Federal Decree by Law Concerning Tax Procedures

Article-level navigation isn't available for this document — showing the full text as extracted.

Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures

Issued Date: 30 Sep 2022
Effective Date: 01 Mar 2023
Official Gazette Date: 10 Oct 2022
Official Gazette No: 737
Legislation State: Active
Legislation Amendments: 2

Disclaimer: Every effort has been made to produce an accurate and complete English version of this website/legislation. However, for the purpose of their interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail.

Preamble (preview): We, Mohammed bin Zayed Al Nahyan, President of the United Arab Emirates, Having reviewed: The constitution; Federal Law No. (1) of 1972 on the Competences of Ministries and the Powers of Ministers, as amended; Federal Law No. (11) of 1981 on the Imposition of a Federal Customs Tax on Imports of Tobacco...; Federal Law No. (5) of 1985 Promulgating the Civil Transactions Law, as amended; Federal Law No. (11) of 1992 Promulgating the Code of Civil Procedure, as amended; Federal Law No. (35) of 1992 Promulgating the Code of Criminal Procedure, as amended; Federal Law No. (18) of 1993 Promulgating the Commercial Transactions Law, as amended; Federal Decree-Law No. (9) of 2016 on Bankruptcy, as amended; Federal Decree-Law No. (13) of 2016 on the Establishment of the Federal Tax Authority, as amended; Federal Decree-Law No. (7) of 2017 on Tax Procedures, as amended; Federal Decree-Law No. (7) of 2017 on the Excise Tax, as amended; Federal Decree-Law No. (8) of 2017 on the Value-Added Tax (VAT), as amended; Federal Decree-Law No. (15) of 2018 on the Collection of Revenues and Public Funds; Federal Decree-Law No. (26) of 2019 on Public Finance; Federal Decree-Law No. (31) of 2021 Promulgating the Law of Crimes and Penalties; Federal Decree-Law No. (32) of 2021 on Commercial Companies; Federal Decree-Law No. (37) of 2021 on the Commercial Registry; Federal Decree-Law No. (46) of 2021 on Electronic Transactions and Trust Services; and Based on the Proposal of the Minister of Finance and the Cabinet approval thereof, Hereby enact the following Law.

FULL STRUCTURE AND ARTICLE PREVIEWS (57 Articles across 6 Parts):

Part One: Definitions and Scope of Application

Article (1) Definitions: For the purpose of applying the provisions of this Decree-Law, the following words and expressions s[hall have the meanings ascribed to them]... Defines: State, Minister, FTA, Director-General, Business Day, Committee, Competent Court, Tax, Tax Law, Tax Domicile Certificate, Tax Resident, Person, Business, Taxable Person, Taxpayer, Tax Return, Tax Period, Tax Registration, Tax Registration Number, Registered Person, Legal Representative, Due Tax, Payable Tax, Administrative Fines, Refundable Tax, Tax Assessment, Assessment of Administrative Fines, Notification, Voluntary Declaration, Register, Tax Agent, Tax Audit, Tax Auditor, Tax Evasion, Executive Regulations, E-Invoicing System.

Article (2) Objectives of this Decree-Law: This Decree-Law is intended to: 1. Regulate rights and obligations of the FTA, Taxpayers and any othe[r persons subject to the Tax Law]...

Part Two: Tax Obligations

Chapter One: Keeping Accounting Records and Commercial Books

Article (4) Record-Keeping: Any Person that carries out any business or is subject to an obligation under the Tax Law shall keep[accounting records and commercial books for the periods specified]...

Article (4) BIS E-Invoicing System: 1. The Minister shall issue the resolutions required for implementing the E-Invoicing System, determ[ining its scope and procedures]...

Article (5) Language: 1. Every Person shall submit the Tax Return as well as data, information, records and documents relat[ed to Tax in Arabic, unless otherwise permitted]...

Chapter Two: Tax Registration

Article (6) Tax Registration, Deregistration and Amendment to Data: 1. The Taxable Person may submit the registration application to the FTA pursuant to the provisions s[et out in the Tax Law]...

Article (7) Legal Representative: The Legal Representative shall: 1. Notify FTA of his appointment, within twenty (20) Business Days fr[om the date of appointment]...

Chapter Three: Tax Return and Payable Tax

Article (8) Tax Return Preparation and Submission: 1. Every Taxable Person shall: a. Prepare and submit the Tax Return to FTA pursuant to the provisio[ns of the Tax Law]...

Article (9) Determination of the Payable Tax: 1. The Taxable Person shall, upon the payment of any amount to FTA, determine the type of Tax and the[Tax Period to which the payment relates]...

Chapter Four: Voluntary Declaration

Article (10): 1. If the Taxable Person finds out that the Tax Return submitted to FTA or the Tax Assessment issued [contains an error, a Voluntary Declaration procedure applies]...

Part Three: Tax Procedures

Chapter One: Notification

Article (11) Methods of Notification: 1. FTA shall notify the Person of any decisions or procedures through their address registered with t[he FTA]...

Chapter Two: Tax Agents

Article (12) Tax Agent Registration: 1. FTA shall create a Tax Agent Register. 2. Any Person may operate as a Tax Agent in the State only a[fter registering in the Register]...

Article (13) Requirements for Registration in the Register: 1. The Executive Regulations shall determine the conditions, controls and procedures for registration[of Tax Agents]...

