In the application of the provisions of this Decree-Law, the following words and expressions shall have meanings assigned against each, unless the context otherwise requires:

“Business day” has been defined to mean any day of the week, except weekends and official holidays of the Federal Government. Consequently, Monday to Friday are regarded as business days, except where an official Federal Government holiday falls on one of these days.

The terms “Tax Resident” and “Tax Residency Certificate” are introduced for the purposes of determining the tax residency of a person in accordance with Article 53 of the New Tax Procedures Law.

Legislative References:
Article 1 of the New Tax Procedures Law defines the following terms:

• Business Day: Any day of the week, except weekends and official holidays of the Federal Government.
  
• Tax Residency Certificate: A certificate issued by the FTA confirming the tax residency of a person in the State, in accordance with Article 53 of the New Tax Procedures Law.
  
• Tax Resident: A person resident in the UAE in accordance with Article 53 of the New Tax Procedures Law.
  

1. If a Taxable Person becomes aware that a Tax Return submitted to the Authority or a Tax Assessment issued by the Authority is incorrect, which resulted in a calculation of Payable Tax according to the Tax Law being less than it should have been, the Taxable Person shall submit a Voluntary Disclosure.
2. If a Taxpayer becomes aware that a Tax refund application submitted to the Authority is incorrect, which resulted in the calculation of a refund amount to which he is entitled according to the Tax Law being more than it should have been, the Taxpayer shall submit a Voluntary Disclosure.
3. If a Taxable Person becomes aware that a Tax Return submitted to the Authority or a Tax Assessment issued by the Authority is incorrect, which resulted in the calculation of Payable Tax according to the Tax Law being more than it should have been, the Taxable Person may submit a Voluntary Disclosure.
4. If a Taxpayer becomes aware that a Tax refund application submitted to the Authority is incorrect, which resulted in the calculation of a refund amount to which he is entitled according to the Tax Law being less than it should have been, the Taxpayer may submit a Voluntary Disclosure.
5. If the Taxpayer discovers an error or omission in the Tax Return submitted to the Authority, where there is no difference in the amount of Due Tax, the Taxpayer must correct such return by submitting a Voluntary Disclosure.
6. The Executive Regulation shall set out the detailed provisions relating to submitting a Voluntary Disclosure to the Authority and the method of application of Administrative Penalties imposed prior to the Voluntary Disclosure.

The Tax Procedures Law No. 7 (Old Law) requires a taxpayer to submit a voluntary disclosure only where payable tax is understated or where a refund application is overstated.

Under the New Tax Procedures Law, a taxpayer is also required to submit a voluntary disclosure if the taxpayer discovers an error or omission in the submitted tax return which does not result in a difference in the due tax.

This would, for example, include the following instances:

• Incorrect Emirate-wise reporting of taxable supplies, e.g. reporting sales made by a Dubai branch in box 1a (which relates to Abu Dhabi) instead of box 1b (which relates to Dubai) of the VAT return.
• Reporting incorrect amounts for supplies in boxes 1 to 7 of the tax return which relate to sales and all other outputs, even though the VAT amount was correctly reported.

The detailed provisions relating to the submission of a voluntary disclosure and the method of application of administrative penalties imposed prior to the submission of a voluntary disclosure, will be set out in the Executive Regulation.

Legislative References:
Article 10(5) of the New Tax Procedures Law states that if the taxpayer discovers an error or omission in the tax return submitted to the FTA, where there is no difference in the amount of due tax, the taxpayer must correct such return by submitting a voluntary disclosure.

Article 10(6) of the New Tax Procedures Law states that the Executive Regulation shall set out the detailed provisions relating to submitting a voluntary disclosure to the FTA and the method of application of administrative penalties imposed prior to the voluntary disclosure.

1. The Executive Regulation shall determine the conditions, controls and procedures for registration of the Tax Agent, suspension of registration and deregistration, and the rights and obligations of the Tax Agent.
2. The Tax Agent shall notify the Authority if he ceases to practise his profession as a Tax Agent in accordance with the controls and procedures set out in the Executive Regulation.

The Tax Procedures Law No. 7 (Old law) listed the qualifying conditions for a person to be listed as a tax agent. According to the New Tax Procedures Law, these conditions will be set out in the Executive Regulation.

Legislative References:
Article 13(1) of the New Tax Procedures Law states that the Executive Regulation shall determine the conditions, controls and procedures for registration of the tax agent, suspension of registration and deregistration, and the rights and obligations of the tax agent.

