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tax | Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax | Article (61)
Transitional Rules
1. A Taxable Person's opening balance sheet for Corporate Tax purposes shall be the
closing balance sheet prepared for financial repor ting purposes based on the accounting
standards applicable in the State on the last day of the Fiscal Year that ends immediately
Federal Law No. (47) of 2022 on Corporate and Business Tax 62
before the first Tax Period commences, subject to any conditions or adjustments that
may be prescribed by the Minister.
2. The opening balance sheet referred to in Clause 1 of this Article shall be prepared taking into consideration the arm's length principle in accordance with Article 34 of this Decree- Law.
3. For the purposes of Clauses 1 and 2 of this Article, and notwithstanding the provisions of
Article 70 of this Decree -Law, the provisions of Article 50 of this Decree -Law shall apply
to transactions or arrangements entered into on or after the date this Decree -Law is
published in the Official Gazette.
4. The Cabinet may, at the sugges tion of the Minister, issue a resolution prescribing other
transitional measures related to the implementation of this Decree -Law and the
application of its provisions.
Chapter Twenty
Closing provisions
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tax | Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax | Article (62)
Delegation of Power
The Minister may delegat e his powers under this Decree -Law, in full or in part, to the
Authority, where the Minister deems appropriate.
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tax | Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax | Article (63)
Administrative Policies and Procedures
The administrative policies, procedures and general instructions in relation to the requirem ents imposed on a Person under this Decree -Law shall be issued by the Authority
in coordination with the Ministry.
|
tax | Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax | Article (64)
Cooperating with the Authority
All governmental authorities in the State shall fully cooperate with the Authority to carry out
Federal Law No. (47) of 2022 on Corporate and Business Tax 63
whatever is required to implement the provisions of this Decree -Law and provide the
Authority with any data, information and documentation in respect of a Taxable Person or
an Exempt Person as may be requested by the Authority.
|
tax | Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax | Article (65)
Revenue Sharing
Corporate Tax revenues and Administrative Fines collected under this Decree -Law shall be
subject to sharing between the Federal Government and the Local Governments based on the provisions of a federal law issued in this regard.
|
tax | Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax | Article (66)
International Agreements
To the extent that the terms of an international agreement in force in the State are inconsistent with the provisions of this Decree -Law, the terms of the international
agreement shall prevail.
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tax | Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax | Article (67)
Implementing Decisions
1. Subject to the powers conferred to the Cabinet under this Decree -Law, the Minister and
the Authority shall issue the necessary decisions, within their respective powers, to implement the provisions of this Decree -Law.
2. The Cabinet may, at the suggestion of the Minister, issue implementing resolutions for
this Decree- Law.
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tax | Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax | Article (68)
Repeals
Any text or provisions contrary to or inconsistent with the provisions of this Decree -Law
shall hereby be repealed.
Federal Law No. (47) of 2022 on Corporate and Business Tax 64
|
tax | Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax | Article (69)
Application of this Decree -Law to Tax Periods
This Dec ree-Law shall apply to Tax Periods commencing on or after 1 June 2023.
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tax | Federal Decree by Law No. (47) of 2022 Concerning Corporate and Business Tax | Article (70)
Publication and Entry into Force of this Decree -Law
This Decree- Law shall be published in the Official Gazette and shall enter into force (15)
fifteen days following the date of its publication.
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tax | Cabinet Resolution No. (26) of 2018 Concerning the Refund value Added Tax Paid for the Services Provided in Exhibitions and Conferences | Article (1)
Definitions
In application of Provisions of this Resolution, the following words and phrases shall
have the meanings assigned to them, u nless the context indicates otherwise:
State : The United Arab Emirates.
Authority : The Federal Tax Authority.
Tax : The Value Added Tax (VAT).
Person : A natural or legal person.
Items : Material properties that can be supplied, including
real estates, water, and all kinds of energy as
determined by the Cabinet Resolution No. (52) of
2017 .
Services : Anything that can be supplied other than items . Cabinet Resolution of 20 18 Concerning the Refund of the Value Added Tax Paid for Services Provided
in Exhibitions and Conferences 2
Exhibition Services : Giving access, attendance, or participation right in
an exhibition or a conference, to grant the right to
occupy a space for the purpose of organizing an
exhibition or a conference .
Exhibition : Any event held under a permit given by relevant
Governmental authority for a period that is not
more than 7 days in order to exhibit, show or
provide items or services .
Conference : Any official meeting convened between persons of
common interest under a permit given by relevant
Governmental authority for a period that is not
more than 7 days .
Supplier : The licensed by the Authority to provide services of
exhibitions and conferences pursuant to terms and
procedures identified by the Authority .
Receiver : The person for whom services of exhibitions and
conferences are supplied or imported .
Registered : The taxable person or entity that has a tax
registration number .
Tax Period : The period determined for which due tax shall be
calculated and paid .
Tax Return : Information and details identified for tax purposes
provided by the taxable pursuant to the form
prepared by the Authority for this purpose .
Incorporation
Headquarters : The headquarter in which the business is duly
incorporated in a country under its incorporation
decision and important management decisions are
taken or central management jobs are practised
within such headquarter . Cabinet Resolution of 20 18 Concerning the Refund of the Value Added Tax Paid for Services Provided
in Exhibitions and Conferences 3
Permanent Office : Any permanent workplace other than the
incorporation headquarter in which the person
practices his work regularly or permanently. Such
place has sufficient human and technical resources
that enable the person to supply or possess items
or services. This shall include the branches that
belong to such person .
|
tax | Cabinet Resolution No. (26) of 2018 Concerning the Refund value Added Tax Paid for the Services Provided in Exhibitions and Conferences | Article (2)
Tax Refund
The Authority may refund the supplier of exhibitions and conferences services
provided that the following shall be made:
a. The supplier shall apply to refund tax relevant to exhibitions and conferences
services on his tax return and for the same tax period within which the date
when these services were supplied occurred.
b. Import application shall be equal or less that the tax imposed on the supply of
exhibitions and conferences services.
c. The receiver of exhibitions and conferences services shall not have an
incorporation headquarter of a permanent of fice in the State.
d. The receiver of exhibitions and conferences services shall not be a registered
or required to be registered in the State.
e. The receiver of exhibitions and conferences services should not have paid the
tax for the supplier.
f. The supplier sh all acquire an acknowledgement in writing from the receiver of
exhibitions and conferences services shall not that the latter does not have an
incorporation headquarter of a permanent office in the State and is not
registered or required to be registered f or VAT purposes in the State.
Cabinet Resolution of 20 18 Concerning the Refund of the Value Added Tax Paid for Services Provided
in Exhibitions and Conferences 4
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tax | Cabinet Resolution No. (26) of 2018 Concerning the Refund value Added Tax Paid for the Services Provided in Exhibitions and Conferences | Article (3)
Issuing the Executive Resolutions
The Minister of Finance shall issue the necessary Resolutions to implement the
provisions of this Resolution.
|
tax | Cabinet Resolution No. (26) of 2018 Concerning the Refund value Added Tax Paid for the Services Provided in Exhibitions and Conferences | Article (4)
Repeals
Any provision contrary to or inconsistent with the provisions of this Resolution shall
be repealed.
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tax | Cabinet Resolution No. (26) of 2018 Concerning the Refund value Added Tax Paid for the Services Provided in Exhibitions and Conferences | Article (5)
Publication and Enforcement
This Resolution shall come into force as of the date it is issued and shall be published
in the Official Gazette.
Mohammed bin Rashid Al Maktoum
Prime Minister
Issued by us:
On: 6 Ramadan 1439 A .H.
Corresponding to: 22 May 2018 AD |
tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (1)
For the purpose of applying the provisions of this Decree -Law, the following words and
expressions shall have the meanings assigned thereto respectively, unless the context requires otherwise:
The State : The United Arab Emirates .
The Minister : The Minister of Finance.
The Authority : The Federal Tax Authority.
The Tax : The Excise Tax.
Excise Goods : Goods to be defined as taxable goods by a Cabinet resolution upon the
proposal of the Minister.
Importation : Brining goods or services into the State from abroad.
Exportation : The departure of the goods from the State.
Person : A natural or legal person.
Taxable
Person : Each person that is, or ought to be, registered for the tax purposes,
pursuant to the provisions of this Decree -Law.
Designated
Area : Any fenced area intended to be a free zone and cannot be entered or
exited except through a designated road, and any area identified by the
Authority as being subject to the supervision of a warehouse keeper, in
accordance with the provisions of the Execut ive Regulations of this
Decree -Law.
Federal Decree by Law No. (7) of 2017 on Excise Tax 3
Warehouse Keep-
er : Any person who is approved and registered at the Authority to
supervise a designated area in accordance with the provisions of the
Executive Regulations of this Decree -Law.
Tax Registr ation : A procedure under which a taxable person or the legal representative
thereof registers for the tax purposes at the Authority.
Tax Registration
Number (TRN) : A unique number assigned by the Authority to each person regist ered
for the tax purposes.
Registrant : A taxable person holding a Tax Registration Number.
Importer : The person who acts as the importer of excise goods on the date of
importation for the purposes of customs clearance.
Tax Return : The information and data specified for the tax purposes and provided
by the taxable person in accordance with the form prepared by the
Authority.
Business : Any activity that is practiced on an ongoing, regular and independent
basis by any person and in any place and involves or may involve
trading in excise goods.
Refundable Tax : The paid amounts that may be refunded by the Authority to the
person, in accordance with the provisions of this Decree -Law.
Due Tax : The tax that is calculated and levied under the provisions of this
Decree -Law.
Payable Tax : The tax which becomes due to be paid to the Authority.
Deductible Tax : The tax paid, or deemed to have been paid, by the taxable person,
which may be deducted by the taxable person under the provisions of
this Decree -Law.
Tax Period : A specific period for which the payable tax shall be calculated and paid.
Administrative
Fines : Amounts to be imposed on the person by the Authority for violating
the provisions of this Decree -Law or the Tax Procedures Law.
Administrative : A decision issued by the Authority on due administrative fines.
Federal Decree by Law No. (7) of 2017 on Excise Tax 4
Fine Assessm ent
Stockpiler : A person who owns excise goods and cannot evidence that such goods
have been previously subject to the tax under the conditions stipulated
in the Executive Regulations of this Decree -Law.
Customs Legisla-
tion : Federal and local legislation regulating customs in the State.
Applying States : The GCC States, which apply the Tax Law under issued legislation.
