The definitions of the Federal-Decree Law No. (28) of 2022 referred to above shall apply to this Decision, and the following words and expressions shall have the meanings assigned against each, unless the context otherwise requires:

The number of definitions has been limited under Article 1 of the New Executive Regulation as the definitions under Article 1 of the Decree-Law also apply for the New Executive Regulation. When reviewing their legal obligations and rights, all persons must ensure they refer to the definitions in the Decree-Law in conjunction with the provisions of the New Executive Regulation.

The definition of the term “assets” has been expanded to include intangible assets. This means that the definition includes, for example, patents, brands, licenses, trademarks, computer programs, copyrights, goodwill and also customer lists. The definition of assets has a particular importance for the application of Article 18 of the New Executive Regulation.

Legislative References:
Article 1 of the New Executive Regulation defines the term “asset” as tangible and intangible assets, including equipment, machinery, goods and others, which the FTA considers to be owned, leased or used in connection with the conduct of business by any person.

1. Accounting records and commercial books shall include the following:

• a. Records and books in relation to Business, which evidence or in which payments and receipts, purchases and sales, revenues and expenditures are recorded, as well as any matters as may be required under the Tax Law or any other applicable law, including but not limited to:
  • (1) Balance sheet and profit and loss accounts.
  • (2) Records of wages and salaries.
  • (3) Records of fixed assets.
  • (4) Inventory records and statements (including quantities and values) at the end of any relevant Tax Period and records of stock counts related to inventory statements.
• b. All documents supporting the entries in the accounting records and commercial books, including but not limited to:
  • (1) Correspondence, invoices, licences and contracts related to the Business.
  • (2) Documents containing details of any election, assessment, determination or calculation made by a Taxpayer in relation to the Tax affairs of its Business, including the basis, or method of assessment, determination or calculation made.

2. In addition to the accounting records and commercial books referred to in Clause (1) of this Article, the Authority may request any other information in order to verify, through a series of auditable documents, the Person’s Tax obligations, including their responsibility to register for Tax purposes.

In addition to the records and books of the business, businesses must also retain all documents that support entries in the accounting records and commercial books of the business.

This includes, but is not limited to:

• Relevant correspondence, invoices and tax invoices, licenses and agreements/contracts related to the business.
  
• Documents containing details of any election, determination or calculation made by a taxable person in relation to its tax affairs, including the basis, method of estimation, determination made and calculation performed.
  
• Documents with respect to related party transactions and with respect to the circumstances under which such transactions were made, including, for example, transfer pricing documents.
  
  

Legislative References:
Article 2(1)(b) of the New Executive Regulation states that all documents supporting the entries in the accounting records and commercial books, including but not limited to:

• (1) Correspondence, invoices, licenses and contracts related to the Business.
  
• (2) Documents containing details of any election, assessment, determination or calculation made by a taxpayer in relation to the tax affairs of their business, including the basis, or method of assessment, determination or calculation made.

1. All accounting records, commercial books and information shall be retained and maintained in a way that enables the Authority or any employee authorised by it to verify the Tax obligations imposed on the Person concerned for the following periods, unless the Tax Law states otherwise:
   • a. A period of (5) five years following the Tax Period to which they relate in respect of a Taxable Person.
   • b. A period of (5) five years from the end of the calendar year in which the concerned document was created in respect of all Persons other than Taxable Persons.
   • c. A period of (7) seven years from the end of the calendar year in which the concerned document was created for real estate records.
2. In addition to the periods specified in Clause (1) of this Article, the Person shall retain the books and records for the following additional periods, in the following cases:
   • a. For an additional period of (4) four years or until the dispute is finally settled, whichever is later in case of dispute between the Person and the Authority in respect of the Person’s Tax obligations.
   • b. For an additional period of (4) four years in case the Person is subject to an ongoing Tax Audit.
   • c. For an additional period of (4) four years in case the Authority notified the Person of its intention to conduct a Tax Audit prior to the expiry of the period set out in Clause (1) of this Article.
   • d. For an additional period of (1) one year starting from the date of submission of a Voluntary Disclosure in respect of the Taxable Person that submits a Voluntary Disclosure in the fifth year from the end of the relevant Tax Period.
3. Subject to Clauses (1) and (2) of this Article, the Legal Representative shall retain the books and records of the Person he is representing for a period of (1) one year from the date on which such legal representation expires.

All accounting records, commercials books and all documents and information referred to under Article 2 of the New Executive Regulation are to be held in a way to enable the FTA to conduct its tax audits and verify a person’s compliance with its tax obligations. They must also be maintained for defined periods depending on whether a person is a taxable person or not or depending on the nature of the record or document.

• The New Executive Regulation specifies that, for real estate records, the retention period is seven years from the end of the calendar year in which such record or document was created.
  For example, if a property was sold on 2 January 2025, the end of the calendar year in which the record is created would be 31 December 2025. Consequently, the related records and accounts must be retained until 31 December 2032.
  
• The general document retention period of five years will be extended by one year starting from the date of submission of a voluntary disclosure in the fifth year from the end of the relevant tax period.
  This means, for example, that a taxable person who discovers an error requiring a voluntary disclosure related to a tax period ending on 31 December 2019, and submits the voluntary disclosure application on 14 June 2024 (i.e. in the fifth year from the end of the relevant tax period), the person is required to retain the related records until 14 June 2025 although the retention period previously would have ended on 31 December 2024, except for real estate records and related documents.
  
• Legal representatives, as defined under Article 1 of the Decree-Law, are required to retain the required books and records of the person they are representing for a period of one year from the date on which such legal representation ends.
  The retention periods under Article 3(1) and (2) of the New Executive Regulation remain applicable when a person has been appointed a legal representative and will continue to apply in the event that legal representation ends for that person. The period of one year is an onus on the legal representative.
  
  

Legislative References:
Article 3(1)(c) of the New Executive Regulation states that all accounting records, commercial books and information shall be retained and maintained in a way that enables the FTA or any employee authorised by it to verify the tax obligations imposed on the person concerned for a period of (7) seven years from the end of the calendar year in which the concerned document was created for real estate records, unless the tax Law states otherwise.

