Amendments to Tax Procedures law

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UAE Federal Tax authority (FTA) published the Federal decree law No. 28 of 2021 changing some of the provisions of Federal decree law No. 7 of 2017 on Tax procedures.

These amendments are effective from 1st Nov 2021.

There have been some important changes on the time limits for submitting reconsideration applications, appeals to Tax dispute resolution committee, objections to FTA’s decisions, time frame for appeal before the courts etc.

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Below are the key highlights of the amendments:

• Changes related to timelines: New Amendments include some changes in time-lines for different applications as per below:

S.No.	Application time	Previous time line	New Timeline
1	Reconsideration requests	20 business days	40 business days
2	Issuance of a decision on a reconsideration application by FTA	20 business days	40 business days
3	Applying for an objection on a decision made by FTA to any reconsideration application to the Tax disputes resolution committee (“TDRC”)	20 business days	40 business days
4	Challenge any decision made by TDRC before the Court	20 business days	40 business days

 

• Objection to TDRC

As per the amended provisions, when taxpayer is filing an objection to the TDRC, it is not required anymore to settle the penalty amount.  Only, the tax amount must be settled.  This will be a relief for businesses who are looking to proceed to the TDRC stage.

 

• Appeal to court

For making an appeal to Federal Primary Court it has been stated that one will be required to make payment of at least 50% of the penalties in dispute, also the payments can be settles via cash or approved bank guarantee in favor of FTA.

• Special Committee

FTA will be forming a special committee who will be responsible for making decisions over the applications of penalty waivers, permission to pay penalties in installments, and penalty refunds.

 

• Appeal by Government tax payers with TDRC

As per the new provisions, FTA will create a new mechanism for handling objections and appeals from federal or local government taxpayers.  There will be a separate cabinet decision issued in this respect in future,

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This document is only for information purposes and should not be construed as an advice. It does not necessarily cover each aspect of the topic with which it deals. You should not act upon the contents of this document without receiving formal advice on your particular circumstances.

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