An Overview of The New Amendments to UAE Tax Procedures Law

On the 16th of September 2021, the UAE Federal Tax Authority issued the Federal Decree-Law No. 28 of 2021, amending some of the provisions with regards to the provisions mentioned in the Federal Decree-Law No. 7 of 2017. The amendments on these tax procedures came into effect on 1st November 2021.

Below are some of the key changes:

  • The timeline to submit a reconsideration application to the FTA, and the timelines for the FTA to review and issue a decision has been extended from 20 business days to 40 business days.
  • If you want to file an objection to the FTA’s decision in front of the TDRC (Tax Disputes & Resolution Committee) – the timelines have increased. Previously, it was 20 days, and with the new amendments – the dispute can be filed within 40 days.
  • Once the decision has been issued by the TDRC, and you wish to raise an appeal before the competent court – you have 40 business days, instead of the previous timeline of 20 days.
  • Previously, companies would think twice before approaching the Tax Disputes & Resolution Committee, but with the recent amendment, taxpayers aren’t required to settle the penalty amount, but just the tax amount – will be quite a relief for businesses who will now not hesitate to approach the TDRC.
  • When going to the Competent Court – it is mandatory to go along with proof of 50% payment of administrative penalties as decided by the TDRC or by court. The cabinet is yet to announce whether they are reducing this percentage or not.
  • Lastly, there will be a special committee to grant installments on penalties, or waive off the penalties, or initiate refund requests.

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