taxpayer services.
The board received a comprehensive report on ongoing projects, recent achievements and the authority’s forward-looking roadmap.
Officials outlined how digital transformation and process redesign are being used to sustain performance improvements across tax administration.
Two-year directive to implement Agentic AI
During the meeting, Sheikh Maktoum instructed the Federal Tax Authority to commence preparations to adopt Agentic AI models that can execute and lead tasks autonomously across eligible functions within a two-year timeframe.
The directive follows national guidance to transform 50 percent of government sectors, services and operations to self-directing AI systems, a move intended to accelerate decision-making and raise government service standards.
The authority was told to design an implementation plan that preserves governance, accountability and data protection while enabling predictive, automated workflows.
Officials said the shift aims to move AI from a supporting tool to a core operational system that enhances accuracy, speed and institutional resilience.
Performance metrics and taxpayer services
The board reviewed service outcomes and compliance indicators, noting particular improvements in refund processing and digital transactions.
The report showed tax refund claims for newly constructed citizen housing reached 128 million dirhams in February and March 2026, a 24 percent increase compared with 103 million dirhams recorded in the same period in 2025.
Registration figures were also presented, with 743,000 corporate tax registrants, 587,000 value-added tax registrants and 1,787 excise tax registrants recorded.
The authority additionally reported a network of 936 registered tax agents supporting compliance and taxpayer engagement across the UAE.
Advances in e-invoicing and integrated tax systems
Board members discussed the legislative and technical steps taken to support the second-pillar tax framework and the nationwide rollout of electronic invoicing.
The Federal Tax Authority and the Ministry of Finance have coordinated technical integration and procedural reforms to underpin secure, high-compliance e-invoicing, which officials say will streamline audits and reduce administrative friction.
Officials highlighted progress on the Integrated Tax System and ongoing electronic linkages with relevant government entities to speed up compliance procedures.
Platform performance metrics for the “Emirates Tax” digital services were cited to demonstrate high transaction volumes, covering registrations, returns, refund requests and payments processed through the national payment gateways.
Tobacco marking and regulatory enforcement updates
The meeting included an update on the implementation of the distinctive marking system for tobacco products and progress across its staged roll-out.
Officials reported outcomes from the first two phases and detailed operational learnings that will inform subsequent stages and enforcement actions.
The marking system, combined with enhanced digital oversight, is expected to improve regulatory transparency and support public health objectives.
Board discussions underlined the importance of coordinated enforcement between the authority and partner agencies to protect revenue and market integrity.
The chairman emphasized that improving citizens’ quality of life remains central to the authority’s work, citing the refund service for newly built homes as a notable example of people-centered policy delivery.
The authority will now develop a detailed roadmap for Agentic AI adoption that includes pilot projects, governance safeguards, workforce reskilling plans and measurable performance targets.
This plan is intended to preserve fiscal sustainability while enhancing the UAE’s competitive posture and the government’s capacity to respond to global economic shifts.