1. The Authority shall issue an Administrative Penalties Assessment for the Person and notify him of the Administrative Penalties Assessment within (5) five Business Days for any of the following violations:

   a. The Person conducting Business or having a Tax obligation under this Decree-Law or the Tax Law failing to keep the required records and other information specified in this Decree-Law and the Tax Law.
   b. The Person conducting Business or having a Tax obligation under this Decree-Law or the Tax Law failing to submit the data, records and documents related to Tax in Arabic to the Authority when requested.
   c. The Taxable Person failing to submit a Tax Registration application within the timeframe specified in the Tax Law.
   d. The Registrant failing to submit a deregistration application within the timeframe specified in the Tax Law.
   e. The Registrant failing to inform the Authority of any case that requires the amendment of the information pertaining to his Tax record kept by the Authority.
   f. The Legal Representative failing to inform the Authority of his appointment within the specified timeframe, in which case the penalties will be due from the Legal Representative’s own funds.
   g. The Legal Representative failing to file a Tax Return within the specified timeframe, in which case the penalties will be due from the Legal Representative’s own funds.
   h. The Registrant failing to submit the Tax Return within the timeframe specified in the Tax Law.
   i. The Taxable Person failing to settle the Payable Tax within the timeframe specified in the Tax Law.
   j. The Registrant submitting an incorrect Tax Return.
   k. The Taxable Person or the Taxpayer submits a Voluntary Disclosure in relation to errors in the Tax Return or the Tax Assessment or Refund Application pursuant to Clauses 1 and 2 of Article 10 of this Decree-Law.
   l. The Taxable Person or the Taxpayer fails to submit a Voluntary Disclosure in relation to errors in the Tax Return or the Tax Assessment or Refund Application pursuant to Clauses 1 and 2 of Article 10 of this Decree-Law before being notified that he will be subject to a Tax Audit.
   m. The Person subject to Tax Audit, his Tax Agent or Legal Representative failing to offer facilitation to the Tax Auditor in violation of the provisions of Article 20 of this Decree-Law, in which case the penalties will be due from the Person’s, Tax Agent’s or Legal Representative’s own funds as applicable.
   n. The Registrant failing to account for Tax on behalf of another Person when the registered Taxable Person is obligated to do so under the Tax Law.
   o. Any other violation specified under the Tax Law or a Cabinet decision.
   

2. The Executive Regulation shall specify the information and data that must be included in the Administrative Penalties Assessment.

3. The Cabinet shall issue a decision that specifies the Administrative Penalties for each of the violations listed in Clause 1 of this Article in respect of this Decree-Law, the Tax Law or any other violation specified under a Cabinet decision.

4. The amount of any Administrative Penalty shall not exceed two times the amount of Tax in respect of which the Administrative Penalties Assessment was issued.

5. The imposition of any Administrative Penalty pursuant to the provisions of this Decree-Law or any other law shall not exempt any Person from the responsibility of settling the Payable Tax in accordance with the provisions of this Decree-Law or the Tax Law.

Under the Tax Procedures Law No. 7(Old Law), administrative penalties are no less than AED 500 for any violation and may not exceed (3) three times the amount of tax in respect of which the administrative penalty was levied.

The New Tax Procedures Law removes the minimum administrative penalty amount and caps the administrative penalty at two times the amount of tax in respect of which it was levied.

Legislative References:
Article 24(4) of the New Tax Procedures Law states that the amount of any administrative penalty shall not exceed two times the amount of tax in respect of which the administrative penalties assessment was issued.

1. The penalties set out in this Decree-Law shall not prejudice any more severe penalty applicable under any other law.
2. A prison sentence and a monetary penalty not less than the amount of evaded Tax and not exceeding (3) three times of it, or either of the two, shall be imposed on any Person who has committed Tax Evasion by any of the following acts:
   a. Deliberately failing to settle any Payable Tax.
   b. Deliberately understating the actual value of his Business or his revenues or failing to consolidate his related Businesses, with the intent of remaining below the relevant registration threshold, tax rate or other Tax thresholds, as specified in the Tax Law.
   c. Deliberately imposing and collecting amounts as Tax without being registered.
   d. Deliberately decreasing the Due Tax or participating in any form of Tax Evasion.
   e. Deliberately committing or omitting any other act which may constitute Tax Evasion under this Decree-Law or the Tax Law.
   
3. A prison sentence and a monetary penalty not less than the amount of the Administrative Penalty and not exceeding (3) three times of it, or either of the two, shall be imposed on any Person who deliberately does not settle a due Administrative Penalty, unless a decision is issued waiving thereof.
4. A prison sentence and a monetary penalty not exceeding (1,000,000) one million Dirhams, or either of the two, shall be imposed on anyone who commits any of the following acts:
   a. Deliberately providing false information, data and incorrect documents to the Authority.
   b. Deliberately concealing or destroying documents, information and data or other material that he is required to keep and provide to the Authority.
   c. Stealing documents or other materials that are in the possession of the Authority or deliberately misusing or destroying them.
   d. Deliberately preventing or hindering the Authority’s employees’ from performing their duties.
   
5. If any of the acts in the previous Clause has occurred which resulted in Tax Evasion or facilitating or concealing Tax Evasion, the penalty set out in Clause 2 of this Article shall apply.
6. Any Person proven to have directly participated or caused any of the crimes set out in this Decree-Law or the Tax Law shall be penalised with the penalty prescribed in this Decree-Law in accordance with the provisions on criminal participation stated in Federal Law № 31 of 2021 referred to.
7. If a monetary penalty has been imposed on several accused in one judgement and for one crime, whether they are perpetrators or accomplices, the accused shall be jointly liable for such monetary penalty.
8. Reoffending is considered an aggravating circumstance, and in the application of the provisions of this Decree-Law or the Tax Law, everyone that has been sentenced by a final judgment in one of the crimes stipulated in this Article, whatever the imposed penalty is, and then committed any of these crimes before the expiration of (5) five years from the date of the issuance of the final judgment referred to, shall be considered to be a reoffender.
9. Without prejudice to Clause 11 of this Article, everyone who has participated in a Tax Evasion crime, shall be jointly and severally liable with the Person with whom he participated, to settle the Payable Tax and Administrative Penalties.
10. The court may upon conviction publish the judgement or its summary by a suitable means and the convicted Person shall bear the cost, on the condition that such publication is upon request by the Authority to the Public Prosecution.
11. The judgement to impose a penalty under the provisions of this Decree-Law or any other law shall not exempt any Person from the liability to settle any Payable Tax or Administrative Penalties.