Article 3(2)(d) of the New Executive Regulation states that, in addition to the periods specified in Clause (1) of this Article, the person shall retain the books and records for an additional period of (1) one year starting from the date of submission of a voluntary disclosure in respect of the taxable person that submits a voluntary disclosure in the fifth year from the end of the relevant tax period.

Article 3(3) of the New Executive Regulation states that, subject to Clauses 1 and 2 of this Article, the legal representative shall retain the books and records of the person he is representing for a period of (1) one year from the date on which such legal representation expires.

1. The Authority may accept data, information, records and any other documents related to any Tax that are submitted to the Authority in English, and the Authority may, at its discretion, request the Person to translate some or all of them into Arabic.
2. The translation of any Tax Return, data, information, records, documents or other books into Arabic must be approved in accordance with the law regulating translation in the State, and submitted to the Authority within the period it specifies.

Under the Previous Executive Regulation, the tax return, data, information, records and any other documents related to tax, had to be submitted, by default, to the FTA in Arabic.
Under the New Executive Regulation, the FTA may now accept the tax return, data, information, records and any other documents related to tax to be submitted in English or Arabic.
If the documents were submitted in English, the FTA may, at its discretion, request to translate some or all documents into Arabic within a period that the FTA will specify in its request. The translation into Arabic must be approved in accordance with the law regulating translations in the UAE, which implies the requirement of using a translator who is on the translators list as defined under the Federal Law No. 6 of 2012.

Legislative References:
Article 5(2) of the New Executive Regulation states that the translation of any tax return, data, information, records, documents or other books into Arabic must be approved in accordance with the law regulating translation in the UAE, and submitted to the FTA within the period it specifies.

1. A Tax Registration application shall be submitted to the Authority in the form and manner approved by it, and the Authority may specify any supporting documents to be submitted for that purpose.
2. The Authority shall review the Tax Registration application in accordance with the rules adopted by the Authority in this regard.
3. Tax Registration shall be finalised by issuing the Tax Registration Number for the applicant or by reactivating a previous Tax Registration Number if the applicant has a suspended Tax Registration Number.
4. A Registrant shall notify the Authority, in the form and manner approved by it, within (20) twenty Business Days of any change to its data kept with the Authority, including:
   • a. Name, address and email address.
   • b. Trade licence activities.
   • c. Legal entity type, partnership agreement for unincorporated partnerships and articles of association or its equivalent.
   • d. Nature of the Business of the Registrant.
   • e. The address from which any Business is conducted by the Registrant.
5. A Tax deregistration application shall be submitted to the Authority in the form and manner approved by it, and the Authority may specify any supporting documents to be submitted for that purpose.
6. The Authority shall review the Tax deregistration application, in accordance with the rules approved by it in this regard.
7. In cases where the Registrant does not submit a deregistration application, the Authority may deregister such Registrant in accordance with the controls and procedures stated in the Tax Law.
8. Tax deregistration shall be finalised by suspending the Tax Registration Number.
9. The Authority shall notify the Person of its Tax Registration, deregistration or reactivation based on the mechanism adopted by the Authority in this regard.

Under the New Executive Regulation, the list of instances is expanded in which registrants are required to notify the FTA of changes to their business data to include notification of the following changes:

• E-mail address.
  
• Trade licence activities.
  
• Legal status and partnership agreement for unincorporated partnerships.
  The FTA may, according to the New Executive Regulation, at its discretion but in accordance with the relevant Tax law, deregister a registrant where the person is required to deregister for a specific tax type but fails to submit a deregistration application.
  This would, for example, include the following instances:
  
• A person continuously submits nil returns for Excise Tax, or where the value of supplies/taxable expenses do not meet the voluntary registration threshold for the purposes of VAT registration.
  
• A person registered for Excise Tax ceases to manufacture or import excise goods.
  
  

Legislative References:
Article 6(4) of the New Executive Regulation states that a registrant shall notify the FTA, in the form and manner approved by it, within (20) twenty business days of any change to their data kept with the FTA, including:

• a. Name, address and email address.
  
• b. Trade licence activities.
  
• c. Legal entity type, partnership agreement for unincorporated partnerships and articles of association or its equivalent.
  
• d. Nature of the business of the Registrant.
  
• e. The address from which any business is conducted by the registrant.
  
  

Article 6(7) of the New Executive Regulation states that, in cases where the registrant does not submit a de-registration application, the FTA may de-register such registrant in accordance with the controls and procedures stated in the Tax Law.

The government entities that grant licences to Persons carrying out Business shall, within (20) twenty Business Days of the issuance or renewal of the licence, notify the Authority in the manner specified by it. The notification shall include the following:

1. The name of the licensee.
2. The type, number and date of issuance of the trade licence.
3. The registered address of the licensee.
4. Description of the activities of the Business.
5. The details of the owners, partners and directors.
6. Any other information requested by the Authority.

Under the Previous Executive Regulation, with respect to trade licences, and now under Article 7 of the New Executive Regulation, licensing bodies in the UAE must now also notify the FTA, within 20 business days of any issuance or renewal, of a number of data regarding the license.
This obligation for licensing bodies does not exonerate the concerned registrant from his obligations under Article 6(4) of the New Executive Regulation.

Legislative References:
Article 7 of the New Executive Regulation states that the government entities that grant licences to persons carrying out business shall, within (20) twenty business days of the issuance or renewal of the licence, notify the FTA in the manner specified by it. The notification shall include the following:

• The name of the licensee.
  
• The type, number and date of issuance of the trade licence.
  
• The registered address of the licensee.
  
• The registered address of the licensee.
  
• The details of the owners, partners and directors.
  
• Any other information requested by the FTA.

1. If a Taxable Person becomes aware that a Tax Return submitted to the Authority or a Tax Assessment issued to the Taxable Person by the Authority is incorrect, resulting in a calculation of the Payable Tax according to the Tax Law being less than it should have been, the following shall apply:

• a. If the amount is more than (10,000) ten thousand Dirhams, the Taxable Person shall submit a Voluntary Disclosure to the Authority within (20) twenty Business Days from the date when the Taxable Person became aware of the error.
• b. If the amount is equal to (10,000) ten thousand Dirhams or less, the Taxable Person shall do the following:
  • (1) If the Taxable Person is obligated to submit a Tax Return to the Authority, correct the error in the Tax Return that has not become due for submission for a previous Tax Period or in the Tax Return for the Tax Period in which the error has been discovered, whichever is earlier.
  • (2) Submit a Voluntary Disclosure to the Authority within (20) twenty Business Days from the date of becoming aware of the error, in the event that there is no Tax Return through which the error can be corrected according to subparagraph (1) of this paragraph.

