What will change in the UAE From January 2026? New rules every resident must know to avoid fines

As the New Year’s fireworks fade over the Burj Khalifa, UAE residents aren't just waking up to a new calendar, they are waking up to a new way of living. January 1, 2026, marks the launch of a major "regulatory reset" across the Emirates.

Whether it’s what you find in your takeaway bag or how long your kids stay in school on a Friday, the country is getting a significant upgrade. Here are the top five changes you need to know to stay ahead of the curve.

Expanded ban on single-use plastics

This is the second major phase of the nationwide environmental push. Starting January 1, 2026, the UAE is banning an expanded range of single-use plastic items, including beverage cups and lids, cutlery (spoons, forks, knives, chopsticks), plates, straws, stirrers, and food containers or boxes made of Styrofoam.

The Ministry of Climate Change and Environment (MOCCAE) through Ministerial Decision No. 380 of 2022.The ban applies to the import, manufacture, and trade of these items. If a product is made of conventional plastic (not plant-based or recycled), it is prohibited.Businesses found violating this ban face a starting fine of AED 2,000. This amount can be doubled for repeat offenses within the same year, up to a maximum of AED 10,000.

To avoid these fines, residents and businesses should switch to reusable alternatives or plant-based (PLA) products, which remain exempt.

New friday prayer and school timings

Starting the first week of January 2026, the timing for Friday Jumu'ah prayers and school dismissals is changing nationwide to accommodate the standardized 12:45 PM prayer time. The General Authority for Islamic Affairs, Awqaf, and Zakat announced the prayer shift, and the KHDA (Knowledge and Human Development Authority) confirmed the specific Dubai school changes.In Dubai, all private schools must finish the school day by 11:30 AM on Fridays starting January 9, 2026. This allows students and staff enough time to reach mosques before the 12:45 PM sermon begins. Schools for older students (Grade 6/Year 7 and above) may offer online learning options for Fridays, provided they get KHDA approval.While there are no direct "fines" for parents, schools that fail to comply with these dismissal times risk regulatory action and warnings from education authorities for non-compliance with the national academic calendar and student wellbeing guidelines.

New Income Tax rules

New updates to the Tax Procedures Law take effect on January 1, 2026, introducing a strict "use it or lose it" rule for tax refunds and a much longer window for the government to audit suspected tax evaders. The Ministry of Finance through Federal Decree-Laws No. 16 and 17 of 2025 announced. Businesses and individuals can no longer carry forward overpaid VAT or credit balances indefinitely. You must claim your refund within 5 years from the end of the tax period, or the right to that money expires.

Additionally, the Federal Tax Authority (FTA) can now audit cases of suspected tax evasion for up to 15 years, a massive increase from the previous 5-year limit.Failure to conduct "due diligence" on your suppliers can lead to the denial of VAT recovery if that supplier is found to be part of an evasion chain. Furthermore, natural persons (freelancers/sole traders) with a turnover exceeding AED 1 million who fail to register for Corporate Tax face an administrative penalty of AED 10,000.

Social media permit

The deadline for individual social media influencers and content creators to obtain a professional permit is January 31, 2026. This applies to anyone who accepts payment (cash or gifts) to promote brands or services on platforms like Instagram, TikTok, and YouTube.Influencers must apply for an "individual" permit to legally conduct advertising activities. This move aims to professionalize the industry and ensure that advertisements are clearly disclosed to the public.Operating without a valid permit after the deadline can result in a fine of AED 10,000. In some cases, the influencer's social media accounts may be suspended or their business license revoked. To stay safe, you should apply for the permit through the UAE Media Council's official portal before the end of the month.

Sugar Tax

The Ministry of Finance via Cabinet Decision No. 197 of 2025 announced that sweetened beverages are being taxed is shifting from a flat rate to a tiered system based on sugar content.

Beginning January 1, 2026, the more sugar a drink contains per 100ml, the higher the tax (and price) will be. The Details: High-sugar drinks (8g or more per 100ml) will be taxed at AED 1.10 per liter, while moderate-sugar drinks (5g to 7.99g) will be taxed at AED 0.79 per liter. Drinks with less than 5g of sugar or those using only artificial sweeteners will be taxed at 0%.Manufacturers and importers who fail to provide required lab reports for their products will see their drinks automatically classified into the highest tax tier. Additionally, businesses failing to register for excise tax or file returns correctly face standard administrative penalties, which typically start at AED 10,000 for late registration.January 2026 brings smart, people-friendly changes across taxes, environment, workplace, and travel. Many rules help make life greener and more efficient, but they come with clear compliance requirements and fines if ignored.