Tax Evasion : The person’ s use of illegal means which cause reducing the amount of
the due tax, the non -payment thereof, or the refund of a tax that such
person is not entitled to refund.
Tax Audit : An action performed by the Authority to audit business records, or any
informat ion, data or goods related to a person to verify the fulfillment
of its obligations, pursuant to the provisions of this Decree -Law or the
Tax Procedures Law.
Tax Assessment : The Tax Assessment as defined in the Tax Procedures Law.
Voluntary Disclo-
sure : A form prepared by the Authority by which a taxpayer notifies the
Authority of any errors or omissions in the Tax Return, Tax Assessment
or tax refund application, pursuant to the provisions of the Tax
Procedures Law.
Tax Procedures
Law : Federal Law No. (7) of 2017 on Tax Procedures, as amended, and any
federal law superseding the same.
Chapter Two
Application, Scope and Calculation of the Tax
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (2)
Application and Scope of the Tax
1. The provisions of this Decree -Law shall apply to the excise goods determined under a
Federal Decree by Law No. (7) of 2017 on Excise Tax 5
resolution issued by the Cabinet, upon the proposal of the Minister.
2. The tax shall be levied on the following activities related to the excise goods:
a. The product ion of excise goods in the State if such production is made in the course
of exercising the business;
b. The importation of excise goods;
c. The release of excise goods from a designated area;
d. Stockpiling excise goods in the State if such goods are stockpiled in the course of
exercising the business.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (3)
Calculation of the Tax
The Cabinet shall issue, upon the proposal of the Minister, a resolution determining the tax
rates to be levied on the excise goods and the method of calculating the excise price,
provided that the tax rate to be levied on such goods does not exceed (200%) of the excise
price of the goods.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (4)
Tax Obligations
1. The due tax shall be charged on the following:
a. The person practicing any of the activities set out in Clause (2) of article (2) of this
Decree- Law;
b. The person participating in any of the activities set out in Clause (2) of article (2) of
this Decree -Law if the person who practices the activity fails to meet the tax
obligation, in accordance with what is determined by the Executive Regulations of
this Decree- Law;
c. The warehouse keeper, where excise goods are released from a designated area and the payable tax is not previously paid, in accordance with what is determined by the
Executive Regulations of this Decree -Law.
2. The following persons shall be excluded from the provisions of Clause (1) of this Article:
a. The person who imports excise goods whose value is less than the value prescribed
Federal Decree by Law No. (7) of 2017 on Excise Tax 6
by the Customs Legislation, if such excise goods are carried by the person on an
international trip and for non -commercial purposes;
b. The stockpiler in case of meeting the conditions stipulated by the Executive Regulations of this Decree Law.
Chapter Three
Tax Registration and Cancellation thereof
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (5)
Tax Registration
1. Any Person shall be prohibited from practicing any activity mentioned in Clause (2)
of article (2) of this Decree -Law before being registered for the tax purposes, in
accordance with the provisions of this Decree -Law.
2. Without prejudice to the provisions of Clause (1) of this Article, the person liable for
the due tax, pursuant to article (4) of this Decree -Law, shall submit to the Authority
an application for tax registration, pursuant to the provisions of the Tax Procedures
Law, within thirty (30) days as o f the end of any month during which such Person
practices or intends to practice the activities set forth in Clause (2) of article (2) of this Decree -Law, or as of the date of entry into force of this Decree -Law, whichever
comes later.
3. The Executive Reg ulations of this Decree -Law shall determine the effective date of
the tax registration referred to in this Article.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (6)
Exemption from the Registration
1. Notwithstanding the provisions of Clause (1) of article (5) of this Decree -Law, the
Authorit y may exempt any person from the tax registration when the tax becomes
due, pursuant to Paragraphs (b) and (c) of Clause (2) of article (2) of this Decree -Law,
if the Authority finds that such person will not import excise goods on a regular basis, in acco rdance with what is determined by the Executive Regulations of this
Decree- Law.
Federal Decree by Law No. (7) of 2017 on Excise Tax 7
2. Whoever is exempted from the tax registration under Clause (1) of this Article shall
notify the Authority of any changes, which may make him subject to the tax in
accordance with the provisions of this Decree -Law, within the time limits and under
the procedures determined by the Executive Regulations of this Decree -Law.
3. A person that carries out im portation for purposes other than the practice of business
shall be exempt from the tax registration, without prejudice to the obligation to pay the tax due for such importation.
4. The person’s exemption from the registration, pursuant to the provisions o f this
Article, shall not prejudice its obligation to pay any due tax or administrative fine
under the provisions of this Decree -Law or any other law.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (7)
Cancellation of Tax Registration
The registrant shall submit to the Authority an application for cancellation of tax registration
if he is no longer liable for the tax in accordance with the provisions of article (4) of this
Decree- Law within the time limits defined under the Executive Regulations of this
Decree- Law.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (8)
Registration as Warehouse Keepers
1. Each person who operates or intends to operate a designated area shall apply for
registration as a warehouse keeper in accordance with the provisions of the Executive
Regulations of this Decree -Law.
2. The Executive Regulations of this Decree -Law shall determine the effective date of
registration referred to in Clause (1) of this Article.
3. Any person shall be prohibited from acting as a warehouse keeper before being
registered in accordance with the provisions of this Article.
Federal Decree by Law No. (7) of 2017 on Excise Tax 8
|
tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (9)
Procedures, Controls and Conditions of Tax Registration and Cancellation
thereof
The Executive Regulations of this Decree -Law shall determine the procedures, controls and
conditions of the tax registration, canc ellation thereof and rejection of applications for tax
registration and its cancellation.
Chapter Four
Rules of Tax Payment and Exemption therefrom
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (10)
Date of Tax Calculation
The tax shall be calculated according to the following dates:
1. The date of importing the excise goods;
2. The date on which the excise goods are acquired by the stockpiler, but if such acquisition
occurs prior to the date of entry into force of this Decree -Law, the date of tax calculation
shall be the date of entry into force of this Decree -Law.
3. As an exception to the two cases set forth in Clauses (1) and (2) of this Article, the tax
shall be calculated on the date when the excise goods are offered for consumption, in accordance with the provisions of the Execu tive Regulations of this Decree -Law.
|
tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (11)
Tax -Inclusive Prices
The declared prices of excise goods shall, upon sale, include the tax. The Executive Regulations of this Decree -Law shall determine the cases where prices do not include the
tax.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (12)
Exemption from the Tax
1. Excise goods that are exported shall be exempted from the tax.
Federal Decree by Law No. (7) of 2017 on Excise Tax 9
2. The Executive Regulations of this Decree -Law shall establish the conditions and controls
for exempting from the tax referred to in Clause (1) of th is Article.
Chapter Five
Designated Areas
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (13)
Designated Area
1. The designated area that meets the conditions established by the Executive Regulations
of this Decree -Law shall be treated, for the tax purposes, as being outside the State.
2. Notwithstanding the provisions of Clause (1) of this Article, the Executive Regulations of
this Decree -Law shall determine the conditions under which the business practiced
within the designated area shall be treated as being practiced inside the State.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (14)
Transfer of Excise Goods in Designated Areas
1. The excise goods may be transferred from one designated area to another without any
tax due thereon.
2. The Executive Regulations of this Decree -Law shall determine the procedures and
conditions of the transfer of excise goods from and to a designated area and the method
of maintaining, storing, and processing such goods.
Chapter Six
Calculation of the Due Tax
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (15)
Calculation of the Tax
The payable tax levied on the taxable person for any tax period shall be calculated as the tax
due from the taxable person for such tax period less the total deductible tax as calculated in
accordance with the provisions of article (16) of this Decree -Law.
Federal Decree by Law No. (7) of 2017 on Excise Tax 10
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (16)
Deductible Tax
1. The deductible tax shall consist of the following:
a. The tax paid on the excise goods that have been exported;
b. The tax paid on the excise goods that have become a component of another excise
goods on which the tax has become, or becomes, due;
c. Amounts paid to the Authority by mistake.
2. The Executive Regulations of this Decree -Law shall establish the conditions and controls
of deducting the tax in the cases mentioned in Clause (1) of this Article.
Chapter Seven
Tax Period, Tax Return and Tax Payment
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (17)
Tax Period
The Executive Regulations of this Decree -Law shall determine the tax period and the
exceptional cases in which the Authority may amend the tax period.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (18)
Tax Return
The taxable person shall submit to the Authority the tax return at the end of eac h tax period,
within the time limits and in accordance with the procedures determined by the Executive
Regulations of this Decree -Law.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (19)
Payment of the Tax
1. The taxable person shall pay the payable tax on the date of submitting the tax return ,
in accordance with the provisions of article (18) of this Decree -Law and as per the
procedures to be determined by the Authority .
2. Any person exempted from the registration under Clause (1) or Clause (3) of Article
Federal Decree by Law No. (7) of 2017 on Excise Tax 11
(6) of this Decree -Law shall pay the due tax at the time of importing excise goods .
3. Any person that receives any amount as a tax or any amount invoiced shall pay it to
the Authority. Such amount shall be subject to the same treatment established for
the due tax under the provisions of this Decree -Law.
Chapter Eight
Carrying forward the Excess Refundable Tax
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (20)
Excess Refundable Tax
1. The taxable person shall carry forward any excess refundable tax to the subsequent tax
periods and offset such excess against the payable tax or any administrative fine
imposed pursuant to the provisions of this Decree -Law or the Tax Procedures Law in the
subsequent tax periods until such excess is fully utilized, in the following cases:
a. If the deductible tax of the taxable person, pursuant to the provisions of article (16) of this Decree -Law, exceeds the due tax for the same tax period;
b. If the tax paid by the taxable person to the Authority exceeds the payable tax in accordance with the provisions of this Decree -Law.
2. If there is any excess for any tax period after being carried forward for a period of
time, the taxable person may sub mit to the Authority an application for claiming a refund of
such excess in accordance with the periods and procedures determined by the Executive
Regulations of this Decree -Law.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (21)
Tax Refund in Special Cases
The Authority may, based on an app lication to be submitted thereto, may refund the tax to
the following:
1. Foreign governments, international organizations and diplomatic bodies and missions,
for the tax paid thereby while performing their official activities, in accordance with the
conditions, controls and procedures determined by the Executive Regulations of this
Federal Decree by Law No. (7) of 2017 on Excise Tax 12
Decree- Law, subject to reciprocity.