As per the New Tax Procedures Law, several amendments have been introduced to the provisions regulating penalties, procedures and measures, including:

• The maximum monetary penalty imposed on an act which led to tax evasion, has been reduced from five times the amount of tax evaded, to be three times the amount of tax evaded.
• Certain acts which may not result in tax evasion are now categorised as tax crimes. Where these acts result in tax evasion, the same penalties as for tax evasion will apply.
• Deliberate non-settlement of payable administrative penalties is now a tax crime punishable by law.
• Where an offence is committed before the expiration of five years from the date of the issuance of a final judgment in respect of a prior tax crime, it is considered an aggravating circumstance.
• The FTA may store, move, attach, dispose of, destroy, recycle or sell certain seized items in accordance with the procedures and controls specified in the Executive Regulation. However, full settlement of tax, administrative penalties and expenses incurred on such items shall entitle the offender to request these back.
• New provisions have been introduced in the New Tax Procedures Law establishing and regulating reconciliation in tax evasion crimes. Where the conditions for reconciliation are met, this shall result in the termination of the criminal case and the annulment of the consequences and implications of the case.

Legislative References:

Article 25 of the New Tax Procedures Law states that:

• (1) The penalties set out in the New Tax Procedures Law shall not prejudice any more severe penalty applicable under any other law.
• (2) A prison sentence and a monetary penalty not less than the amount of evaded tax and not exceeding (3) three times of it, or either of the two, shall be imposed on any person who has committed tax evasion by any of the following acts:
  • a. Deliberately failing to settle any payable tax.
  • b. Deliberately understating the actual value of his business or his revenues or failing to consolidate his related businesses, with the intent of remaining below the relevant registration threshold, tax rate or other tax thresholds, as specified in the tax law.
  • c. Deliberately imposing and collecting amounts as tax without being registered.
  • d. Deliberately decreasing the due tax or participating in any form of tax evasion.
  • e. Deliberately committing or omitting any other act which may constitute tax evasion under the New Tax Procedures Law or the tax law.
• (3) A prison sentence and a monetary penalty not less than the amount of the administrative penalty and not exceeding (3) three times of it, or either of the two, shall be imposed on any person who deliberately does not settle a due administrative penalty, unless a decision is issued waiving thereof.
• (4) A prison sentence and a monetary penalty not exceeding (1,000,000) one million Dirhams, or either of the two, shall be imposed on anyone who commits any of the following acts:
  • a. Deliberately providing false information, data and incorrect documents to the FTA.
  • b. Deliberately concealing or destroying documents, information and data or other material that he is required to keep and provide to the FTA.
  • c. Stealing documents or other materials that are in the possession of the FTA or deliberately misusing or destroying them.
  • d. Deliberately preventing or hindering the FTA’s employees’ from performing their duties.
• (5) If any of the acts in the previous Clause has occurred which resulted in tax evasion or facilitating or concealing tax evasion, the penalty set out in Clause 2 of this Article shall apply.
• (6) Any person proven to have directly participated or caused any of the crimes set out in the New Tax Procedures Law or the tax law shall be penalised with the penalty prescribed in this New Tax Procedures Law in accordance with the provisions on criminal participation stated in Federal Law No. 31 of 2021 referred to.
• (7) If a monetary penalty has been imposed on several accused in one judgement and for one crime, whether they are perpetrators or accomplices, the accused shall be jointly liable for such monetary penalty.
• (8) Reoffending is considered an aggravating circumstance, and in the application of the provisions of the New Tax Procedures Law or the tax law, everyone that has been sentenced by a final judgment in one of the crimes stipulated in this Article, whatever the imposed penalty is, and then committed any of these crimes before the expiration of (5) five years from the date of the issuance of the final judgment referred to, shall be considered to be a reoffender.
• (9) Without prejudice to Clause 11 of this Article, everyone who has participated in a tax evasion crime, shall be jointly and severally liable with the person with whom he participated, to settle the payable tax and administrative penalties.
• (10) The court may upon conviction publish the judgement or its summary by a suitable means and the convicted person shall bear the cost, on the condition that such publication is upon request by the FTA to the Public Prosecution.
• (11) The judgement to impose a penalty under the provisions of the New Tax Procedures Law or any other law shall not exempt any person from the liability to settle any payable tax or administrative penalties.

1. A criminal case in respect of the crimes set out in this Decree-Law or the Tax Law may only be initiated by a written request of the Director General.

2. Without prejudice to the cases in which the law requires confiscation, the court may, upon conviction of one of the crimes stipulated in this Decree-Law or the Tax Law, order the confiscation of the seized items and funds, without prejudice to the rights of bona fide third parties.