2. If a Taxpayer becomes aware that a Tax Refund application submitted to the Authority is incorrect, resulting in a calculation of a Refund to which it is entitled according to the Tax Law being more than the correct amount, the Taxpayer shall submit a Voluntary Disclosure to the Authority within (20) twenty Business Days from the date when the Taxpayer became aware of the error, unless the error was a result of an incorrect Tax Return or Tax Assessment, in which case the provisions of Clause (1) of this Article shall apply.
3. If a Taxpayer becomes aware of an error or omission in the Tax Return submitted to the Authority without there being a difference in Due Tax, the Taxpayer shall correct the error or submit a Voluntary Disclosure to the Authority as may be specified by the Authority.
4. For the purposes of implementing the provisions of this Article, the Voluntary Disclosure shall be submitted in the form and manner specified by the Authority.

If a taxpayer becomes aware of an error or omission in a tax return submitted to the FTA that did not impact on the due tax for that tax period, the person is required to submit a voluntary disclosure to rectify the error.
Errors with no impact on due tax include:

• Failing to report imported services, where the business is entitled to full input tax recovery in respect of the supply.
  
• Reporting supplies in Box 1 of the VAT return against an Emirate other than the Emirate in which supplies should have been recorded.
  
  

Legislative References:
Article 10(3) of the New Executive Regulation states that if a taxpayer becomes aware of an error or omission in the tax return submitted to the FTA without there being a difference in due tax, the taxpayer shall correct the error or submit a voluntary disclosure to the FTA as may be specified by the FTA.

1. The Authority shall notify the Person, its Tax Agent or Legal Representative, as applicable, at the address registered with the Authority by any of the following means:
   • a. Post, registered post, email, mobile text message, smart applications or the electronic system of the Authority.
   • b. Posting in a prominent place in the Premises of the Person.
   • c. Any other means as may be agreed in writing by the Person and the Authority.
2. For the purposes of this Article, the address registered with the Authority includes, but not limited to, the address provided by the Person to the Authority or the address of its usual or last known place of residence or Business.

The means of notification by the FTA towards a person now also includes text messages on mobile phones, notifications through smart applications, and notifications through the FTA’s electronic systems. With respect to smart application, it should be noted that the FTA’s mobile application can be downloaded by both iOS and Android users since 17 April 2023 and 15 May 2023, respectively.
As under the Previous Executive Regulation, postings of notifications in the premises of the person must be made on a prominent place such as the reception area. Any other means to be used for the notification than the means listed under Article 11 of the Executive Regulation, must be agreed in writing by the person and the FTA. A verbal agreement will not be in line with the New Executive Regulation.

Legislative References:
Article 11(1) of the New Executive Regulation states that the FTA shall notify the person, its tax agent or legal representative, as applicable, at the address registered with the FTA by any of the following means:

• a. Post, registered post, email, mobile text message, smart applications or the electronic system of the FTA.
  
• b. Posting in a prominent place in the premises of the person.
  
• c. Any other means as may be agreed in writing by the person and the FTA.
  

1. A natural person wishing to be listed in the Register of Tax Agents shall satisfy all of the following conditions:

• a. Be of good conduct and behaviour.
• b. Have never been convicted of a crime or misdemeanour prejudicial to honour or honesty, even if he has been rehabilitated.
• c. Have the minimum education and relevant experience in Tax, accounting or law, in any of the following forms:
  • (1) Experience of at least (3) three years obtained in the last (5) five years and hold at least a certified bachelor degree or Masters in tax, accounting or law from an education institution recognised by the competent authority in the State.
  • (2) Experience of at least (3) three years obtained in the last (5) five years and hold a certified bachelor degree in any other field from an educational institution recognised by the competent authority in the State, in addition to a valid professional qualification from a recognised institution, as may be prescribed by the Authority.
  • (3) Experience of at least (5) five years obtained in the last (8) eight years and hold a certified bachelor degree in any other field from an education institution recognised by the competent authority in the State.
• d. Complete any necessary training specified by the Authority and pass any qualifying examination specified by the Authority.
• e. Have the ability to communicate orally and in writing in Arabic or English.
• f. Hold or be covered under a valid professional indemnity insurance that is appropriate to the nature and size of the Tax Agent’s Business.
• g. Has a licence or works for an entity which has a licence from the competent authority.
• h. Must not be a current member of the Committee.

2. A juridical person wishing to be listed in the Register of Tax Agents shall satisfy all of the following conditions:

• a. Be licenced as an audit, tax or law firm.
• b. Hold or be covered under a valid professional indemnity insurance that is appropriate to the nature and size of its Business.
• c. At least one director or partner that meets all of the natural person requirements in Clause (1) of this Article, is supervising the services provided by the juridical person and does not work for another juridical person or for its benefit.
• d. Meet any additional conditions prescribed by the Authority.

3. The listing application shall be submitted to the Authority in the form and manner prescribed by the Authority.
4. The Authority may, prior to deciding on the listing application in the Register, request further information from the applicant, request an interview with the natural person in accordance with Clause (1) of this Article, or the partner or director in accordance with paragraph (c) of Clause (2) of this Article, as the case may be, or check references and documents provided in the application.
5. The Authority may specify the provisions related to procedures for listing Tax Agents, continuation, renewal, suspension and cancellation of the listing.

