An Overview of The New Amendments to UAE Tax Procedures Law

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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.

Tax Laws can be quite complex, and you wouldn’t want your business to suffer because of it. If you’re looking for a VAT Consultancy in Abu Dhabi – reach out to TRC Pamco, one of the experts in the field, who also undertake VAT refunds, VAT return filing in Dubai, VAT health checks, VAT registrations, and more.