3. Notwithstanding Clause 2 of this Article, the Authority may conduct procedures for storing, moving, attaching, disposing of, destroying, recycling or selling of seized items where such items are perishable or subject to shortage or leakage or are in a condition that might endanger the safety of the other goods or facilities they are in, and deal with abandoned goods.

4. Any procedures taken by the Authority in respect of the seized items shall not prejudice the responsibility to settle the Payable Tax or Administrative Penalties in accordance with the provisions of this Decree-Law or the Tax Law.

5. The owner of the seized items has the right to request them back, provided that he has settled the full Tax, Administrative Penalties and expenses incurred on the items, as applicable.

6. The Authority and its employees shall not assume any responsibility for any damage caused to seized items as a result of the Authority dealing with such seized items under this Article.

7. The Executive Regulation shall specify the procedures and controls for implementing the provisions of Clauses 3, 4 and 5 of this Article.

As per the New Tax Procedures Law, several amendments have been introduced to the provisions regulating penalties, procedures and measures, including:

• The maximum monetary penalty imposed on an act which led to tax evasion, has been reduced from five times the amount of tax evaded, to be three times the amount of tax evaded.
• Certain acts which may not result in tax evasion are now categorised as tax crimes. Where these acts result in tax evasion, the same penalties as for tax evasion will apply.
• Deliberate non-settlement of payable administrative penalties is now a tax crime punishable by law.
• Where an offence is committed before the expiration of five years from the date of the issuance of a final judgment in respect of a prior tax crime, it is considered an aggravating circumstance.
• The FTA may store, move, attach, dispose of, destroy, recycle or sell certain seized items in accordance with the procedures and controls specified in the Executive Regulation. However, full settlement of tax, administrative penalties and expenses incurred on such items shall entitle the offender to request these back.
• New provisions have been introduced in the New Tax Procedures Law establishing and regulating reconciliation in tax evasion crimes. Where the conditions for reconciliation are met, this shall result in the termination of the criminal case and the annulment of the consequences and implications of the case.

Legislative References:
Article 26 of the New Tax Procedures Law states that:

• (1) A criminal case in respect of the crimes set out in the New Tax Procedures Law or the tax law may only be initiated by a written request of the director general.
• (2) Without prejudice to the cases in which the law requires confiscation, the court may, upon conviction of one of the crimes stipulated in the New Tax Procedures Law or the Tax Law, order the confiscation of the seized items and funds, without prejudice to the rights of bona fide third parties.
• (3) Notwithstanding Clause 2 of this Article, the FTA may conduct procedures for storing, moving, attaching, disposing of, destroying, recycling or selling of seized items where such items are perishable or subject to shortage or leakage or are in a condition that might endanger the safety of the other goods or facilities they are in, and deal with abandoned goods.
• (4) Any procedures taken by the FTA in respect of the seized items shall not prejudice the responsibility to settle the payable tax or administrative penalties in accordance with the provisions of the New Tax Procedures Law or the Tax Law.
• (5) The owner of the seized items has the right to request them back, provided that he has settled the full tax, administrative penalties and expenses incurred on the items, as applicable.
• (6) The FTA and its employees shall not assume any responsibility for any damage caused to seized items as a result of the FTA dealing with such seized items under this Article.
• (7) The Executive Regulation shall specify the procedures and controls for implementing the provisions of Clauses 3, 4 and 5 of this Article.

1. Prior to initiating a criminal case, the Authority may reconcile in Tax Evasion crimes and deliberate failure to settle the Administrative Penalties stipulated in this Decree-Law or the Tax Law, in return for full settlement of Payable Tax and Administrative Penalties. The Authority may, before initiating a criminal case, reconcile in the crimes stipulated in Clause 4 of Article 25 of this Decree-Law after settlement of the amounts specified in the Executive Regulation.

2. The Public Prosecution, after initiating a criminal case and before a conviction judgment is issued, may reconcile in the crimes stipulated in Clause 1 of this Article in return for full settlement of Payable Tax and Administrative Penalties, in addition to an amount equal to a percentage of the Tax evaded specified in the Executive Regulation, or the amounts that are specified in the Executive Regulation in relation to the crimes stipulated in Clause 4 of Article 25 of this Decree-Law.

3. The Public Prosecution, after a conviction judgement is issued, may reconcile in the crimes stipulated in Clause 1 of this Article in return for full settlement of Payable Tax and Administrative Penalties, in addition to an amount equal to a percentage of the evaded Tax specified in the Executive Regulation, or the amounts specified in the Executive Regulation with regard to the crimes stipulated in Clause 4 of Article 25 of this Decree-Law.

4. Reconciliation in accordance with Clauses 2 and 3 of this Article shall be after seeking the opinion of the Authority.

5. Reconciliation shall result in the termination of the criminal case and the annulment of the consequences thereof, and the Public Prosecution shall order the suspension of the execution of the penalties imposed by court if the reconciliation is made during its execution, even after the judgement has become final.

6. The Executive Regulation shall specify the conditions, controls and procedures for reconciliation stipulated in this Article.

