The UAE federal tax authority (FTA) issued Decision No 4 of 2024 (effective from July 1, 2024) amending the FTA’s policy on issuing clarifications and directives.
- The FTA clarified that taxpayers may seek guidance from the FTA on specific queries on the application of federal tax laws through the private clarification mechanism. In particular, taxpayers may apply for an advance pricing agreement (APA) with respect to a proposed transaction or arrangement. The start date for receiving applications for APAs and the related procedures will be announced in Q4 of 2024.
- The FTA also may grant administrative exceptions under the value added tax (VAT) and excise tax laws when the conditions and controls stipulated in the tax legislation are met.
Read an August 2024 report prepared by the KPMG member firm in the UAE