2. The person who is registered in an applying state if he pays the due tax in the State and
then exports the excise goods to an applying state, in accordance with the conditions,
controls and procedures determined by the Executive Regulations of this Decre e-Law.
3. Any persons or categories to be determined under a Cabinet resolution, upon the
proposal of the Minister.
Chapter Nine
Violations and Penalties
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (22)
Administrative Fines Assessment
Subject to the provisions of Tax Procedures Law, the Authority shall issue an Administrative
Fine Assessment to the taxable person and notify him thereof within five (5) working days as
of the date of issuance, in case of committing any of the following violations:
1. Failure by the taxable person to display the tax -inclusive prices in accordance with the
provisions of article (11) of this Decree -Law;
2. Failure to adhere to the conditions and procedu res to be followed for transferring the
excise goods from a designated area to another and the mechanism of maintaining,
storing and processing the same;
3. Failure by the taxable person to provide the Authority with the price lists of excise
goods produ ced, imported or sold thereby, in accordance with the provisions of the
Executive Regulations of this Decree -Law.
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (23)
Tax Evasion
Without prejudice to the cases of tax evasion set forth in the Tax Procedures Law, a person
shall be deemed to have committed a crime of tax evasion and shall be punished pursuant
to the Tax Procedures Law if he commits any of the following :
1. Bringing or attempting to bring excise goods into or out of the State without paying the
Federal Decree by Law No. (7) of 2017 on Excise Tax 13
due tax in whole or in part;
2. Producing, transferring, acquiring, storing, transporting or receiving excise goods for
which the due tax has not been paid with the intention of evading payment of the due
tax;
3. Placing false labels on exc ise goods, in violation of the provisions of Clause (2) of Article
(24) of this Decree -Law, with the intention of evading payment of the due tax or
receiving an unjustified refund;
4. Submitting any false, counterfeit or fabricated documents, returns or records, with the
intention of evading payment of the due tax or receiving an unjustified refund.
Chapter Ten
General Provisions
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (24)
Record Keeping and Evidentiary Requirements
1. Without prejudice to the provisions r elated to record keeping contained in any other
law, every taxable person shall keep the following records:
a. Records of all excise goods produced, imported or stockpiled;
b. Records of excise goods exported and evidence of such exportation;
c. Records of stock levels, including details of lost or destroyed items;
d. A tax record that shall contain the following information:
i. The due tax on the imported excise goods;
ii. The due tax on the produced excise goods;
iii. The due tax on the stockpiled excise goods;
iv. The deductible tax in accordance with the provisions of article (16) of this
Decree- Law.
2. The Cabinet shall, upon the proposal of the Minister, identify the excise goods on which
labels indicating that the tax has been paid shall be placed and the relevant conditions
and procedures.
3. The Executive Regulations of this Decree -Law shall determine the periods,
conditions and controls necessary for keeping the records set out in Clause (1) of this Article.
Federal Decree by Law No. (7) of 2017 on Excise Tax 14
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (25)
Tax Registration Number
The taxable person or any person authorized in writing thereby shall refer to the Tax
Registration Number in all correspondences and dealings with the Authority, tax return, and
any other document related to the tax.
Article (25) BIS
Statute of Limitations
1. Notwithstanding the cases set forth in Clauses (2), (3), (6) and (7) of this Article, the Authority may not carry out a tax audit or issue a tax assessment for the taxable
person following the lapse of (5) five years from the end of the relevant tax period.
2. The Authority may carry out a tax audit or issue a tax assessment for the taxable
person following the lapse of (5) five years from the end of the relevant tax period if
he is notified that the procedures of such tax audit have been commenced before the
lapse of the five -year period; provided that the tax audit or the tax assessment, as the
case may be, is carried out within (4) four years from the date of notification of the
tax audit.
3. The Authority may carry out a tax aud it or issue a tax assessment following the lapse
of (5) five years from the end of the relevant tax period if such tax audit or tax
assessment is related to a voluntary disclosure provided in the fifth year of the end of
the tax period; provided that the t ax audit or the tax assessment, as the case may be,
is carried out within one year from the date of providing the voluntary disclosure.
4. The Cabinet may, at the Minister’s proposal, issue a resolution adjusting the time
limit specified for completing the tax audit or issuing the tax assessment, pursuant to
Clauses (2) or (3) of this Article.
5. No voluntary disclosure shall be provided following the lapse of (5) five years from the expiry of the relevant tax period.
6. In case of tax evasion, the Authorit y may carry out a tax audit or issue a tax
assessment within (15) fifteen years from the end of the tax period within which the
tax evasion occurred.
Federal Decree by Law No. (7) of 2017 on Excise Tax 15
7. In case of failure to perform the tax registration, the Authority may carry out a tax
audit or issue a tax assessment within (15) fifteen years from the date on which the
taxable person would have been required to perform the tax registration.
8. The statute of limitations set out in this Article shall be interrupted for any of the
reasons set forth in Fede ral Law No. (5) of 1985 Promulgating the Civil Transactions
Law, or any other federal law superseding the same.
Chapter Eleven
Final Provisions
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (26)
The Executive Regulations
The Cabinet shall, upon the proposal of the Minister, issue the Executive Regulations of this Decree- Law.
|
tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (27)
Revenue Sharing
The tax revenues and administrative fines to be collected in accordance with the provisions
of this Decree- Law shall be subject to sharing between the Federal Government and the
Emirates' Governments, pursuant to the provisions of Federal Decree- Law No. (13) of 2016
on the Establishment of the Federal Tax Authority.
|
tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (28)
Matters not stipulated herein shall be subject to the provisions of the Tax Procedures Law .
|
tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (29)
Repeal of Conflicting Provisions
Any text or provision inconsistent or conflicting with the provisions of this Decree -Law is
hereby repealed.
Federal Decree by Law No. (7) of 2017 on Excise Tax 16
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tax | Federal Decree by Law No. (7) of 2017 Concerning Excise Tax | Article (30)
Publishing and Entry into Force
This Decree -Law shall be published in the Official Gazette and shall enter into force as of 1st
October 2017.
Khalifa bin Zayed Al Nahyan
President of the United Arab Emirates
Issued by us in the Presidential Palace in Abu Dhabi on:
Corresponding to 17 August 2017 AD.
On: 01 Dhul Qi'dah 1438 AH.
|
tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (1)
Definitions
The definitions set forth in Federal Decree -Law No. (28) of 2022, referred to hereinabove,
shall be applicable hereto ; while the following words and expressions shall bear the
meanings assigned t hereto respectively, unless the context requires otherwise :
Decree -Law : Feder al Decree -Law No. (28) of 2022, on Tax Procedures.
Headquarters : The business place of the Taxable P erson, or any othe r place
in which they practice their business , store goods or keep
records.
Assets : Tangible and intangible assets, including machinery,
equipment, goods … etc., which the FTA deems to be owned,
leased out or used for purposes related to the engagement in
business activities by any Person.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (2)
Recordkeeping
1. Accounting recor ds and commercial books shall include the following:
a. Busi ness records and books in which payments, receipts, purchases, sales,
revenues, expenses and any other items required by the Tax Law or any other
applicable law are recorded , including without limitation the following:
1. Balance sheet and profit and loss account s;
2. Payrolls;
3. Fixed assets records; and
4. Inventory records and accounts (including quantities and values) kept at
the end of any relevant Tax Period , and inventory counting records of
inventory lists. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 3
b. All documents supporting entries set out in accounti ng records and
commercial books, including without limitation:
1. Business c orrespondence, invoices, licenses and contracts; and
2. Documents containing details of any choice, assessment, determination or
calculation made by the Taxpayer pertaining to T ax affairs, including basis
or method of such assessment, determination or calculation made.
2. In addition to the accounting records and commercial books referred to in Clause
(1) above, the FTA may request any other information to verify the tax obligation s
of the Pers on through a series of auditable documents, including the liability of
such Person for registrat ion for the purposes of the Tax.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (3)
Recordkeeping Period
1. All accounting records, commercial books and information shall be kept in a way
that enable FTA or any employee authorized by it to verify the Tax obligations
imposed on the relevant P erson for the subsequent periods, unless otherwise
required by the Tax Law:
a. For (5) years subsequent to the relevant Tax Period for the Taxable Person;
b. For (5) ye ars as of the expiry date of the calendar year during which the
document i n question has been created for other non -taxable persons; and
c. For (7) years as of the expiry date of the calendar year during which the
document in question has been created pertaining to land registers.
2. In addition to the periods referred to in Clause (1) above, the Person shall keep the
records and books for the following extra perio ds in the following cases:
a. For extra (4) four years or until a dispute is resolved, whichever is later, in case
of a dispute be tween the FTA and the Person on the Person’s tax obligations; Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 4
b. For extra (4) four years if the Person is subject t o a tax audit that has not been
completed;
c. For extra (4) four years if the Person is notified that the FTA intends to carry
out a tax audit before the expiry of the period set out in Clause (1) above; or
d. For extra one year, commencing from the da te of submitting the Voluntary
Declaration, as for the Taxable Person that submits a Voluntary Declaration in
the fifth year from the expiry of the relevant Tax Period.
3. Subject to Clauses (1) and (2) above, a legal representative shall keep records and
books of the Person he represen ts for one year, a s of the d ate on which such legal
representation expires.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (4)
Method of Keeping Accounting Records and Commercial Books
1. Accounting records and commercial books shall be kept by any of the following
means:
a. Creating a register and keeping the original supporting documen ts of entries
mentioned therein; and
b. Creating a register and keeping the information mentioned in the original
documents, subject to the following:
1. The information mentioned in the reg ister must match t he data set out in
the original document, and must be available within the periods referre d
to in article (3) above;
2. The information must be saved or stored in a photocopy or electronic
format, where a copy thereof can be extracted, within the period set by the
FTA pursuant to th e provisions of article (48) of the Decree -Law, so that it
would be easily readable if the same is requested by the FTA; and Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 5
3. The information must be saved or sto red in a manner that allows FTA to
verify the Person’s tax obligations.
2. The FTA may set rules for keeping information set out in the accounting records
and commercial books, and may set proper requirements to ensure the availability
of such information as if the original documents were kept.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (5)
Language
1. The FTA may accept the data, information, records and any oth er documents
related to any Tax to be submitted to the FTA in English , and may also , at is
discretion, instruct the Person to translate any or all of the above into Arabic.