As per the New Tax Procedures Law, several amendments have been introduced to the provisions regulating penalties, procedures and measures, including:

• The maximum monetary penalty imposed on an act which led to tax evasion, has been reduced from five times the amount of tax evaded, to be three times the amount of tax evaded.
• Certain acts which may not result in tax evasion are now categorised as tax crimes. Where these acts result in tax evasion, the same penalties as for tax evasion will apply.
• Deliberate non-settlement of payable administrative penalties is now a tax crime punishable by law.
• Where an offence is committed before the expiration of five years from the date of the issuance of a final judgment in respect of a prior tax crime, it is considered an aggravating circumstance.
• The FTA may store, move, attach, dispose of, destroy, recycle or sell certain seized items in accordance with the procedures and controls specified in the Executive Regulation. However, full settlement of tax, administrative penalties and expenses incurred on such items shall entitle the offender to request these back.
• New provisions have been introduced in the New Tax Procedures Law establishing and regulating reconciliation in tax evasion crimes. Where the conditions for reconciliation are met, this shall result in the termination of the criminal case and the annulment of the consequences and implications of the case.

Legislative References:
Article 27 of the New Tax Procedures Law states that:

• (1) Prior to initiating a criminal case, the FTA may reconcile in tax evasion crimes and deliberate failure to settle the administrative Penalties stipulated in the New Tax Procedures Law or the tax law, in return for full settlement of payable tax and administrative penalties. The FTA may, before initiating a criminal case, reconcile in the crimes stipulated in Clause 4 of Article 25 of the New Tax Procedures Law after settlement of the amounts specified in the Executive Regulation.
• (2) The public prosecution, after initiating a criminal case and before a conviction judgment is issued, may reconcile in the crimes stipulated in Clause 1 of this Article in return for full settlement of payable tax and administrative penalties, in addition to an amount equal to a percentage of the tax evaded specified in the Executive Regulation, or the amounts that are specified in the Executive Regulation in relation to the crimes stipulated in Clause 4 of Article 25 of the new Tax Procedures Law.
• (3) The public prosecution, after a conviction judgement is issued, may reconcile in the crimes stipulated in Clause 1 of this Article in return for full settlement of payable tax and administrative penalties, in addition to an amount equal to a percentage of the evaded tax specified in the Executive Regulation, or the amounts specified in the Executive Regulation with regard to the crimes stipulated in Clause 4 of Article 25 of the new Tax Procedures Law.
• (4) Reconciliation in accordance with Clauses 2 and 3 of this Article shall be after seeking the opinion of the FTA.
• (5) Reconciliation shall result in the termination of the criminal case and the annulment of the consequences thereof, and the public prosecution shall order the suspension of the execution of the penalties imposed by court if the reconciliation is made during its execution, even after the judgement has become final.
• (6) The Executive Regulation shall specify the conditions, controls and procedures for reconciliation stipulated in this Article.

1. Without prejudice to the provisions of Article 29 of this Decree-Law, a Person may submit a request to the Authority to review a Tax Assessment or part thereof and any related Administrative Penalties.
2. The request made under Clause 1 of this Article shall specify the reasons for the request and be made within (40) forty Business Days from the date the Person is notified of the Tax Assessment and the related Administrative Penalties.
3. The Authority shall review the request made under Clause 1 of this Article and issue a decision within (40) forty Business Days from the date of receiving such request, and inform the applicant of the decision within (5) five Business Days from the date of issuance of the decision.
4. The Person may submit a reconsideration request pursuant to Article 29 of this Decree-Law in respect of the decision issued under Clause 3 of this Article within (40) forty Business Days from the date the Person is notified of the decision in accordance with Clause 3 of this Article or the expiration of the timeframe within which the Authority is required to issue and notify the applicant of the decision.
5. It shall not be permissible to submit a request for a Tax Assessment Review or continue to consider it in respect of which a reconsideration request has already been filed.
6. The request submitted under Clause 1 of this Article shall be made in the form and manner specified by the Authority.

The New Tax Procedures Law allows taxpayers a new mechanism for amicable settlement of disagreements between the taxpayer and the FTA. The new mechanism is an option available before the step of submitting a reconsideration request and will only be applicable in instances where the FTA issues a tax assessment to the taxpayer. The taxpayer may request the FTA to review a tax assessment issued, or part thereof, and any related administrative penalties.

The decision issued by the FTA in respect of the tax assessment review request is subject to the normal objections and appeal process, including the applicable timelines.

Legislative References:
Article 28 of the New Tax Procedures Law states that:

• (1) Without prejudice to the provisions of Article 29 of the New Tax Procedures Law, a person may submit a request to the FTA to review a tax assessment or part thereof and any related administrative penalties.
• (2) The request made under Clause 1 of this Article shall specify the reasons for the request and be made within (40) forty business days from the date the person is notified of the tax assessment and the related administrative penalties.
• (3) The FTA shall review the request made under Clause 1 of this Article and issue a decision within (40) forty business days from the date of receiving such request, and inform the applicant of the decision within (5) five business days from the date of issuance of the decision.
• (4) The person may submit a reconsideration request pursuant to Article 29 of the New Tax Procedures Law in respect of the decision issued under Clause 3 of this Article within (40) forty business days from the date the person is notified of the decision in accordance with Clause 3 of this Article or the expiration of the timeframe within which the FTA is required to issue and notify the applicant of the decision.
• (5) It shall not be permissible to submit a request for a tax assessment review or continue to consider it in respect of which a reconsideration request has already been filed.
• (6) The request submitted under Clause 1 of this Article shall be made in the form and manner specified by the FTA.

