“E&” and “Du” will pay 9.38 billion dirhams “federal royalty” during 2025

The financial statements of E&E and Emirates Integrated Telecommunications Company (Du) showed that they paid an amount of 9,380,418 billion dirhams for the federal concession for the year 2025 (payable during 2026).
According to the financial statements of Etisalat, it paid 7,423,816 billion dirhams for the federal concession, while Du paid 1,956,602 billion dirhams for the same right.
The list of instructions regarding the application of the federal franchise fee for the telecommunications sector during the period from January 2024 to December 2026 stipulates that the federal royalty fee of 38% shall be applied to the total regulated and unregulated annual profits of the two companies, which were achieved in the UAE.
Excluded from calculating the federal royalty fee are profits resulting from international operations under the control of the company, as well as profits resulting from international operations not subject to the control of associate companies and the joint venture. It also excludes dividends or other profits resulting from international investments that are already subject to local corporate tax or a similar tax at a rate of 9% or more, as well as profit attributable to minority rights holders in companies under the control of the two companies in the UAE.
According to the regulations, the total annual amount of the franchise fee and corporate tax for “A&” Company must not be less than 5.7 billion dirhams annually, while the total amount of franchise fees and corporate tax due from “Du” must not be less than 1.8 billion dirhams annually, provided that the franchise fees and corporate tax are paid within five months from the end of the fiscal year.