2. The translation of a ny Tax Return, data, information, re cords, documents or other
books into Arabic shall be duly certified pursuant to the law governi ng translation
in the State, and shall be submitted to the FTA within the time limit set by it.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (6)
Procedures of Tax Registration and Deregistration and Data Amendment
1. A Tax Registration application shall be submitted to the FTA , as per the form and
mechanism designated by the same. The FTA may determine any supporting
documents to be submitted for such purpose.
2. The FTA shall review the Tax Registration application, as per the rules adopted by
the FTA in this regard.
3. The Tax Registration shall take place by assigning a Tax Registration Number to
the applicant or reactivating the pervious Tax Registration Number if the applicant
already has a suspended Tax Registration N umber. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 6
4. The Registered Person shall notify the FTA, as per the form and mechanism
adopted by the FTA , within (20) twenty Business Days of any change to data
retained by the FTA , including:
a. Name, address and email address.
b. Activity registered in the Trade License.
c. Legal form and partnership contract as for consortiums, and memorandum of
association or the equivalent.
d. Nature of business of the Registered Person; and
e. Address from which the Registered Person practices any business.
5. A Tax deregistration ap plication shall be submitted to the FTA , as per the form and
mechanism adopted by the same, and FTA may determine any supporting
documents to be submitted for such purpose.
6. The FTA shall review the Tax Deregistration application, as per the rules adopted
by the same for such purpose.
7. In cases the Registered Person fails to submit an application of Tax deregistration,
the FTA may terminate their Tax Registration according to the controls and
procedures set out in the Tax Law.
8. The Tax deregistration shall take place by suspending the Tax Registration
Number.
9. The FTA shall notify the Person of their Tax Registration, deregistration, or
reactivation according to the mechanism adopted by the same in this regard.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (7)
Obligations of Licensing Authorities in the State
Government authorities in charge of granting licenses to Persons to engage in business
shall, within (20) twent y Business Days from the date of issuing or renewing the License, Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 7
so notify the FTA, as per the mechanism determined by the FTA . The notification shall
include the following:
1. Name of licensee.
2. Type, number and date for issuing the trade license.
3. Registered address of licensee.
4. Description of business activity;
5. Data of owners, partners, and directors; and
6. Any other information required by the FTA .
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (8)
Legal Representative
1. A Person appointed as a Legal Representative of a Taxable Person shall so notify
the FTA, as per the mechanism determined by it, and shall attach with the
notification an appropriate proof of his appointment. The notification shall
include the following:
a. Name and address of the Legal Representative.
b. Name, address and Registration Number (if any) of the Taxable Person
represented by the Legal Representative.
c. Term of appointment in case of fixed term; and
d. Responsibilities of the Lega l Representative.
2. The FTA may request any extra information on the appointment of the Legal
Representative, and may obtain such information from the Legal Representative,
the relevant Taxable Person and any other Person to verify such appointment.
3. When the FTA accepts the application for appointing the Legal Representative, the
FTA shall, within (20) Business Days following the acceptance date, notify the
Legal Representative of the same .
Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 8
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (9)
Allocation of Payments and Credit Balance
1. If the Taxable Person pays an amount to the FTA without identifying Tax Type or
Tax Period, FTA may allocate the amount or part thereof for paying any amounts
payable to the FTA for being owed by the Taxable Perso n, based on the order of
maturity of such amounts to the FTA .
2. If the payments received by the FTA , pursuant to Clause (1) above, exceed the
current obligations of the Taxable Person, FTA may register such amount in excess
as a credit balance against the T axable Person’s future obligations, unless the
Taxable Person requests to refund the surplus amount pursuant to article (38) of
the Decree -Law.
3. The FTA may allocate the credit balance or part thereof for the payment of any
amounts payable thereto owed by the Taxable Person, based on the order of
maturity of such amounts to the FTA .
4. The FTA shall notify the Taxable Person of the method of allocating the amounts
and the credit balance according to Clauses (1) and (3) above.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (10)
Submission of Voluntary Declaration
1. Where the Taxable Person becomes aware that the Tax Return submitted to the
FTA or the Tax Assessment issued by the FTA is inaccurate, which led to calculating
the Payable Tax, pursuant to the Tax Law, less than required , the following shall
be applicable:
a. If the amount is more than (AED 10,000) ten thousand dirhams, they shall
submit a Voluntary Declaration, within (20) twenty Business Days following
the date they become aware of the error. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 9
b. If the amount is equal to (AED 10,000) ten thousand dirhams or less, they shall
act as follows:
1. If the Taxable Person is obliged to submit a Tax Return to the FTA , errors
shall be corrected in the Tax Return for t he previous Tax Period whose
submission has not been yet due, or in the Tax Return for the Tax Period in
which the error has been detected, whichever is earlier.
2. Submitting a Voluntary Declaration within (20) twenty Business Days
from the date of being aw are of the error in the absence of a Tax Return
through which they can correct the error, pursuant to Subclause (1) above.
2. If the Taxpayer finds that the tax refund application submitted to the FTA is
inaccurate, which led to calculating the amount that w ould have been refundable
under the Tax Law in excess to the accurate value, they shall submit a Voluntary
Declaration to the FTA within (20) twenty Business Days from the date of being
aware of the error, unless the same is arising from an inaccurate Tax Return or Tax
Assessment. In this case, the provisions of Clause (1) above shall be applicable.
3. If the Taxpayer finds an error or omission in the Tax Return submitted to the FTA ,
with no difference in the Due Tax amount, they shall correct the error or su bmit a
Voluntary Declaration, as determined by the FTA .
4. For the purpose of implementing the provisions of this Article, the Voluntary
Declaration shall be submitted according to the forms and the mechanism
identified by the FTA .
Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 10
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (11)
Means o f Notification
1. The FTA shall serve a notice to the Person or their Tax Agent or Legal
Representative, as the case may be, to the address registered with the same via any
of the following means:
a. Mail, registered mail, email or text messages on the mobile phone, smart
applications or electronic systems of the FTA ;
b. Posting on a prominent place at the Person’s Headquarters; or
c. Any other means to be agreed on between the Person and the FTA.
2. For the purpose of this Article, the registered address includes, w ithout limitation,
the address provided by the Person to the FTA , the Person’s usual address or last
place of residence or business known for the same.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (12)
Tax Agent Registration Conditions and Controls
1. A natural Person who desires to be registered in the Register of Tax Agents shall :
a. Be a person of good conduct and reputation ;
b. Have never been convicted of a felony or misdemeanor, even if he has been
rehabilitated;
c. Have the minimum level of the relevan t education and experience in taxation,
accounting or law in any of the following forms:
1. Career experience of not less than (3) three years acquired throughout the
previous five years, and holding at least a bachelor or master degree
accredited in taxatio n, accounting or law from an educational institution
recognized by the competent authority in the State; Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 11
2. Career experience of not less than (3) three years acquired throughout the
previous five years, and holding a bachelor or master degree accredited in any
other field from an educational institution recognized by the competent
authority in the State, in addition to a valid professional certificate from a
recognized institution, as determined by the FTA ; and
3. Career experience of not less than (5) five ye ars acquired throughout the
previous eight years, and holding a bachelor or master degree accredited in
any other field from an educational institution recognized by the competent
authority in the State;
d. Complete any necessary training, as determined by the FTA , and successfully pass
any qualification tests, as determined by the FTA ;
e. Master spoken and written Arabic or English;
f. Have a professional liability insurance or be covered by the same under a
professional liability insurance contract, commensurat e with the nature and
business volume of the Tax Agent;
g. Have a license or work for an entity having a license from the competent
authority; and
h. Not be a current member of the Committee.
2. A legal Person that desires to be registered in the Register of Tax Agents must:
a. Be licensed as an audit firm, tax office or law firm;
b. Have a professional liability insurance or be covered by the same under a
professional liability insurance contract, commensurate with the nature and
business volume of the Tax Agent;
c. Have one of partners or managers fulfilling all the conditions prescribed for a
natural Person, as set out in Clause (1) above, supervising the services provided
by the legal Person and not working for another legal Person or for its favour; and
d. Fulfill any additional conditions determined by the FTA . Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 12
3. An application for registration in the Register must be submitted to the FTA according
to the form and mechanism specified by the FTA .
4. FTA may, before deciding on the application for registration in the register, request
additional information from the applicant, and may request a personal interview with
the natural Person, pursuant to Clause (1) above, or with partner/manager, pursuant
to Paragraph (c) of Clause (2) above, as the case may be, or may inquire about the
references and documents mentioned in the registration application.
5. FTA shall provide for the provisions related to the procedures for registration of the
Tax Agent and cont inuation, renewal, suspension or revocation of the registration.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (13)
Procedures for Registration or Deregistration of the Tax Agent
1. The FTA shall examine the applications for registration in the Register, and shall
decide on the application or may request additional information within (15)
fifteen business days following the date of receipt.
2. If the FTA requests additional information pursuant to Clause (1) abov e, it shall
decide on the application within (15) fifteen Business Days from the date of
receiving such additional information.
3. If the FTA approves an application for registration in the Register, it shall so notify
the applicant within (5) five Business Days and request the payment of the due
fees.
4. The due fees shall be paid pursuant to Clause (3) above within 20 Business Days
from the date of Notification of the approval. If the due fees are not paid within
such time limit, the application shall be null and void.
5. The FTA shall register the Person in the Register of Tax Agents within (5) five
Business Days following the date of pay ment of the fees. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 13
6. The FTA may reject an application for registering the Person in the Register in any
of the following cases :
a. If the Person fails to fulfill any of the conditions specified in article (12) above;
or
b. If the registration will negatively affect the integrity of the tax system.
7. If the application is rejected, the FTA shall notify the applicant of the same within (5)
five Business Days from the date of the FTA ’s rejection of the application.
8. The registration in the Register shall be for (3) three years from the date of registration
for a natural Person, and for one year from the date of registration for a legal Pe rson.
The Tax Agent may submit an application to the FTA to renew their registration in the
Register in no later than twenty (20) Business Days before the expiry of their
registration and after the prescribed fees are paid within the time limit specified by
the FTA .
9. Any renewal application submitted after the expiration of the time limit specified in
Clause (8) above shall be treated as a new application and shall meet the conditions
specified in article (12) above.
10. If the Tax Agent fails to submit a regi stration renewal application before the expiry of
the time limits referred to in Clause (8) above, they shall be deregistered and
disengaged from all Persons they represent before the FTA, as of the expiry date of
their registration in the Register.
11. The Tax Agent shall notify the FTA if they cease to practice as a Tax Agent, pursuant
to Clause (2) of article (13) of the Decree -Law, as per the form and mechanism
determined by the FTA .