1. The Authority or the Committee, as the case may be, may for any of the reasons specified in the Executive Regulation extend any of the periods specified in Clause 3 of Article 28, Clause 2 of Article 29 and Clause 1 of Article 33 of this Decree-Law for a period specified in Executive Regulation.
2. The Authority or the Committee, as the case may be, may at a request of a Person for any of the reasons specified in the Executive Regulation grant that Person an extension of any of the periods specified in Clause 2 of Article 28 and Clause 1 of Article 29 and Clause 1 of Article 32 of this Decree-Law.
3. A decision by the Authority or Committee, refusing the request for extension made under Clause 2 of this Article pursuant to Article 32 or 36 of this Decree-Law, shall be final and not subject to an objection or appeal, as the case may be.

The FTA may extend the following time limits, for any of the reasons, and for a period, as specified in the Executive Regulation:

• At the request of the taxpayer, the period within which a request for a tax assessment review may be submitted.
• The period within which a decision shall be issued in respect of a tax assessment review request.
• At the request of the taxpayer, the period within which a request for reconsideration may be submitted.
• The period within which a decision shall be issued in respect of a reconsideration request.

The Tax Dispute Resolution Committee may extend the following periods:

• The period within which an objection may be lodged.
• The period within which a decision shall be issued in respect of an objection.

A decision by the FTA or Tax Dispute Resolution Committee, as the case may be, to refuse a request for extension shall be final. A person can, therefore, not object or appeal the decision to disallow an extension.

Legislative References:
Article 35 of the New Tax Procedures Law states that:

• (1) The FTA or the Committee, as the case may be, may for any of the reasons specified in the Executive Regulation extend any of the periods specified in Clause 3 of Article 28, Clause 2 of Article 29 and Clause 1 of Article 33 of the New Tax Procedures Law for a period specified in Executive Regulation.
• (2) The FTA or the Committee, as the case may be, may at a request of a person for any of the reasons specified in the Executive Regulation grant that person an extension of any of the periods specified in Clause 2 of Article 28 and Clause 1 of Article 29 and Clause 1 of Article 32 of the New Tax Procedures Law.
• (3) A decision by the FTA or Committee, refusing the request for extension made under Clause 2 of this Article pursuant to Article 32 or 36 of the New Tax Procedures Law, shall be final and not subject to an objection or appeal, as the case may be.

1. The Authority shall set-off the amount requested to be refunded against any non- disputed Payable Tax or Administrative Penalties from the Taxpayer who has applied for the refund pursuant to the Tax Return or the Tax Assessment issued by the Authority before refunding any amount relating to a specific Tax.
2. The Authority may decline to refund any residual amounts under Clause 1 of this Article in any of the following cases:
   a. The Authority finds that there are other disputed Tax amounts in relation to that Taxpayer;
   b. If the person is subject to a Tax Audit, and in this case the Authority shall not decline to refund the residual amount unless the conditions set out in a decision of Authority’s board of directors have been met.
   c. According to an order from the Competent Court.
   
3. The Authority shall refund the Tax under this Article pursuant to the procedures and controls specified in the Executive Regulation.

While taxpayers may generally submit tax refund requests if the taxpayer is entitled to a refund in accordance with the relevant tax law, a provision has been introduced in the New Tax Procedures Law, entitling the FTA to reject a refund request by a taxpayer who is subject to a tax audit. The FTA’s decision in this respect will be governed by the conditions set out in a decision by the Board of Directors of the FTA.

Legislative References:
According to Article 39(2)(b) of the New Tax Procedures Law, the FTA may decline to refund any residual amounts under Clause 1 of this Article if the person is subject to a tax audit, and in this case the FTA shall not decline to refund the residual amount unless the conditions set out in a decision of FTA’s board of directors have been met.

1. If a Person fails to settle any Payable Tax within the specified timeframes under this Decree-Law and the Tax Law or Administrative Penalties, the following measures shall be taken:
   

   a. The Authority shall send the Person a notice to settle outstanding Payable Tax and Administrative Penalties within (20) twenty Business Days of the date of Notification.
   b. If the Person fails to settle after being notified pursuant to Paragraph (a) of Clause 1 of this Article, the Director General shall issue a decision obligating the Person to pay the Payable Tax and Administrative Penalties which shall be communicated within (5) five Business Days from the date of issuance of the decision with the Tax Assessment and Administrative Penalties Assessment attached thereto.
   c. The decision of the Director General regarding the Tax Assessment and Administrative Penalties Assessment shall be deemed as an executory instrument for the purposes of enforcement through the execution judge at the Competent Court.
   

2. If it appears to the Authority that the Payable Tax may be at risk of being lost, the Director General may request the Urgent Matters Judge in the Competent Court to issue an order on a petition to seize the assets of the Person that are sufficient to satisfy these amounts under control of any Person whatsoever, such assets shall be temporarily seized and cannot be dealt with unless the seizure is lifted by a judgement of the Competent Court at the request of the Director General.

