UAE: Tax procedural rules amended

Amendments effective 1 November 2021

01 November 2021

The Federal Decree-Law No. 28 of 2021 (September 2021) amends the rules concerning tax procedures.

The amendments are effective 1 November 2021.

Among the changes are the following:

The time limits for filing applications for reconsideration, objections before the federal tax authorities or tax dispute resolution body, and appeals with the courts have been increased to 40 (from 20) business days.
The federal tax authorities are to review a reconsideration request and issue a decision within 40 (previously 20) business days from the date of receiving the application and are to inform the taxpayer / applicant of its decision within five business days from the date of issuance of the decision. In its decision, the federal tax authorities are to explicitly state reasons for the decision.
An objection before the tax dispute resolution body is not admissible if it is not filed within 40 business days from the date of being notified of a reconsideration decision by the federal tax authorities.
When filing an objection before the tax dispute resolution body, only the tax amount (instead of tax and penalties, as previously required) is to be deposited for admissibility of the case.
The tax dispute resolution body’s final decisions regarding disputes exceeding AED 100,000 (approximately U.S. $27,000) will be deemed to be executory instruments if not appealed with the competent courts within 40 (previously 20) business days from the date of notification of the outcome of the objection.
An alternate mechanism for filing objections and appeals is prescribed for federal and local government entities in tax disputes for which the UAE Cabinet will issue a decision.
As a pre-condition for filing an appeal with a competent court, a minimum of 50% (instead of 100%) of penalties, or an amount as may be decided by the court, is to be paid either as a cash transfer or bank guarantee.
Cases for waiver, refund, and payment in installments of administrative penalties are to be reviewed and approved by a special committee (previously by the federal tax authorities).

Read a November 2021 report prepared by the KPMG member firm in the United Arab Emirates

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