Tax Agents – Natural persons
With the introduction of Corporate Tax in the UAE, the system of tax agents in the UAE is being updated. The updates are around specialism, experience required, education, registering as natural vs. juridical persons, language, procedures for tax agent listing and renewal and professional behaviour and integrity.
The New Executive Regulation provides the legal framework for the system of tax agents and this framework will be further regulated through Decisions that will, amongst others, clarify requirements around continuous professional development, the national and international bodies that the FTA will recognise who can provide valid professional certification for the purposes of registering tax agents, and the number of natural person tax agents required for a juridical tax agent to be listed.
A natural person wishing to register as a tax agent must have at least the following education and relevant tax, accounting or legal experience:

• Three years relevant experience obtained in the preceding five years, plus a Bachelor or Masters degree in tax, accounting, or law from an educational institution recognized by the UAE competent authorities. The certification of the degree must be done in line with the UAE applicable legislation;
  
• Three years relevant experience obtained in the preceding five years plus a Bachelor or Masters degree in any other field (other than tax, accounting, or law) from an educational institution recognized by the UAE competent authorities, and a valid professional qualification from an approved institution as specified by the FTA for purposes of presenting such qualification. The certification of the degree must be done in line with the UAE applicable legislation; or
  
• Five years relevant experience obtained in the preceding eight years plus a Bachelor or Masters degree in any field from an educational institution recognized by the UAE competent authorities. The certification of the degree must be done in line with the UAE applicable legislation.
  The natural person tax agent shall need to pass a qualification test, as will be specified by the FTA, whereby distinct tests will be in place for indirect tax and Corporate Tax. The tax agent shall also complete the necessary training, which will be on an ongoing basis, as specified by the FTA.
  It is no longer a requirement for the tax agent to:
  
• be able to communicate in both Arabic and English as fluency in either of these languages is acceptable.
  
• submit proof that the person is medically fit to perform the duties of the profession.
  Members of the Tax Dispute Resolution Committee are not allowed to be registered as tax agents.
  
  

Legislative References:
Article 12(1)(c) of the New Executive Regulation states that a natural person wishing to be listed in the register of tax agents shall have the minimum education and relevant experience in tax, accounting or law, in any of the following forms:

• (1) Experience of at least (3) three years obtained in the last (5) five years and hold at least a certified bachelor degree or masters in tax, accounting or law from an education institution recognised by the competent authority in the UAE.
  
• (2) Experience of at least (3) three years obtained in the last (5) five years and hold a certified bachelor degree in any other field from an educational institution recognised by the competent authority in the UAE, in addition to a valid professional qualification from a recognised institution, as may be prescribed by the FTA.
  
• (3) Experience of at least (5) five years obtained in the last (8) eight years and hold a certified bachelor degree in any other field from an education institution recognised by the competent authority in the UAE.
  

Article 12(1)(e) of the New Executive Regulation states that a natural person wishing to be listed in the register of tax agents shall that have the ability to communicate orally and in writing in Arabic or English.

Article 12(1)(h) of the New Executive Regulation states that a natural person wishing to be listed in the register of tax agents shall the natural person tax agent must not be a current member of the Committee.

Tax Agents – Juridical persons
The concept of a juridical person tax agent has been added in the UAE tax legislation. To be registered as tax agent, a juridical person tax agent must meet the following requirements:

• Hold a trade license reflecting that the legal person is licensed as an audit, tax or law firm.
  
• Hold or be covered under a valid professional indemnity insurance that is appropriate to the nature and size of the business.
  
• Have at least one partner or director who meets all of the requirements to be eligible to register and registers with the FTA as a natural person tax agent who supervises the services provided by the juridical person, and does not work for another juridical person or for its benefit.
  
• Meet any additional conditions prescribed by the FTA.
  It must be noted that tax agents will be listed separately as Corporate Tax and Indirect tax (VAT and Excise Tax) agents. Separate training and qualifying examinations will be specified or prescribed.
  A tax agent can be listed for both Corporate Tax and Indirect tax but can only represent a person for the category that he has been appointed for by that person.
  
  

Legislative References:
Article 12(2) of the New Executive Regulation states that a juridical person wishing to be listed in the register of tax agents shall satisfy all of the following conditions:

• a. Be licensed as an audit, tax or law firm.
  
• b. Hold or be covered under a valid professional indemnity insurance that is appropriate to the nature and size of its business.
  
• c. At least one director or partner meets all of the natural person requirements in Clause 1 of this Article, is supervising the services provided by the juridical person and does not work for another juridical person or for its benefit.
  d. Meet any additional conditions prescribed by the FTA.
  

1. The Authority shall review the listing applications and shall either issue its decision or request further information within (15) fifteen Business Days from the date of receiving the application.
2. If the Authority requests further information under Clause (1) of this Article, the Authority shall issue its decision within (15) fifteen Business Days from the date of receiving the additional information.
3. If the Authority approves the listing application in the Register, it shall inform the applicant within (5) five Business Days and request the payment of due fees.
4. The fees due in accordance with Clause (3) of this Article must be paid within (20) twenty Business Days from the date of Notification of the approval. If the fees due are not paid within this period, the application shall be considered cancelled.
5. The Authority shall list the Person in the Tax Agents Register within (5) five Business Days from the date of payment of the fees.
6. The Authority may reject an application for listing a Person in the Register in any of the following cases:
   • a. The Person fails to meet any of the conditions specified in Article (12) of this Decision.
   • b. If the listing the Person would adversely affect the integrity of the Tax system in the State.
7. If the application is rejected, the Authority shall notify the applicant of that within (5) five Business Days from the date of the Authority’s decision to reject the application.
8. The listing in the Register shall be for three (3) three years for natural person and (1) one year for a juridical person from the date of listing and the Tax Agent may apply to the Authority to renew the listing no later than (20) twenty Business Days before the expiration of its listing and shall pay the required fees by the date specified by the Authority.
9. Any renewal request submitted after the elapse of the period set out in Clause (8) of this Article shall be treated as a new application and must meet the conditions set out in Article (12) of this Decision.
10. If the Tax Agent does not make an application to renew its listing before the expiration of the durations referred to in Clause (8) of this Article, its registration shall be cancelled and its link to all the Persons it represents with the Authority shall be revoked, as of the expiration date of its listing in the Register.
11. The Tax Agent shall notify the Authority in the event that it has ceased to practise as a Tax Agent in accordance with Clause (2) of Article (13) of the Decree-Law in the form and manner specified by the Authority.
12. The Authority may delist the Tax Agent upon its own request.
13. The Authority shall delist the Tax Agent from the Register in any of the following cases:
    • a. If the Authority has determined that the Tax Agent is unable to fulfil its duties or functions, or is no longer meeting the conditions specified in Article (12) of this Decision.
    • b. If the Authority has serious grounds to believe that the continued listing of the Person as a Tax Agent would adversely affect the integrity of the Tax system in the State.
    • c. If the Tax Agent committed a serious violation of the provisions of the Decree-Law or the Tax Law or committed or participated in Tax Evasion.
    • d. If the Authority found out that the Tax Agent is a current member of the Committee.
14. The Authority shall notify the Tax Agent and its principals of the delisting within (5) five Business Days of the decision, and to notify the Tax Agent of the reasons for this decision.
15. Clause (14) of this Article shall result in the Tax Agent being delinked from all Persons it represents with the Authority, after (5) five Business Days from the date of Notification of the Authority’s decision.