3. Tax and other amounts due to the Authority in accordance with the Tax Law shall have precedence over all the funds of the debtors or Persons who are obligated to remit them to the Authority by virtue of the law, such priority shall be over all other debts except for judicial expenses.

4. Any Person who receives any amount as a Tax must pay the amount to the Authority and it shall be treated as a Payable Tax.

The New Tax Procedures Law allows the FTA to request the issuance of an order on a petition from the Urgent Matters Judge in the Competent Court to allow the seizure of a person’s assets if it appears that payable tax may be at risk of non-recovery. This includes the person’s assets which are stored by another person.

Such assets may not be dealt with unless the seizure is lifted by the competent court upon request of the FTA’s Director General.

Tax and other amounts due to the FTA in accordance with all tax laws have precedence over all other debts of the person, except for judicial expenses.

Legislative References:
Article 40 of the New Tax Procedures Law states that:

• (1) If a person fails to settle any payable tax within the specified timeframes under the New Tax Procedures Law and the tax law or administrative penalties, the following measures shall be taken:
  • a. The FTA shall send the person a notice to settle outstanding payable tax and administrative penalties within (20) twenty business days of the date of notification.
  • b. If the person fails to settle after being notified pursuant to Paragraph (a) of Clause 1 of this Article, the director general shall issue a decision obligating the person to pay the payable tax and administrative penalties which shall be communicated within (5) five business days from the date of issuance of the decision with the tax assessment and administrative penalties assessment attached thereto.
  • c. The decision of the director general regarding the tax assessment and administrative penalties assessment shall be deemed as an executory instrument for the purposes of enforcement through the execution judge at the competent court.
• (2) If it appears to the FTA that the payable tax may be at risk of being lost, the director general may request the urgent matters judge in the competent court to issue an order on a petition to seize the assets of the person that are sufficient to satisfy these amounts under control of any person whatsoever, such assets shall be temporarily seized and cannot be dealt with unless the seizure is lifted by a judgement of the competent court at the request of the director general.
• (3) Tax and other amounts due to the FTA in accordance with the tax law shall have precedence over all the funds of the debtors or persons who are obligated to remit them to the FTA by virtue of the law, such priority shall be over all other debts except for judicial expenses.
• (4) Any person who receives any amount as a tax must pay the amount to the FTA and it shall be treated as a payable tax.

1. Except in cases under Clauses 2, 3, 6 and 7 of this Article, the Authority may not conduct a Tax Audit or issue a Tax Assessment to a Taxable Person after the expiration of (5) five years from the end of the relevant Tax Period.
2. The Authority may conduct a Tax Audit or issue a Tax Assessment to the Taxable Person after (5) five years from end of the relevant Tax Period, if he has been notified of the commencement of such Tax Audit’s procedures before the expiration of the (5) five year period, provided that the Tax Audit is completed or the Tax Assessment is issued, as the case may be, within (4) four years from the date of Notification of the Tax Audit.
3. The Authority may conduct a Tax Audit or issue a Tax Assessment after the expiration of (5) five years from the end of the relevant Tax Period if such Tax Audit or Tax Assessment issuance relates to a Voluntary Disclosure submitted in the fifth year from the end of the Tax Period, provided that the Tax Audit is completed or the Tax Assessment is issued, as the case may be, within (1) one year from the date of submission of the Voluntary Disclosure.
4. The Cabinet may, according to a suggestion by the Minister, issue a decision to amend the period specified for the completion of the Tax Audit or the issuance of the Tax Assessment as per Clauses 2 or 3 of this Article.
5. No Voluntary Disclosure may be submitted after the expiration of (5) five years from the end of the relevant Tax Period.
6. In the case of Tax Evasion, the Authority may conduct a Tax Audit or issue a Tax Assessment within (15) fifteen years from the end of the Tax Period in which the Tax Evasion occurred.
7. In case of Tax Registration failure, the Authority may conduct a Tax Audit or issue a Tax Assessment within (15) fifteen years from the date on which the Taxable Person should have registered for Tax.
8. The statute of limitation set forth in this Article shall be interrupted for any of the reasons provided for in the Federal Law 5 of 1985 promulgating the Civil Transactions Law, or any federal law replacing it.

A Statute of Limitation article has been introduced to the Decree-Law, that sets the maximum timeframe in which the FTA can act. Once this period expires, the FTA is generally precluded from taking any actions such as commencing an audit or issuing a tax assessment.

Generally, the FTA may not conduct a tax audit or issue a tax assessment to a taxable person after the expiration of 5 years from the end of the relevant tax period.

As an example, the tax period for VAT from July 2022 to September 2022, with the related tax return to be filed no later than 28 October 2022, generally cannot be subject to a tax audit or the issuance of a tax assessment after 30 September 2027.