12. The FTA may remove the Tax Agent from the Register, upon their request;
13. The FTA shall remove the Tax Agent from the Register in any of the following cases:
a. If The FTA finds that they are unable to carry out their functions or duties, or that
they no long er fulfil the conditions set out in article (12) above; Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 14
b. If the FTA has serious reasons that the continuous registration of a Person as a Tax
Agent in the Register would negatively affect the integrity of the tax system in the
State;
c. If they commit any se rious violation of the provisions of the Decree -Law or the
Tax Law, or is involved in the Tax Evasion; or
d. If the FTA becomes aware that they are a current member of the Committee.
14. The FTA shall notify the Tax Agent and their principals of the deregistration
decision within (5) five Business Days from the date of issuance, and the Tax Agent
shall be notified of the grounds based on which such decision was issued.
15. Clause (14) above shall entail disengagement of the Tax Agent from all Person
they represent before the FTA, five (5) business days following the date of
Notification of the FTA ’s decision.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (14)
Obligations and Rights of the Tax Agent
1. When exercising their functions, the Tax Agent shall:
a. Assist the Person they represent before the FTA with regard to its Tax
obligations pursuant to the agreement concluded between them;
b. Keep any information obtained by the same in the course of performi ng their
functions as a Tax Agent confidential, without prejudice to any obligation to
disclose such information under law;
c. Continue fulfilling the requirements of their professional development
program, as determined by the FTA ;
d. Refrain from participati ng in any action or plan that could lead to violating any
law by any Person, or that could negatively affect the integrity and safety of the
tax system; and Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 15
e. Maintain information, documents, records and data related to any Person they
represent.
2. The Tax A gent may, while exercising their functions, rely on the information
obtained from the Person they represent, unless they have reasons to believe that
such information is incorrect.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (15)
Tax Auditing
1. Before making a decision to conduct a Tax Aud it, the FTA shall take into account
the following:
a. The Tax Audit must be necessary to protect the impartiality and integrity of the
tax system;
b. The responsibility of the Person or any associated Person for compliance with
the Decree -Law or the Tax Law;
c. Tax revenues expected to be collected; and
d. Compliance burdens and administrative burdens on both the FTA and the
associated Person, pertaining to conducting the Tax Audit.
2. The FTA may apply a Tax Audit to a Person that had been audited, taking into
accou nt the following:
a. Results of the previous Tax Audit; and
b. Any new information or data that would change the FTA’s situation.
3. FTA’s decision to conduct the Tax Audit shall be subject to the discretionary power
of the FTA , and no Person may object to or challenge such decision.
Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 16
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (16)
Notification of the Tax Audit
1. The FTA shall notify the Person of the Tax Audit, at least (10) Business Days before
conducting the Tax Audit. The notice served by the FTA must make a reference to
the potential consequences that could result from obstructing a tax auditor from
practicing his duties.
2. For the purpose of applying Clause (4) of article (16) of the Decree -Law, the FTA
shall notify the Person in writing of the Tax Audit commencement to:
a. A tenant occupying the Headquarters if he is present when the Tax Audit starts;
or
b. A Person who acts as a responsible officer at the Headquarters in the absence
of the Tenant who occupies the Headquarters.
3. If the FTA is convinced that the Notification of the Person of the Tax Audit by the
means referred to in this Article is useless, it may notify the Person by posting the
notice at a prominent place at the Headquarters where the Tax Audit will be
conducted.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (17)
Tax Audit Pr ocedures
1. For the purpose of conducting the Tax Audit, the FTA may inspect/audit:
a. The Headquarters and documents and Assets therein;
b. Electronically -stored data and records; and
c. Accounting systems used by the Taxable Person.
2. For the purpose of applying Clause (1) above, a tenant occupying the
Headquarters or any Person that FTA deems controlling the same, in the absence
of the Tenant occupying the Headquarters, shall provide the FTA with all facilities
necessary for exercising its powers effectively. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 17
3. An employee of the FTA may accompany the Tax Auditor to the Headquarters
should the Tax Auditor deems such action necessary to enable him to exercise his
powers effectively.
4. The FTA shall notify the Person to provide any informat ion or show any
documents related to them or to any other Person should such documents or
information, at the desecration of the FTA , are necessary.
5. If the Person is notified to provide information or submit documents under Clause
(4) above, they shall pr ovide the same within the time limit and based on the form,
means and place set out in the Notification.
6. A tax auditor who practices auditing under an authorization issued by the Public
Prosecution shall show the approval issued by the FTA and the authorization
issued by the Public Prosecution, and shall prove his identity where required.
|
tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (18)
Seizure and Retention of Documents and Assets
1. Upon exercising his functions, the Tax Auditor may:
a. Take a copy of the documents;
b. Label the original documents and Assets to refer that they are under going
inspection;
c. Reserve documents and Assets;
d. Obtain information related to the Headquarters, Assets, documents and
accounting systems that have been audited and registered.
2. The Tax Auditor may impound any Assets or documents for periods determined
by him, in order to complete the Tax Audit.
3. If a document or asset is seized, pursuant to Paragraph (c) of Clause (1) above, the
FTA shall submit a report containing items seized within (10) ten B usiness Days Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 18
from the seizure date, or within any other period determined by the FTA for any of
the following Persons:
a. Owner of the document or Asset;
b. Tenant occupying the Headquarters in which the document or Asset has been
seized; or
c. Person where the document or asset was in his possession or under his control
immediately before being seized.
4. The report referred to in Clause (3) above shall include the following:
a. Purpose of the seizure on the document or Asset;
b. Nature and description of the documen t or Asset;
c. Place where the document or Asset is stored and the storage conditions; and
d. Expected period of seizure by the FTA .
5. The FTA may transfer, keep and store any documents or Assets that have been
seized under Clauses (1) and (2) above for the period required to complete the Tax
Audit, in accordance with the following conditions:
a. The documents or assets that have been seized or retained shall be returned to
the Person to whom the report was submitted, pursuant to Clause (3) above in
the best practicable condition.
b. The FTA may dispose of Assets which are perishable by nature, in accordance
with the FTA’s internal procedures.
6. The FTA shall notify the Asset’s owner or any Person specified in Paragraph (b) or
(c) of Clause (3) above, if it is not possible to notify the owner, of its desire to
dispose of the Asset, in whole or in part, and shall give him an opportunity to
entirely o r partially retrieve it before (10) ten Business Days from disposing of the
Asset, pursuant to Paragraph (b) of Clause (5) above.
7. The FTA shall assume no liability for any damage arising from the disposition of
Assets, pursuant to Paragraph (b) of Clause (5) above. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 19
8. If the Person whose asset or document is seized submits an application to access
thereto, the FTA may:
a. Allow him to access to such document or asset under its supervision,
photocopy or scan the document or photo the original and present the
photograph or scanned copy to the relevant Person; or
b. Reject the application if it deems that it would compromise:
1. The Tax Audit;
2. A Tax Audit related to another Person;
3. Any investigation related to any of the documents or assets required to be
accessed; or
4. Any criminal proceedings related to the document or asset required to be
accessed.
9. Where the FTA needs to keep records and books for a longer period, exceeding the
period set out in Clause (3) or article (3) above, it may seize and retain the same
for a period specified by it.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (19)
Result of Tax Audit
1. A Person that is subject to the Tax Audit shall be notified of the Tax Audit result,
within (10) Business Days of its completion.
2. A Person that is subject to the Tax Audit may access to or obtain the documents,
data and information based on which the FTA has assessed the Due Tax contained
in the results of the Tax Audit, based on an application to be submitted as per the
form specifi ed by the FTA within (20) twenty Business Days from the date of
Notification of the Tax Audit results. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 20
3. Subject to Clause (4) above, the FTA may provide the Person with the documents,
data and information required pursuant to Clause (2) above, within (10) ten
Business Days from receiving the application, as follows:
a. A hard or soft copy of the required documents, data or information.
b. An original copy of the required documents, data or information if such
documents, data or information belong to the Person that is subject to the Tax
Audit that submitted the application.
4. The FTA is not bound to provide the Person with the following:
a. Documents, data or information that could reveal any internal
correspondence or decisions taken by the FTA ;
b. Any confidential documents, data or information belonging to another Person;
and
c. Any documents, data or information that may be in the possession of the
Person that is subject to the Tax Audit that has submitted the application. In
this case, the FTA may provide the Perso n that is subject to the Tax Audit with
adequate information that allows them to identify the required documents,
data and information.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (20)
Tax Assessment
1. The Tax Assessment shall include adequate information to determine the value of
the Due Tax, Refundable Tax or any other matters determined by the Tax Law. It
shall include at least the following information of the relevant Person:
a. Name and address;
b. Tax Registration Number, if any;
c. Tax Assessment reference number;
d. Type of Tax under assessm ent; Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 21
e. Tax summary, including details of the declared Tax and adjustments made;
f. Grounds on which the Tax Assessment is based;
g. Net amount of the Tax payable to the FTA or which will be refunded by it; and
h. Due date for paying the Due Tax and the payment me thod.
2. When a tax amount due to the FTA is assessed and the Person is so notified, it shall
serve as a debt payable to the FTA , and may be collected on such grounds.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (21)
Assessment of Administrative Fines
1. The assessment of administrative fines shall include at least the following
information:
a. Name and address of the Person;
b. Tax Registration Number of the Taxable Person, if any;
c. Violation requiring the assessment of administrative fines; and
d. Summary of the administrative fines, including the following:
(1) Amount of the imposed administrative fine;
(2) Tax amount of the imposed administrative fine, if any;
e. Total administrative fines payable to the FTA .
2. When the amount of administrative fines is assessed and the person is notified
thereof, it shall serve as a debt payable to the FTA from the date of Notification,
and can be collected on that basis.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (22)
Procedures and Measures
1. The FTA may sell seized and abandoned goods that are damageable, reducibl e or
leakable, or that are in a condition that would compromise the safety of other Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 22
goods or the facilities existing therein, pursuant to the procedures contained in this
Article.
2. The FTA shall:
a. Draw up a report to record seized goods and reasons for sei zure;
b. Provide a copy of the report to the owner, and if it is not possible to notify the
owner, any Person specified in Paragraph (b) or (c) of Clause (3) of article (18)
above shall be notified;
c. Notify the goods owner, and if it is not possible to notify the owner, notify any
Person specified in Paragraphs (b) or (c) of Clause (3) of article (18) above of
the decision of selling goods, reasons therefor and the date scheduled for the
sale.