The New Executive Regulation stated detailed procedures for listing and delisting tax agents, including:

• If a person fails to pay the relevant fees to be listed as a tax agent within 20 business days from the date of being notified of meeting the tax agent eligibility criteria, the application to be listed as a tax agent is considered to be cancelled.
  In such instance, a new application may be submitted if the person wishes to be listed as a tax agent.
  
• Every natural person tax agent is required to renew his/her tax agent registration every three years whereas juridical tax agents are required to renew their registration every year.
  Renewal applications have to be submitted at least twenty business days before the expiration of the tax agent’s listing, and the relevant renewal fee has to be paid to the FTA within the prescribed period.
  
• Any renewal request submitted later than 20 business days before the date the listing expires, is treated as a new application and not a renewal request.
  If a tax agent fails to apply for a renewal before the expiry of the listing, the person will be removed from the tax agent list and the person will no longer be allowed to practice as a tax agent.
  In such instance, the person may submit a new application (including all the required documents) to be listed as a tax agent.
  Furthermore, the person will be delinked from all taxpayers for which the person acted as tax agent.
  

The FTA is obliged to de-list a tax agent if:

• It was proven to the FTA that the tax agent is unable to fulfil its duties or functions, or no longer meets the conditions to be eligible to be listed as a tax agent.
  
• The FTA has serious grounds to believe that the continued listing of the person as a tax agent would adversely affect the integrity of the tax system in the UAE.
  
• The tax agent committed a serious violation of the provisions of the Decree-Law or the tax law, or committed, participated in or facilitated tax evasion.
  
• The FTA becomes aware that the tax agent is a current member of the Tax Dispute Resolution Committee.
  
  

Legislative References:
Article 13(4) of the New Executive Regulation states that the fees due in accordance with Clause 3 of this Article must be paid within (20) twenty business days from the date of notification of the approval. If the fees due are not paid within this period, the application shall be considered canceled.

Article 13(8) of the New Executive Regulation states that the listing in the register shall be for three (3) three years for natural person and (1) one year for a juridical person from the date of listing and the tax agent may apply to the FTA to renew the listing no later than (20) twenty business days before the expiration of its listing and shall pay the required fees by the date specified by the FTA.

Article 13(9) of the New Executive Regulation states that any renewal request submitted after the elapse of the period set out in Clause 8 of this Article shall be treated as a new application and must meet the conditions set out in Article 12 of the New Executive Regulation.

Article 13(10) of the New Executive Regulation states that, if the tax agent does not make an application to renew its listing before the expiration of the durations referred to in Clause 8 of this Article, its registration shall be cancelled and its link to all the persons it represents with the FTA shall be revoked, as of the expiration date of its listing in the register.

Article 13(13) of the New Executive Regulation states the FTA shall de-list the tax agent from the register in any of the following cases:

• a. If the FTA has determined that the tax agent is unable to fulfil its duties or functions, or is no longer meeting the conditions specified in Article 12 of the New Executive Regulation.
  
• b. If the FTA has serious grounds to believe that the continued listing of the person as a tax agent would adversely affect the integrity of the tax system in the UAE.
  
• c. If the tax agent committed a serious violation of the provisions of the Decree-Law or the tax law or committed or participated in tax evasion.
  
• d. If the FTA found out that the tax agent is a current member of the Committee.
  
  Article 13(15) of the New Executive Regulation states that Clause 14 of this Article shall result in the tax agent being de-linked from all persons it represents before the FTA, after (5) five business days from the date of notification of the FTA’s decision.
  

1. In performing its duties, the Tax Agent shall:
   • a. Assist the Person whom the Tax Agent is representing with the Authority with its Tax obligations, according to the agreement concluded between them.
   • b. Maintain the confidentiality of any information obtained in the course of performing its duties as a Tax Agent, without prejudice to any obligation to disclose such information under the law.
   • c. Continue to meet its Continuing Professional Development requirements, as may be specified by the Authority.
   • d. Refuse to participate in any work or plan which may result in a breach of any law by any Person or may adversely impact the integrity of the Tax system.
   • e. Keep information, documents, records and data in respect of any Person represented by the Tax Agent.
2. In the course of performing its duties, the Tax Agent may rely on information provided to it by the Person it represents unless the Tax Agent has grounds to believe that such information is incorrect.

In addition to the obligations in the Previous Executive Regulation, the following have been added:

• Tax agents have to meet continuing professional development (CPD) requirements, as specified by the FTA.
  
• Tax agents are required to retain information, documents, records and data in respect of any person the tax agent represents.
  
  

Legislative References:
Article 14(1)(e) of the New Executive Regulation states that, in performing its duties, the tax agent shall keep information, documents, records and data in respect of any person represented by the tax agent.

1. The Authority shall notify the Person of a Tax Audit, at least (10) ten Business Days prior to the Tax Audit, and the Notification shall set out the possible consequences of obstructing the Tax Auditor in the exercise of his duty.
2. For the purposes of implementing the provisions of Clause (4) of Article (16) of the Decree-Law, the Authority shall notify the Person in writing of the beginning of the Tax Audit through any of the following Persons:
   • a. The occupying tenant of the Premises, if he is present at the time of beginning the Tax Audit.
   • b. The Person who appears to be in charge at the Premises, in the absence of such occupying tenant.
3. If the Authority considers that notifying the Person of the Tax Audit by the means referred to in this Article is ineffective, the Person may be notified by posting the Notification in a prominent place at the Premises where the Tax Audit will take place.