As an exception to the general rule, the FTA may conduct a tax audit or issue a tax assessment to the taxable person after 5 years from the end of the relevant tax period in the following instances:
− If the FTA notified the taxable person of the tax audit before the expiry of the 5-year period, provided that the tax audit is completed or the tax assessment is issued, within 4 years from the date of the notification of the tax audit.
For example:
If the FTA notified the taxable person on 23 December 2022 that it will audit the tax periods of 2018, this tax audit must be completed, or the relevant tax assessment must be issued, before 23 December 2026.
− If the person submitted a voluntary disclosure in the fifth year from the end of a tax period, provided that the tax audit is completed or the tax assessment is issued, within one year from the date of submission of the voluntary disclosure.
It must be noted that the registrant cannot submit a voluntary disclosure after 5 years from the end of the relevant tax period.
− In the case of tax evasion, the FTA may conduct a tax audit or issue a tax assessment within 15 years from the end of the tax period in which the tax evasion occurred.
− If a taxable person failed to register for tax within the prescribed period, the FTA may conduct a tax audit or issue a tax assessment within 15 years from the date on which the taxable person should have registered for tax.
For example:
A taxable person was required to register for VAT - under the provisions of Article 13 of the Federal Decree-Law No. 8 of 2017 on Value Added Tax, and its amendments, – from 1 July 2019. An application for registration was, however, submitted and effective from 1 January 2021. For the period from 1 July 2019 to 31 December 2020, the FTA may conduct a tax audit to be completed before 1 July 2034 or issue a tax assessment before that date.

In all cases, the statute of limitation will be interrupted where any of the reasons as stipulated in Federal Law No. 5 of 1985, promulgating the Civil Transactions Law and its amendments, occur.

Legislative References:
Article 46 of the New Tax Procedures Law states that:

• (1) Except in cases under Clauses 2, 3, 6 and 7 of this Article, the FTA may not conduct a tax audit or issue a tax assessment to a taxable person after the expiration of (5) five years from the end of the relevant tax period.
• (2) The FTA may conduct a tax audit or issue a tax assessment to the taxable person after (5) five years from end of the relevant tax period, if he has been notified of the commencement of such tax audit’s procedures before the expiration of the (5) five year period, provided that the tax audit is completed or the tax assessment is issued, as the case may be, within (4) four years from the date of notification of the tax audit.
• (3) The FTA may conduct a tax audit or issue a tax assessment after the expiration of (5) five years from the end of the relevant tax periodَّif such tax audit or tax assessment issuance relates to a voluntary disclosure submitted in the fifth year from the end of the tax period, provided that the tax audit is completed or the tax assessment is issued, as the case may be, within (1) one year from the date of submission of the voluntary disclosure.
• (4) The Cabinet may, according to a suggestion by the Minister, issue a decision to amend the period specified for the completion of the tax audit or the issuance of the tax assessment as per Clauses 2 or 3 of this Article.
• (5) No voluntary disclosure may be submitted after the expiration of (5) five years from the end of the relevant tax period.
• (6) In the case of tax evasion, the FTA may conduct a tax audit or issue a tax assessment within (15) fifteen years from the end of the tax period in which the tax evasion occurred.
• (7) In case of tax registration failure, the FTA may conduct a tax audit or issue a tax assessment within (15) fifteen years from the date on which the taxable person should have registered for tax.
• (8) The statute of limitation set forth in this Article shall be interrupted for any of the reasons provided for in the Federal Law 5 of 1985 promulgating the Civil Transactions Law, or any federal law replacing it.

1. The Cabinet– according to a suggestion by the Minister - shall issue a decision setting out the conditions based on which a Person may be considered a Tax Resident, for the purposes of the Tax Law or any agreement or arrangements to which the State is a party.
2. The Authority shall issue the Tax Residency Certificate to the Tax Resident in accordance with the provisions set out in a decision by the Cabinet.

The New Tax Procedures Law introduces tax residency certificates to be issued to tax residents. The conditions for being considered a tax resident are determined under Cabinet Decision No. 85 of 2022 on the Determination of Tax Residency, issued on 2 September 2022, which is effective from 1 March 2023.

The FTA shall issue tax residency certificates to tax residents in accordance with the provisions set out by Cabinet Decision No. 85 of 2022.

Legislative References:

Article 53 of the New Tax Procedures Law states that:

• (1) The Cabinet – according to a suggestion by the Minister – shall issue a decision setting out the conditions based on which a person may be considered a tax resident, for the purposes of the tax law or any agreement or arrangements to which the UAE is a party.
• (2) The FTA shall issue the tax residency certificate to the tax resident in accordance with the provisions set out in a decision by the Cabinet.

1. Federal Law № 7 of 2017 on Tax Procedures and its amendments shall be repealed.
2. All provisions contrary to or inconsistent with the provisions of this Decree-Law shall be abrogated.
3. The Executive Regulation of Federal Law № 7 of 2017 on Tax Procedures and its amendments and any decisions issued in implementation thereof shall remain in force insofar as they do not contradict with the provisions of this Decree-Law until the issuance an Executive Regulation and decisions replacing them in accordance with the provisions of this Decree-Law.

It should be noted that the Executive Regulation of Tax Procedures Law No. 7 and any decisions issued in implementation thereof shall remain in force insofar as they do not contradict with the provisions of the New Tax Procedures Law, until the Executive Regulation for the New Tax Procedures Law is in effect.

Legislative References:
Article 55(3) of the New Tax Procedures Law states that the Executive Regulation of Federal Law No. 7 of 2017 on Tax Procedures and its amendments and any decisions issued in implementation thereof shall remain in force insofar as they do not contradict with the provisions of the New Tax Procedures Law until the issuance an Executive Regulation and decisions replacing them in accordance with the provisions of the New Tax Procedures Law.