3. The sale under this Article shall be made in a public auction acco rding to the
procedures set by the FTA .
4. The FTA may destroy or dispose of the seized goods after notifying the owner in
the following cases:
a. Where it is not possible to sell the goods pursuant to this Article; or
b. Where the seized goods are perishable by nature to the extent that they may
lose their value, as per the internal procedures of the FTA .
5. The owner of seized goods may request to reco ver the same after paying the full
tax, administrative fines payable and any other expenses related to such goods;
provided that such goods are saleable and tradeable in the State, as per the
following conditions:
a. He shall notify the FTA within (5) five B usiness Days from the date of being
notified of the seizure;
b. He shall submit to the FTA evidence proving that:
1. He owns the seized goods; and
2. He has paid the full Tax, administrative fines and expenses related to such
seized goods. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 23
6. The FTA shall determ ine the procedures and controls for storing and transporting
the seized goods are damageable, reducible or leakable, or in condition that would
compromise the safety of other goods and facilities existing therein.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (23)
Conciliation on Tax Evasio n Offences
1. Before initiating a criminal action, the FTA may accept conciliation in respect of the
Tax Evasion offences and deliberate abstention from paying administrative fines
in return for paying the full Tax payable and administrative fines.
2. Before in itiating a criminal action, the FTA may accept conciliation in respect of the
offences set forth in Clause (4) of article (25) of the Decree -Law after paying an
amount of (AED 50,000) fifty thousand dirhams. If any of such offences causes a
Tax Evasion or leads to the facilitation or concealment thereof, the conciliation
shall be ma de by paying the consideration shown in Clause (1) above.
3. After the criminal action is initiated and during the phase of investigation and trial,
before a judgement of conviction is rendered and after consulting the FTA, the
Public Prosecution may accept conciliation on the tax offences in return for the
payment of the following amounts:
a. The full Due Tax and administrative fines, plus an amount equivalent to (50%)
of the tax amount evaded , pertaining to the offences set forth in Clause (2) of
article (25) of the Decree -Law;
b. The full Due Tax and administrative fines, plus an amount equivalent to (50%)
of the tax amount evaded , if any, pertaining to the offence of deliberate
abstention from paying the administrative fines set forth in Clause (3) of Article
(25) of the Decree -Law; or
c. An amount of (AED 100,000) one hundred thousand dirhams for offences set
forth in Clause (4) of article (25) of the Decree -Law. If any of such offences Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 24
causes a Tax Evasion or leads to the facilitation or concealment thereof, the
conciliation shall be made by paying the consideration shown in Clause (a)
above.
4. After a judgement of conviction is rendered and after consulting the FTA, the
Public Prosecution may reconcile Tax offences in return for the payment of the
following amoun ts:
a. The full Due Tax and administrative fines, plus an amount equivalent to (75%)
seventy five percent of the tax amount evaded , pertaining to the offences set
forth in Clause (2) of article (25) of the Decree -Law;
b. The full Due Tax and administrative fines, plus an amount equivalent to (75%)
seventy five percent of the tax amount evaded , if any, pertaining to the offence of
deliberate abstention from paying the administrative fines set forth in Clause (3)
of article (25) of the Decree -Law; or
c. An amount of (AED 200,000) two hundred thousand dirhams for offences set
forth in Clause (4) of article (25) of the Decree -Law. If any of such offences causes
a Tax Evasion or leads to the facilitation or concealment thereof, th e conciliation
shall be made by paying the consideration shown in Clause (a) above.
5. If more than one action of the actions set out in Clause (4) of article (25) of the
Decree -Law is committed for one purpose, and such actions are indivisibly related
to ea ch other, the conciliation shall be made for all such actions collectively, in
return for payment of the amount set out in Paragraph (c) of Clause (3), or
Paragraph (c) of Clause (4) above, as the case may be.
Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 25
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (24)
Conciliation Conditions, Controls and Procedures
1. The conciliation application shall be submitted by the Person to the FTA on the
form prepared for such purpose, before a criminal action is initiated. The form shall
include an undertaking to pay the full amounts owed by them as a consideration
for the conciliation .
2. FTA shall decide either to accept or reject the conciliation application. If FTA
decides to accept the application, a report on the same shall be drawn up to record
the conciliation and the consideration th ereof and be signed by both parties, and
a copy thereof shall be delivered to the Person after paying the conciliation
consideration.
3. The conciliation application shall be submitted by the accused or convict, as the
case may be, at any stage of the crimin al action to the competent federal Public
Prosecution.
4. Before initiating the procedures of conciliation in Tax offences, the Public
Prosecution shall seek the opinion of the FTA . If no reply is received from the FTA
within (20) twenty business days, such action serves as implicit consent of the
conciliation .
5. The Public Prosecution shall draw up a report of the conciliation after the payment
of the full Tax, payable administrative fines and the additional consideration for
the conciliation , and shall be si gned by both the competent Public Prosecution
member and the accused or convict, and shall be approved by the Federal
Attorney -General. The report must include the following:
a. Data of the accused or convict;
b. A description of charges attributed to the accu sed or convict, date and place of
their occurrence and articles of law applicable thereto;
c. Amount of Tax and administrative fines payable; and Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 26
d. Stating the percentage and amount of the additional consideration for
conciliation .
The report shall be accomp anied by a proof of payment of the aforementioned
amounts. Where the administrative fines are paid in installments or are exempted,
pursuant to article (50) of the Decree -Law, or the payment of the additional
consideration of conciliation is postponed or p aid in installments, pursuant to
Clause (9) above, a plan of payment of deferred or installed amounts, as the case
may be, shall be attached to the report. The FTA and the Competent Court shall be
notified of the approved conciliation report, as the case m ay be.
6. The Public Prosecution shall order to stay the execution of the adjudicated penalty
if the conciliation is made during the execution thereof, even if the judgement
becomes final.
7. The completion of conciliation in accordance with the above shall terminate the
criminal action for the incident, subject of conciliation , and shall eliminate the
impacts arising therefrom.
8. Multiple accused or convicts in the criminal case shall not prevent the Public
Prosecution from proceeding with the conciliation proceedings with one or some
of them, and the effect of conciliation shall extend to all accused persons or
convicts in the sam e incident.
9. The Public Prosecution may, at the request of the accused person or convict, order
to postpone the payment of the conciliation consideration and to be paid in
installments according to the following conditions:
a. The postponement or installment must not include the tax payable or
administrative fines;
b. The period of postponement or installment must not exceed two years; and
c. The accused person or convict must provide adequate safeguards.
The Public Prosecution may revoke the order of postponemen t or installment if it
finds a reason for doing so. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 27
10. The conciliation shall be null and void and all effects thereof shall terminate where
the accused person or convict fails to comply with Clause (9) above or violates the
payment plan referred to in Claus e (5) above.
11. In all cases, the payment of the conciliation consideration, i.e. the Payable Tax and
administrative fines, shall be made in favour of the FTA .
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (25)
Extension of Time Limits
1. The FTA may extend the time limit for deciding on an app lication for reviewing the
Tax Assessment and an application for reconsideration that fulfils the conditions
of formalities for (20) twenty Business Days if the extension is necessary to decide
on the application.
2. The Committee may extend a time limit for deciding on a Tax objection, which
fulfils the formal requirements, for (60) sixty Business Days if the extension is
necessary to decide on the objection.
3. The Committee may, at the request of stakeholders, extend the time limit for
submitting an applica tion for reviewing the Tax Assessment or an application for
reconsideration in cases assessed by the FTA .
4. The Committee may, at the request of stakeholders, extend the time limit for
accepting the submission of Tax objection if it found a reason beyond re asonable
control, an accident, unforeseen circumstances or force majeure precluded the
submission of the Tax objection within the prescribed time limits.
5. For the purposes of Clauses (3) and (4) above, the application shall be submitted
together with the e xtension justifications and reasons for the subject matter of
review, reconsideration or objection.
Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 28
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (26)
Tax Refund Procedures
1. A Taxpayer that is entitled to refund the Tax under the Tax Law or the Decree -Law
may submit a refund application, as per the form and mechanism determined by
the FTA .
2. The FTA shall decide on the refund application under Clause (1) above, and shall
notify the Taxpayer of its decision within (20) twenty Business Days from the date
of submitting the refund application, or within any other time limit that may be
necessary to de cide on the refund application; provided that the Taxpayer is so
notified.
3. If the FTA approves the refund application, it shall, within (5) five Business Days
from the date of notification, pursuant to Clause (2) above, take actions to
reimburse the amoun t to the Taxpayer, as per the mechanism determined by the
FTA .
4. FTA may postpone the Tax refund until any due Tax Returns are submitted to the
FTA and have not been submitted when the Tax refund application is received. In
this case, the excess amount shal l be refundable after submitting such Tax Returns,
taking into account the conditions set forth in the Decree -Law and the Tax Law.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (27)
Payment of Tax and Administrative Fines in Bankruptcy Cases
1. If a business or part thereof enters into bankrup tcy proceedings and a bankruptcy
trustee is appointed thereto, the latter shall be treated as a representative of the
Person with respect to its business or part thereof up to the expiration of the term
of their appointment. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 29
2. The bankruptcy trustee shall n otify FTA of their appointment, within (20) twenty
Business Days from the date of their appointment pursuant to the provisions of
article (8) above.
3. The FTA shall inform the appointed bankruptcy trustee of the Due Tax amount or
of its desire to conduct a Tax Audit over specific Tax Period(s), within (20) twenty
Business Days from the date of notifying the FTA of the appointment of the
bankruptcy trustee , pursuant to Clause (2) above.
4. The bankruptcy trustee shall pay the Payable Tax to the FTA according to the
mechanism of paying the Payable Tax, pursuant to the Decree -Law and the Tax
Law.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (28)
Confidentiality and Disclosure of Information
1. Employees of the FTA and persons assigned by the FTA to implement the
provisions of the Decree -Law or the Tax Law shall, during and after their
employment and assignment, not disclose the information that was in their
possession or that they had accessed thereto during their employment or for
carrying out t heir assigned functions, except in the following cases:
a. The disclosure must be based on a decision by the judicial authority for the
purposes of a civil or criminal action before the competent court on a matter
falling within the FTA’s scope of work;
b. The disclosure must be made be for a competent government authority after
being determined by a decision of the Board of Directors, i.e. concluding a
memorandum providing for the disclosure, determining the permissible use of
the disclosed information and the procedures made for subsequent monitor,
security and permission and accuracy of information, including access to this
information by persons. Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 30
c. The disclosure must be in pursuance of international convention or treaties.
d. The disclosure must be related to the Person, their legal representative, or their
Tax Agent, at the request of one of them, on the Person’s file held by the FTA ;
and
e. The disclosure must be to one of the FTA ’s employees in charge and shall be
made at a place in accordance with the conditi ons of confidentiality, where by
the FTA expects that such Person will perform his duties and functions.
