What are the new key amendments to the Federal Tax Procedures Law in the UAE?

The new decree brings in changes to the procedures for raising a tax dispute and resolution in the UAE. The new changes have been made effective from 1 November 2021.

The new changes include the following:

Revised timelines:

For reconsideration request

• The time limit in order for a person to file a reconsideration request before the federal tax authority (FTA) I terms of a decision issued by the FTA has now been increased to forty business days. The previous time limit was that of twenty days.
• Similarly, the time limit for a reconsideration request to be reviewed by the FTA has also been extended to forty days, as compared to the previous timeline of twenty business days.

For submitting objections before TDRC

• The time limit in order for a person to file an objection to the FTA’s decision before the Tax Disputes and Resolution Committee (TDRC) has now been increased to forty business days. The previous time limit was that of twenty days.

For raising challenge before Courts:

• The time limit in order to raise an appeal to the decision issued by the TDRC’s decision before the competent Court has been now been extended to 40 business days, as compared to the previous timeline of twenty business days.

Inadmissibility Conditions:

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

Minimum Fine Payment:

Pursuant to the new decree, a prerequisite for filing an appeal before competent court requires minimum of fifty percent of the penalty requires to be paid up either by cash transfer or by bank guarantee/

Special Committee:

The new decree also establishes a special committee that will be provided additional powers in deciding any request for payment in instalments or waiver or refund request placed before its consideration.

In many ways the new decree law revisions to earlier time limits imposed by the FTA as well has further extensions in the time limit available for the FTA to review an application. The new changes have also introduced the criteria for inadmissibly of certain claims and brings in a more detailed structure in order to claim refunds or instalment options for payments.