What are the key new amendments to the Federal Law on Tax Procedures in the United Arab Emirates? – Tax

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United Arab Emirates: What are the key new amendments to the Federal Law on Tax Procedures in the United Arab Emirates?

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Federal Decree-Law No.28 of 2021 has been promulgated, amending the provisions of Federal Decree-Law no. 7 of 2017. The new decree makes changes to the tax dispute and resolution procedures in the United Arab Emirates. The new changes came into effect on November 1, 2021.

The new changes include the following:

Revised calendars:

For request for reconsideration

  • The time limit for a person to file a request for reconsideration with the Federal Tax Authority (FTA) I under a decision issued by the FTA is now increased to 40 working days. The previous period was that of twenty days.
  • Likewise, the deadline for a review request to be examined by the AFC has also been extended to 40 days, down from 20 working days previously.

To submit objections to the TDRC

  • The time limit for a person to file an objection to the FTA’s decision before the Tax Dispute Resolution Committee (TDRC) has been increased to 40 working days. The previous period was that of twenty days.

To challenge in court:

  • The time limit for appealing the decision rendered by the TDRC decision before the competent court is now extended to 40 working days, compared to 20 working days previously.

Conditions of inadmissibility:

The new decree introduces new provisions concerning the inadmissibility of the appeal in the following cases such as: failure to provide proof of payment of taxes to the AFC, failure to provide proof of payment of less than 50% of the admissible penalties means of payment in cash or bank guarantee to the AFC etc. (ref: article 33)

Minimum fine payment:

Pursuant to the new decree, a precondition for bringing an appeal before the competent court requires the payment of at least fifty percent of the fine either by cash transfer or by bank guarantee /

Special Commission:

The new decree also establishes a special commission which will be given additional powers to rule on any request for payment in installments or request for waiver or reimbursement submitted before its examination.

In many ways, the new Legislative Decree revising the earlier deadlines imposed by the FTA also extended the deadline for the FTA to consider an application. The new changes also introduced the criteria for inadmissibility of certain claims and introduced a more detailed structure to request refunds or installment options for payments.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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