2. For the purposes of implementing the provisions of Clause (1) above, the “FTA
employees” shall mean:
a. The Chairman and Board Members;
b. The Director -General; and
c. Any other employee of the FTA .
3. For the purposes of implementing the provisions of this Article, the Board of
Directors shall specify the following:
a. The FTA employees and Persons assigned by it w hose jobs allow them to
disclose information and nature or category of such information permitted to
be disclosed; and
b. Date on which the disclosure is permitted.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (29)
Requesting Information and Documents
The FTA may request accounting records, commercial books and any other data and
information from any Person, in order to carry out its functions and powers under the
Decree -Law, the Tax Law and any executive resolution thereof.
Cabinet Resolution No. (74) of 2023, on the Executive Regulations of Federal Decree -Law No. (28) of 2022
on Tax Procedures 31
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (30)
Repeals
1. Cabinet Resolution No. (36) of 2017, on the Executive Regulations of Federal Law
No. (7) of 2017, on Tax Procedures, as amended, shall hereby be repealed.
2. Any provision contrary to or in conflict with the present Resolution shall hereby
be repealed.
3. The resolutions issued by the FTA and the procedures applied by it, pursuant to
Cabinet Resolution No. (36) of 2017, on the Executive Regulations of Federal Law
No. (7) of 2017, on Tax Procedures, as amended, shall remain in force, in so far as
they do not con tradict the provisions of the present Resolution, until the substitute
resolutions and procedures are issued, pursuant to the provisions of this
Resolution.
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tax | Cabinet Resolution No. (74) of 2023 on the Executive Regulations of Federal Decree-Law No. (28) of 2022 on Tax Procedures | Article (31)
Publication and Entry into Force
1. This Resolution shall be published in the Officia l Gazette, and shall enter into force
as of 1st August 2023.
2. Notwithstanding Clause (1) above, Clause (2) of article (12) above shall enter into
force as of 1st December 2023.
Mohammed bin Rashid Al Maktoum
Prime Minister
Issued by Us:
Dated: 22nd Dhu al -Hijja 1444 AH,
Corresponding to: 10th July 2023 AD |
tax | Cabinet Resolution No. (41) of 2018 Concerning Applying Refunding System of Value Added Tax to Tourists | Article (1)
Definitions
In application of Provisions of this Resolution, the following words and phrases shall have the
meanings assigned to them, unless the context indicates otherwise:
State : The United Arab Emirates.
FTA : The Federal Tax Authority.
Chairman : Chairman of the FTA Board of Directors.
VAT : The Value Added Tax.
GCC : All states that enjoy the membership of GCC in accordance with the
statutes of GCC countries .
Applying Countries : GCC states that apply VAT Law under an issued legislation . Cabinet Resolution of 20 18 Implementing the Refund System of the Value Added Tax to Tourists 2
Tourist Coming
from Abroad System : Any natural person who is not a resident in the State or of any other
applying State and is not a member of a flight or naval crew; and
leaves the State to outside the applying one.
System : The operations under which VAT Refund mechanism shall be
provided to the tourist who is coming from abroad .
Operator : Service Provider(s) who are contracted to set up and operate the
system in the state .
Items : Physical personal possessions .
Retail Dealers : VAT -registered Business es in the State which supply items .
Purchase Without
VAT : Any purchase of any item by the tourist who is coming from abroad
for the purpose of refunding the paid VAT using the system .
Export : Items departure from the state .
Tax Period : The specified period over which VAT shall be calculated and paid.
The tax that was levied under Federal Decree -Law No. (8) of 2017
concerning Value Added Tax and its payment date to FTA .
Output Tax : The supply tax that is levied by a retail dealer.
|
tax | Cabinet Resolution No. (41) of 2018 Concerning Applying Refunding System of Value Added Tax to Tourists | Article (2)
System Commencement Date
The President shall issue a decision specifying the Commencement Date of the system providing
that it shall be no later than 1 January 2019.
|
tax | Cabinet Resolution No. (41) of 2018 Concerning Applying Refunding System of Value Added Tax to Tourists | Article (3)
System Mechanism
1. The person shall meet all the following conditions to be qualified to refund VAT using the
system:
a. To meet the conditions that are stated in Clause No. 2 of Article No. 68 of the referred
Cabinet Resolution No. (52) of 2017.
b. To purchase the items from a retail dealer who participated i n the system. Cabinet Resolution of 20 18 Implementing the Refund System of the Value Added Tax to Tourists 3
c. Items shall be purchased from the retail dealer in accordance with the requirements that
will be specified in a presidential decision.
d. Items shall be exported in accordance with the requirements that will be specified in a
presidential decision.
e. Such Items shall not be excluded by FTA from the system.
2. Each retail dealer who meets the participation requirements specified by the FTA shall have the
right to participate in the system.
3. If the tourist who is coming from abroad exp resses his wish to the retailer, who participates in
the system, to purchase without VAT, the retailer shall give the tourist the necessary documents
to claim VAT refund using the system as determined by FTA. These documents include tax
invoice that meets all the requirements stipulated in article (59) of the referred Cabinet
Resolution No. (52) of 2017.
4. The tourist coming from abroad shall apply for a direct VAT refund from the operator. The
operator in turn is required to refund the money upon receipt of the reasonable and sufficient
evidence as specified by FTA, on which the tax will be refunded to the tourist coming from
abroa d.
5. The Operator may charge fees to the tourist coming from abroad against refund management
using the System. He may also deduct t hese fees from the amount to be refunded to the tourist
coming from abroad in accordance with the President Decision; providing that these charged
fees shall not exceed what is approved by Prime Minister.
6. The operator shall cooperate with the customs depar tments of the State in cases in which the
tourist coming from abroad have to show the goods for which he wishes to recover VAT, which
may require verification and inspection in accordance with the conditions determined by FTA .
7. Customs departments shall coo perate with FTA and the Operator concerning verification and
inspection in accordance with the conditions determined by FTA.
8. If the operator refunds the amount of VAT related to a purchase without VAT to a tourist
coming from abroad in accordance with this Article properly, the operator may demand the
retailer, who sold the relevant items to the tourist coming from abroad, to directly pay the
amount of the refunded tax. Cabinet Resolution of 20 18 Implementing the Refund System of the Value Added Tax to Tourists 4
9. If the retail dealer pays the VAT amount to the Operator properly in accordance with thi s
Article, the retail dealer shall be able deem the VAT amount as a deduction from the Output
Tax that is to arise in the Tax Period in which the refund amount has been paid to the tourist
coming from abroa d.
10. The FTA may:
a. Specify the requirements including : procedural requirements; evidentiary, verification,
documentation and record keeping requirements which the tourist who is coming from
abroad, retailer, operator and any other person required to meet in order to apply the
system.
b. Enter into agreements wi th any person and specify the necessary conditions and
procedures related to system operation.
|
tax | Cabinet Resolution No. (41) of 2018 Concerning Applying Refunding System of Value Added Tax to Tourists | Article (4)
System Restrictions
The President shall issue a decision specifying the minimum amount of money that shall be applied
to refund requests in accordance with the System.
|
tax | Cabinet Resolution No. (41) of 2018 Concerning Applying Refunding System of Value Added Tax to Tourists | Article (5)
Issuance of Executive Resolutions
The President shall issue the necessary decisions to implement the provisions of this Resolution.
|
tax | Cabinet Resolution No. (41) of 2018 Concerning Applying Refunding System of Value Added Tax to Tourists | Article (6)
Repeals
Any provision contrary to or inconsistent with the provisions of this Resolution shall be repealed.
Cabinet Resolution of 20 18 Implementing the Refund System of the Value Added Tax to Tourists 5
|
tax | Cabinet Resolution No. (41) of 2018 Concerning Applying Refunding System of Value Added Tax to Tourists | Article (7)
Provisions of the Resolution Enforcement
The provisions of this Resolution shall come into force as of the date on which it is issued and shall
be published in the Official Gazette.
Mohammed bin Rashid Al Maktoum
Prime Minister
Issued by us:
On: 11 Dhul Qidah 1439 A.H.
Corresponding to: 24 of July 2018 AD |
tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (1)
Definitions
In application of Provisions of this Resolution, the following words and phrases shall
have the meanings assigned to them, unless the context indicates otherwise:
Ministry : The Ministry of Justice.
Competent Minister : The Minister of Justice.
Object : A written or electronic objection submitted to
committees subject to provisions of law and this
Resolution .
Objector : A natural or legal person submitting the objection
either this is made by himself/itself, legal
representative or tax agent .
Authority : The Federal Tax Authority established pursuant to
Federal Decree -Law No. (13) of 2016.
Committee(s) : Tax disputes resolution committee (s).
Competent
Department : Department of tax disputes resolution committees at
the Ministry .
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (2)
Formation of Committees
1. Permanent committees for tax disputes resolution shall be formed as follows:
a. Tax disputes resolution committee -Abu Dhabi.
b. Tax disputes resolution committee -Dubai. Cabinet Resolution of 20 18 Forming the Tax Disputes Resolution Committees, Its Bylaws, and
Procedures to be Followed before it 3
c. Tax disputes resolution committee -Sharjah.
2. Each committee shall be headed by a judicial auth ority member and two expert
members registered at tax roll of experts and a resolution by the Minister shall be
issued for their appointment in coordination with the Minister of Finance.
3. Each committee shall have one judicial authority member and an expert listed in
the tax roll of experts standing -by, and a resolution by the Minister shall be issued
for their appointment in coordination with the Minister of Finance.
4. Membership period in committees shall be one year and may be renewed for a
similar period (s) for not more than three (3) years.
5. If the period expires and no resolution is taken to renew the membership, the
committee shall proceed its work until a resolution of renewal or reformation is
issued.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (3)
Venue for the C ommittees' Meetings to be Convened
1. Committees formed pursuant to this Resolution shall convene its meetings at the
headquarter determined by a resolution of the Minister.
2. Territorial jurisdiction of each committee shall be determined according to the
place in which the address of the objector indicated in the tax registration file at
the Authority is located.