Under the New Executive Regulation, the FTA is now required to give a person at least 10 business-day notice before conducting a tax audit.
Overall, the procedures of the tax audit and the rights and obligations remain the same as already in effect. The New Executive Regulation contains some changes and updates, including:

• The right for the FTA auditor to also mark original documents for the purpose of indicating that they have been inspected.
  
• In its record of what was removed for tax audit purposes, to be provided by the FTA, the FTA must include not only the nature of a document that was removed but also a description of this document. This is for the purposes of increased clarity and legal certainty.
  
• In case the FTA intends to dispose of an asset, it can also notify other specified persons instead of the owner of the asset, of its intention where notification of the owner is not possible.
  
• A request from a person to view or obtain documents, data and information on which the FTA based an assessment of due tax, shall be met by the FTA within 10 business days (previously 20 business days) from the date of receiving the request, but subject to the exceptions under Article 19(4) of the New Executive Regulation.
  
  

Legislative References:
Article 16(1) of the New Executive Regulation states the FTA shall notify the person of a tax audit, at least (10) ten business days prior to the tax audit, and the notification shall set out the possible consequences of obstructing the tax auditor in the exercise of his duty.

1. Prior to initiation of a criminal case, the Authority may reconcile in Tax Evasion crimes and deliberate failure to settle Administrative Penalties in return for full settlement of Payable Tax and Administrative Penalties.
2. Prior to initiating a criminal case, the Authority may reconcile in Tax crimes stipulated in Clause (4) of Article (25) of the Decree-Law, after the settlement of an amount of (50,000) fifty thousand Dirhams. If any of these crimes resulted in Tax Evasion or facilitated or concealed Tax Evasion, reconciliation shall be made by paying the amount set forth in Clause (1) of this Article.
3. The public prosecution may, after initiating the criminal case, during the investigation and trial phase and before the issuance of a conviction judgment and after seeking the opinion of the Authority, reconcile in Tax crimes in return for the following amounts:
   • a. Full Payable Tax and Administrative Penalties, in addition to an amount equal to (50%) fifty percent of the evaded Tax in the crimes stipulated in Clause (2) of Article (25) of the Decree-Law.
   • b. Full Payable Tax and Administrative Penalties in addition to an amount equal to (50%) fifty percent of the evaded Tax if applicable, in the crime of deliberate failure to pay Administrative Penalties stipulated in Clause (3) of Article (25) of the Decree-Law.
   • c. An amount of (100,000) one hundred thousand Dirhams for each of the crimes stipulated in Clause (4) of Article (25) of the Decree-Law. If any of these crimes resulted in Tax Evasion or facilitated or concealed Tax Evasion, reconciliation shall be made by paying the amount set forth in paragraph (a) of this Clause.
4. The public prosecution may, after issuance of a conviction judgment, and after seeking the opinion of the Authority, reconcile in Tax crimes in return of the following amounts:
   • a. Full Payable Tax and Administrative Penalties, in addition to an amount equal to (75%) seventy five percent of the Tax evaded in crimes stipulated in Clause (2) of Article (25) of the Decree-Law.
   • b. Full Payable Tax and Administrative Penalties in addition to an amount equal to (75%) seventy-five percent of the evaded Tax if applicable, in the crime of deliberate failure to pay Administrative Penalties stipulated in Clause (3) of Article (25) of the Decree-Law.
   • c. An amount of (200,000) two hundred thousand Dirhams for each of the crimes stipulated in Clause (4) of Article (25) of the Decree-Law. If any of these crimes resulted in Tax Evasion or facilitated or concealed Tax Evasion, reconciliation shall be made by paying the amount set forth in paragraph (a) of this Clause.
5. If more than one of the acts stipulated in Clause (4) of Article (25) of the Decree-Law were committed for a single purpose, and they were indivisibly linked to each other, reconciliation for all of these acts shall take place in return for settlement of the amount set forth in paragraph (c) of Clause (3) or paragraph (c) of Clause (4) of this Article, as applicable.

For tax evasion crimes and the deliberate failure to settle administrative penalties, a person may submit a reconciliation application to the FTA before the initiation of the criminal case, provided that the person undertakes to settle the full amounts of payable tax and administrative penalties to the FTA as consideration for the reconciliation.

Also, before a criminal case is initiated, for the specific tax crimes that are specified under Article 25(4) of the Decree-Law, and where these crimes resulted in tax evasion or facilitated or concealed tax evasion, the person must first make a payment of AED 50,000 before the FTA may reconcile. Reconciliation shall be made by settling the full amounts of payable tax and administrative penalties to the FTA.

If the FTA accepts the reconciliation application, a record shall be issued containing proof of the reconciliation and its consideration. This document has to be signed by both parties, i.e. the FTA and the person who submitted the reconciliation application. The FTA will provide a copy of such record to the person after payment of the full consideration for the reconciliation.

The accused or convicted person may submit a reconciliation application to the competent federal public prosecution at any stage of the criminal case. The public prosecution shall seek the FTA’s opinion before proceeding with reconciliation procedures in tax crimes.

Depending on the stage of the criminal case, also including the stage after issuance of a conviction judgement, and on the nature of the tax crime, reconciliation can be made subject to settling the full amount of payable tax and administrative penalties plus an additional amount calculated as a percentage of the tax evaded and, in some cases, plus an additional fixed amount.

If the public prosecution accepts the reconciliation application, it shall issue a record of reconciliation after the full settlement of the full tax and administrative penalties payable and additional consideration for the reconciliation.

The record must be signed by both the competent public prosecution member and the accused or convicted person, approved by the federal attorney general, and include the following:

• The details of the accused or convicted person.
  
• A description of the charges attributed to the accused or the convicted person, the date and place of their occurrence and the articles of law applicable thereto.
  
• The value of the tax and administrative penalties payable.
  
• The percentage and value of the additional amount of consideration for the reconciliation.
  
  

Legislative References:
Article 23(2) of the New Executive Regulation states that prior to initiating a criminal case, the FTA may reconcile in tax crimes stipulated in Clause 4 of Article 25 of the Decree-Law, after the settlement of an amount of (50,000) fifty thousand Dirhams. If any of these crimes resulted in tax evasion or facilitated or concealed tax evasion, reconciliation shall be made by paying the amount set forth in Clause 1 of this Article.