3. The exception of clause (2) of this article is that tax disputes resolution committee
in Sharjah Emirate shall be the competent jurisdiction if the ad dress of the objector
as indicated in the tax resignation file at the Authority locates in Sharjah, Ras al -
Khaimah, Ajman, Fujairah, or Umm al -Quwain Emirates.
4. If the objector is a foreign company and its address indicted in its tax registration
file at th e Authority outside UAE, tax disputes resolution committee in Abu Dhabi
shall be the competent one to hear the objections submitted by such objector.
5. If there is a jurisdiction dispute, the competent Department formed pursuant to
article (15) of this Resol ution on the dispute of jurisdiction. Cabinet Resolution of 20 18 Forming the Tax Disputes Resolution Committees, Its Bylaws, and
Procedures to be Followed before it 4
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (4)
Subordination of Committees
1. Committees formed pursuant to provisions of this Resolution shall be subject to
Ministry of Justice and under its supervision with respect to administrative and
financial aspects.
2. Tax experts who are members of committees shall be subject to same obligations
and controls of judges and their equals subject to laws, regulations, and resolutions
applicable in the State.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (5)
Independence and Non-Conflict of Interest
1. Any member in the committees shall be prohibited to participate in the works of
the committee when hearing any objection in which the member or his wife has a
direct or indirect interest, or there is affinity, kinship or fourth degree t o objector,
or is the legal representative, guardian, or administrator of the objector.
2. In all cases, a committee member shall abstain to hear an objection when any of
the above cases stated in clause (1) of this article exists. The stand -by committee
memb er shall replace such member, as in the case, and the objection shall be
decided by that formation.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (6)
Functions of the Committee
The committees shall do the following:
1. Decides the objections submitted against the Authority decision on the motions
for reconsideration.
2. Decides motions submitted to the Authority and the Authority does not issue a
decision subject to provisions of the referred to Federal law No. (7) of 2017. Cabinet Resolution of 20 18 Forming the Tax Disputes Resolution Committees, Its Bylaws, and
Procedures to be Followed before it 5
3. No objection motion may not be submitted to any other committee if it was
previously submitted to one committee and that committee decided it.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (7)
Submitting an Objection
1. Objection motion shall be submitted to the competent administration. It may be
submitted through electronic objection system that is prepared by the Authority.
2. The objection shall be submitted according to the form determined for this
purpose, provided that it shall include the following documents and details:
a. Name, details and address of the objector.
b. Summary of the subject of the m otion and other motions submitted.
c. Supportive documents of the motion
d. Electronic addresses of the legal representative or tax agent of the objector, in
addition to any other email determined by the objector.
e. Any other documents relevant to the reasons of o bjection.
3. An objection shall be recorded in the registers prepared for this purpose according
to its date of submittal. The objector shall get a receipt of objection submittal that
includes number of objection and the competent committee that shall hear it .
4. Competent administration shall send the objection of the competent committee
within a period that shall not exceed two working days following its submittal day.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (8)
Hearing the Objection
1. The committee shall examine the objection submitted to it and shall decide it
within twenty -one working days from the date of receiving the objection.
2. The committee may, upon its discretion or subject to the motion of the objector,
permit to hold hearings where the objector, his legal representative or tax agent
attends. The committee may decide the motion pursuant to documents provided. Cabinet Resolution of 20 18 Forming the Tax Disputes Resolution Committees, Its Bylaws, and
Procedures to be Followed before it 6
3. The committee may extend the period to decide the objection to a period that shall
not exceed additional (20) twenty work ing days after the expiry of the period
stated in clause (1) of this article, if the committee have considerable reasons for
the purpose of deciding the objection.
4. Without prejudice to clause (3) of this article, the committee may allow the
objector to submit any new documents that were not attached to his motion,
subject to an excuse acceptable by the committee or if the committee considers
such documents necessary for deciding the objection.
5. In all cases, tax disputes claims shall not be ac cepted before competent court if no
objection is submitted first to the committee.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (9)
Events to Reject the O bjection
The committee shall issue a decision to refuse the objection submitted in the two
following cases:
1. If a motion is not submitted t o the Authority to reconsider its decision before the
objection is presented.
2. If objected taxes and administrative penalties are not paid.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (10)
Decisions issued by the committees are final in the following cases:
1. Decision of the committee shall be deemed final against the objection of the total
due taxes and administrative penalties relevant to that tax does not exceed AED
100,000.
2. Final decisions issued by the committee for tax disputes that does not exceed AED
100,000 shall be deemed a wr it of execution subject to the provisions of Federal
Law No. (7) of 2017 referred to in this resolution.
3. Final decisions issued by the committee for tax disputes that does not exceed AED
100,000 shall be deemed a writ of execution if they are not appealed before the Cabinet Resolution of 20 18 Forming the Tax Disputes Resolution Committees, Its Bylaws, and
Procedures to be Followed before it 7
competent court within twenty (20) working days from the date the objection is
refused.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (11)
Appeal Against the Committees’ D ecisions
1. Without prejudice to article (10) of this Resolution, the Authority and the objector
may appeal against the decision of the committee before the competent court
within twenty (20) days from the date of the decision is issued by the committee,
otherwise the decision of the committee shall be deemed final and can be
appealed by any means.
2. Secretary of the committee shall send the objection file and all documents and
decision of the committee attached with it to the competent court within the
following two wor king days after the secretary receives a copy of the appeal brief
presented to the competent court.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (12)
The Committee ’s Secretary
Each committee shall have a secretary appointed by the Minister's resolution and shall
perform the following:
1. Receives objections from the relevant administration and provides the committee
members with the objection file with a date set for hearing.
2. Copies the decisions issued by the committee and presents them to the chairman
of the committee for execution.
3. Info rms the relevant administration and the objector with the decisions issued by
the committee with respect to the objection.
4. Sends the objection file with its documents to the competent court pursuant to
clause No. (2) of article No. (11) of this Resolution. Cabinet Resolution of 20 18 Forming the Tax Disputes Resolution Committees, Its Bylaws, and
Procedures to be Followed before it 8
5. Makes a quarterly report about the works made by the committee and the
objections decided, then such report is approved by the chairman of the committee
before sending it to the relevant administration.
6. Any other duties assigned by the chairman of the com mittee.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (13)
Functions of the Administration
Relevant administration shall perform the following:
1. Receives objections submitted against the decisions of the Authority and checks
that such objections fulfil the following details:
a. Name and details of the objector.
b. Number of the objected resolution, date of reporting and reasons of objection.
c. Date of submitting the motion to rehear to the Authority and the procedures
taken.
d. Payment of the due objected tax and administrative penalties, the sub ject of
the objection.
e. Ensures that there was no previous objection submitted by the objector against
the same decision of the Authority.
f. Ensures that clear address of the objector exists, his legal representative or tax
agent is identified.
2. Unifies the pa per and electronic forms used by these committees.
3. Prepares a quarterly report about the results of following up the committees' work,
including suggestions and recommendations. Such report shall be presented to the
head of the judicial inspection departme nt, provided that the report shall include
the following details:
a. Number of objections submitted to committees concerning the decisions of
the Authority.
b. How regular are the committees holding its sessions.
c. Number of sessions adjourned reasons for such act ion. Cabinet Resolution of 20 18 Forming the Tax Disputes Resolution Committees, Its Bylaws, and
Procedures to be Followed before it 9
4. Suggesting solutions of practical problems showing the committees' progress of
work and submitting such solutions to the heads of the committees for
consideration.
5. Gathering the principles contained in the decisions of committees and to circulate
them to other committees as preferential.
6. Receiving requests to committee member recusance and to refer such requests to
the department stipulated in article (15) of this Resolution.
7. Referral of jurisdiction disputes requests coming from the comm ittees and to refer
them to the department stipulated in article (15) of this Resolution within three
working days from the date on which such requests are received.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (14)
Recusance of Committee Members and its Procedures
An objector or the Authority may request recusance of any of the committee members
pursuant to the following procedures:
1. Recusance request shall be submitted to the relevant administration with its
reasons and supportive documents attached.
2. Relevant administration shall advi se the specific committee on the first working
day following the receipt of the recusance request. The committee shall suspend
deciding the objection until the recusance request is resolved.
3. Relevant administration shall refer the recusance request to the department -
stipulated in article (15) of this resolution within three working days from the date
the request is received.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (15)
Department Competent to Resolve Recusance and Jurisdiction
Disputes Requests
A department at Abu Dhabi Federal Court of Appeal Department shall be formed by a
resolution of the Minister. Such department will resolve the recusance requests Cabinet Resolution of 20 18 Forming the Tax Disputes Resolution Committees, Its Bylaws, and
Procedures to be Followed before it 10
concerning the members of tax disputes resolution committees and jurisdiction
dispute referred to the department by tax disputes resolution committees.
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (16)
1. The department formed pursuant to provisions of article (15) of this Resolution
shall resolve the recusance requests or jurisdiction dispute requests -as in the case -
within three (3) working days from the date of receip t and its decision shall be final
in this respect.
2. If a recusance request for any committee member is accepted in a way that may
cause non -quorum to convene, the stand -by judge member or expert shall replace
the one recused and the objection shall be heard by such formation.
3. If a decision from the relevant depratment is resolved to accept the full members
of the committee, such decision shall contain a referral of the objection to another
committee. This shall be an exception of the territorial jurisdcition provisions
stated in clause (2) of article (50) of this Resolution.
4. If a recusance request is dismissed, the objection shall be referred to the relevant
administration on the first working day following the issue date of the decision.
The rele vant administration shall refer the objection within three days to the
committee which shall resume its work subject to procedures stipulated in this
Resolution.
5. If a decision is issued by the relevant department resolving lack of jurisdiction of
the commi ttee to hear the objection, such decision shall include the relevant
committee to hear the objection and shall be referred to the administration to take
its procedures subject to provisions of this Resolution.
In all cases, the period determined for resolv ing the recusance or jurisdiction disputes
requests shall not be deducted from the period decided for the committee to resolve
the objection motion.
Cabinet Resolution of 20 18 Forming the Tax Disputes Resolution Committees, Its Bylaws, and
Procedures to be Followed before it 11
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tax | Cabinet Resolution No. (23) of 2018 Concerning the Formation of Tax Disputes Resolution Committees, and its Relevant Regulations and Procedures | Article (17)
Reimbursements
The Cabinet shall issue a resolution determining the reimbursements of the basic and
stand -by committee members and secretaries as suggested by the Minister.
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