1. A reconciliation application shall be submitted by the Person to the Authority in the form prepared by the Authority for this purpose, before the initiation of a criminal case. The form must include the Person’s undertaking to settle the full amounts due from him as consideration for reconciliation.
2. The Authority decides to accept or reject the reconciliation application, if the Authority decides to accept the application, a record shall be issued to that effect containing proof of reconciliation and its consideration, and signed by both parties. A copy of such record shall be handed to the Person after payment of the consideration for reconciliation.
3. A reconciliation application shall be submitted by the accused or convicted Person, as the case may be, at any stage of the criminal case to the competent federal public prosecution.
4. Prior to proceeding with the reconciliation procedures in Tax crimes, the public prosecution shall seek the opinion of the Authority, and in the event that no response is received from the Authority within (20) twenty Business Days, this shall be considered as an implicit approval of the reconciliation.
5. The public prosecution shall issue record of reconciliation after the settlement of full Tax and Administrative Penalties payable and the additional consideration for reconciliation. Such record shall be signed by both the competent public prosecution member and the accused or convicted Person, and shall be approved by the federal attorney general. The record must include the following:
   • a. The details of the accused or convicted Person.
   • b. A description of the charges attributed to the accused or convicted Person, the date and place of their occurrence and the articles of law applicable thereto.
   • c. The value of the Tax and Administrative Penalties payable.
   • d. The percentage and value of the additional amount for reconciliation.
     Evidence of settlement of the aforementioned amounts must be attached to the record. In the event that the Administrative Penalties are paid in instalments or waived in accordance with Article (50) of the Decree-Law, or if the payment of the additional consideration for reconciliation is deferred or paid in instalments in accordance with Clause (9) of this Article, a payment plan shall be attached to the record showing the deferred or installed payment, as applicable. The Authority and the Competent Court shall be notified of the approved reconciliation record, as applicable.
6. The public prosecution shall order a stay of execution of the adjudicated penalty if a reconciliation is reached during its execution, even after the sentence becomes conclusive.
7. The completion of the reconciliation in accordance with the foregoing shall result in the termination of the criminal case for the incident subject to the reconciliation and the cancellation of its consequences.
8. The multiplicity of the accused or convicted Persons in a criminal case does not preclude the public prosecution from proceeding with reconciliation procedures with one or more of them. The effect of the reconciliation extends to all the accused or convicted Persons in the same incident.
9. The public prosecution, based on the request of the accused or convicted Person, may order the deferral of the payment of the reconciliation consideration and its payment in instalment according to the following conditions:
   • a. The deferral or instalment does not include Payable Tax or Administrative Penalties.
   • b. The period of deferral or instalment must not exceed (2) two years.
   • c. The accused or convicted Person provide sufficient guarantees.
     The public prosecution shall have the right to withdraw and cancel the deferral or instalment order if the public prosecution finds a reason for that.
10. Reconciliation is considered as if it has not been taken place, and all effect it bears shall be ceased, in the event that the accused or convicted Person does not comply with Clause (9) of this Article, or if he violates the payment plan referred to in Clause (5) of this Article.
11. In all cases, the settlement of the amount of reconciliation in form of Payable Tax and Administrative Penalties shall be made to the Authority.

For tax evasion crimes and the deliberate failure to settle administrative penalties, a person may submit a reconciliation application to the FTA before the initiation of the criminal case, provided that the person undertakes to settle the full amounts of payable tax and administrative penalties to the FTA as consideration for the reconciliation.

Also, before a criminal case is initiated, for the specific tax crimes that are specified under Article 25(4) of the Decree-Law, and where these crimes resulted in tax evasion or facilitated or concealed tax evasion, the person must first make a payment of AED 50,000 before the FTA may reconcile. Reconciliation shall be made by settling the full amounts of payable tax and administrative penalties to the FTA.

If the FTA accepts the reconciliation application, a record shall be issued containing proof of the reconciliation and its consideration. This document has to be signed by both parties, i.e. the FTA and the person who submitted the reconciliation application. The FTA will provide a copy of such record to the person after payment of the full consideration for the reconciliation.

The accused or convicted person may submit a reconciliation application to the competent federal public prosecution at any stage of the criminal case. The public prosecution shall seek the FTA’s opinion before proceeding with reconciliation procedures in tax crimes.

Depending on the stage of the criminal case, also including the stage after issuance of a conviction judgement, and on the nature of the tax crime, reconciliation can be made subject to settling the full amount of payable tax and administrative penalties plus an additional amount calculated as a percentage of the tax evaded and, in some cases, plus an additional fixed amount.

If the public prosecution accepts the reconciliation application, it shall issue a record of reconciliation after the full settlement of the full tax and administrative penalties payable and additional consideration for the reconciliation.

The record must be signed by both the competent public prosecution member and the accused or convicted person, approved by the federal attorney general, and include the following:

• The details of the accused or convicted person.
  
• A description of the charges attributed to the accused or the convicted person, the date and place of their occurrence and the articles of law applicable thereto.
  
• The value of the tax and administrative penalties payable.
  
• The percentage and value of the additional amount of consideration for the reconciliation.
  
  

Legislative References:
Article 24(1) of the New Executive Regulation states that a reconciliation application shall be submitted by the person to the FTA in the form prepared by the FTA for this purpose, before the initiation of a criminal case. The form must include the person’s undertaking to settle the full amounts due from him as consideration for reconciliation.

Article 24(2) of the New Executive Regulation states that the FTA decides to accept or reject the reconciliation application, if the FTA decides to accept the application, a record shall be issued to that effect containing proof of reconciliation and its consideration, and signed by both parties. A copy of such record shall be handed to the person after payment of the consideration for reconciliation.

Article 24(3) of the New Executive Regulation states that a reconciliation application shall be submitted by the accused or convicted person, as the case may be, at any stage of the criminal case to the competent federal public prosecution.

Article 24(5) of the New Executive Regulation states that the public prosecution shall issue record of reconciliation after the settlement of full tax and administrative penalties payable and the additional consideration for reconciliation. Such record shall be signed by both the competent public prosecution member and the accused or convicted person, and shall be approved by the federal attorney general. The record must include the following:

• a. The details of the accused or the convicted person.
  
• b. A description of the charges attributed to the accused or convicted person, the date and place of their occurrence and the articles of law applicable thereto.
  
• c. The value of the tax and administrative penalties. payable.
  
• d. The percentage and value of the additional amount for reconciliation.
  

Evidence of settlement of the aforementioned amounts must be attached to the record. In the event that the administrative penalties are paid in installments or waived in accordance with Article 50 of the Decree-Law, or if the payment of the additional consideration for reconciliation is deferred or paid in installments in accordance with Clause 9 of this Article, a payment plan shall be attached to the record showing the deferred or installed payment, as applicable. The FTA and the competent court shall be notified of the approved reconciliation record, as applicable.

1. The Authority may extend the deadline for deciding on a Tax assessment review request and a request for reconsideration, which fulfil the formalities, for a period of (20) twenty Business Days if the extension is necessary to decide on the request.
2. The Committee may extend the deadline for deciding on a Tax objection, which fulfils the formalities, for a period of (60) sixty Business Days if the extension is necessary to decide on the objection.
3. The Authority may, at the request of the Persons concerned, extend the deadline for accepting the submission of a Tax assessment review request or a reconsideration request, in the cases deemed appropriate by the Authority.
4. The Committee may, upon the request of the Persons concerned, extend the deadline for accepting the submission a Tax objection if there is a reason beyond their control, sudden accident, emergency circumstances or force majeure that prevented them from submitting the Tax objection within the specified deadline.
5. For the purposes of Clauses (3) and (4) of this Article, the request must be submitted including justifications for extension and reasons related to the review, reconsideration or objection.

The FTA may extend the deadline for deciding on a tax assessment review request and a request for reconsideration for a period of 20 business days if the extension is necessary to decide on the request.

The FTA may, at the request of the concerned persons, extend the deadline for accepting the submission of a tax assessment review request or a reconsideration request, in the cases deemed appropriate by the FTA.

The Tax Disputes Resolution Committee may extend the deadline for deciding on a Tax objection for a period of 60 business days if the extension is necessary to decide on the objection.

The Tax Disputes Resolution Committee may, at the request of a concerned person, extend the deadline for accepting the submission a tax objection if the late submission of the tax objection was due to circumstances beyond the person’s control, sudden accident, emergency circumstances or force majeure that prevented them from submitting the tax objection within the specified period.

Legislative References:
Article 25(1) of the New Executive Regulation states the FTA may extend the deadline for deciding on a tax assessment review request and a request for reconsideration, which fulfill the formalities, for a period of (20) twenty business days if the extension is necessary to decide on the request.

Article 25(2) of the New Executive Regulation states that the Committee may extend the deadline for deciding on a tax objection, which fulfills the formalities, for a period of (60) sixty business days if the extension is necessary to decide on the objection.

Article 25(3) of the New Executive Regulation states that the FTA may, at the request of the persons concerned, extend the deadline for accepting the submission of a tax assessment review request or a reconsideration request, in the cases deemed appropriate by the FTA.

Article 25(4) of the New Executive Regulation states that the Committee may, upon the request of the persons concerned, extend the deadline for accepting the submission a tax objection if there is a reason beyond their control, sudden accident, emergency circumstances or force majeure that prevented them from submitting the tax objection within the specified deadline.

1. Where a Business or part thereof is subject to bankruptcy, and a trustee is appointed, the trustee shall be treated as representing the Person in respect of its Business or part thereof until the expiration date of its appointment.
2. The appointed bankruptcy trustee shall notify the Authority of his appointment within (20) twenty Business Days from the appointment date in accordance with Article (8) of this Decision.
3. The Authority shall notify the appointed bankruptcy trustee of the amount of the Due Tax and of its intention to perform a Tax Audit for specific Tax Period(s), within (20) twenty Business Days after being notified of the trustee’s appointment under Clause (2) of this Article.
4. The appointed bankruptcy trustee shall settle any Payable Tax to the Authority in accordance with the Payable Tax settlement mechanism under the Decree-Law and the Tax Law.

The FTA shall notify the appointed bankruptcy trustee of the amount of the due tax in respect of the business subject to bankruptcy and, where applicable, of its intention to perform a tax audit for specific tax period(s), within 20 business days after being notified of the trustee’s appointment.

Legislative References:
Article 27(3) of the New Executive Regulation states that the FTA shall notify the appointed bankruptcy trustee of the amount of the due tax and of its intention to perform a tax audit for specific tax period(s), within (20) twenty business days after being notified of the trustee’s appointment under Clause 2 of this Article.

1. The Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures, and its amendments, shall be abrogated.
2. Any provision contrary to or inconsistent with the provisions of this Decision shall be abrogated.
3. Decisions issued by the Authority and procedures applied by it for the implementation of the Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures and its amendments shall remain in force, insofar as they do not contradict with the provisions of this Decision until the issuance of decisions and procedures replacing them in accordance with the provisions of this Decision.

Decisions issued by the FTA and procedures applied by it for the implementation of the Previous Executive Regulation shall remain in force, insofar as they do not contradict with the provisions of the New Executive Regulation until the issuance of decisions and procedures replacing them.

Legislative References:
Article 30(3) of the New Executive Regulation states that Decisions issued by the FTA and procedures applied by it for the implementation of the Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. 7 of 2017 on Tax Procedures and its amendments shall remain in force, insofar as they do not contradict with the provisions of the New Executive Regulation until the issuance of decisions and procedures replacing them in accordance with the provisions of the New Executive Regulation.

1. This Decision shall be published in the Official Gazette and shall come into effect as of 1 August 2023.
2. As an exception to Clause (1) of this Article, Clause (2) of Article (12) of this Decision shall come into effect as of 1 December 2023.

The New Executive Regulation shall be published in the Official Gazette and come into effect on 1 August 2023, except for the provisions relating to the conditions for registering juridical tax agents which comes into effect on 1 December 2023. This 1 December date allows juridical persons to prepare for compliance with the conditions to be listed as tax agents.

Legislative References:
Article 31 of the New Executive Regulation states that:

• The New Executive Regulation shall be published in the Official Gazette and shall come into effect as of 1 August 2023.
  
• As an exception to Clause 1 of this Article, Clause 2 of Article 12 of the New Executive Regulation shall come into effect as of 1 December 2023.