Article (14) Appointment of Tax Agent: 1. The Person may appoint a Tax Agent to act on its behalf and in its name in respect of its obligati[ons before FTA]...

Article (15) Records of the Person with the Tax Agent: 1. The Tax Agent shall retain the information, documents, records and data related to any Person repr[esented by him]...

Chapter Three: Tax Audit

Article (16) FTA's Right to Conduct Tax Audit: 1. FTA may conduct a Tax Audit of any Person in order to verify the compliance with the provisions se[t out in the Tax Law and this Decree-Law]...

Article (17) FTA's Right to Access to Original Records or Photocopies During Tax Audit: A Tax auditor may, while conducting the Tax Audit, access to original records or photocopies thereof[and take copies or extracts]...

Article (18) Tax Audit Timing: A Tax Audit shall be conducted during the normal business hours of FTA. If necessary, the audit may [be conducted outside such hours]...

Article (19) New Information Appears After Tax Audit: Without prejudice to the provisions of Article (46) hereof, FTA may audit any matter that had alread[y been audited if new information emerges]...

Article (20) Cooperation During Tax Audit: Any Person subject to a Tax Audit or their Tax Agent or legal representative shall be required to pr[ovide all facilities and assistance to the Tax Auditor]...

Article (21) Rights of Persons Subject to Tax Audit: A Person subject to a Tax audit shall have the right to: 1. Request Tax auditors to show their profes[sional identification cards]...

Article (22) Notification of Tax Audit Findings: 1. FTA shall notify the Person subject to Tax Audit of the Tax Audit outcome within the time limit an[d in the manner set out in the Executive Regulations]...

Chapter Four: Tax Assessment and Assessment of Administrative Fines

Article (23) Tax Assessment: 1. FTA shall issue a Tax Assessment to determine the value of the Payable Tax, Refundable Tax or any [other amounts due]...

Article (24) Assessment of Administrative Fines: 1. FTA shall issue an assessment of Administrative Fines and inform the Person of same within (5) fiv[e Business Days]...

Chapter Five: Penalties, Procedures and Measures

Article (25) Tax Crimes and Penalties: 1. The penalties set forth herein shall not prejudice to any severer penalty stipulated in any other [law]...

Article (26) Procedures and Measures: 1. A criminal action may be instituted against the crimes set forth in this Decree-Law or the Tax Law[in accordance with the Criminal Procedure Code]...

Article (27) Reconciliation on Tax Evasion Crimes: 1. Before a criminal action is instituted, FTA may enter into reconciliation on Tax Evasion crimes an[d related penalties]...

Part Four: Tax Assessment Review, Objection and Challenge

Chapter One: Application for Tax Assessment Review

Article (28) Application for Tax Assessment Review: 1. Without prejudice to the provisions of Article (29) hereunder, any Person may submit an applicatio[n for review of the Tax Assessment]...

Chapter Two: Application for Reconsideration

Article (29) Application for Reconsideration: 1. Any Person may submit an application to FTA for reconsideration of any decision or part thereof is[sued by FTA]...

Chapter Three: Objection Submitted to the Committee

Article (30) Tax Dispute Settlement Committee: 1. One or more standing committees to called "Tax Dispute Settlement Committee" shall be formed under[a resolution of the Minister of Justice]...

Article (31) Competences of the Committee: The Committee shall have the following competences: 1. To decide on objections filed against FTA's de[cisions]...

Article (32) Objection Submission Procedures and Cases of Objection Rejection: 1. An objection to the decision of FTA with regard to an application for reconsideration shall be sub[mitted within the prescribed time limit]...

Article (33) Procedures of the Committee: 1. The Committee shall consider the objection submitted thereto and decide thereupon within (20) twen[ty Business Days]...

Article (34) Enforcement of the Committee's Decisions: 1. Final decisions made by the Committee on disputes not exceeding AED (100,000) one hundred thousand [dirhams shall be final]...

Article (35) Extension of Time Limits: 1. FTA or the Committee, as the case may be, for any reason whatsoever, may extend any of the time li[mits set out in this Decree-Law]...

Article (36) Appeal Proceedings Before Courts: 1. Without prejudice to the provisions of Article (34) and (37) above, FTA and the Person, as the cas[e may be, may appeal to the competent court]...

Article (37) Special Procedures for Objection and Appeal: Notwithstanding the provisions of Articles (31), (32), (33), (34) and (36) above, the Cabinet shall [issue a resolution setting out special procedures]...

Part Five: Tax Recovery and Collection

Chapter One: Recovery of Tax

Article (38) Application for Refund of the Tax Credit Balance: 1. The Taxpayer may submit an application to the Authority for the refund of any credit balance to w[hich they are entitled]...

Article (39) Tax Refund Procedures: 1. FTA shall make a set-off between the amount required to be refunded and any other undisputed Payab[le Tax or Administrative Fines]...

Chapter Two: Tax Collection

Article (40) Collection of Payable Tax and Administrative Fines: 1. If the Person fails to pay the Payable Tax within the time limits specified in this Decree-Law and[the Tax Law, FTA may take collection measures]...

Chapter Three: Payment and Collection of Tax and Administrative Fines in Special Cases

Article (41) Liability for Payment of Tax and Administrative Fines in Case of Partnership: Without prejudice to any provisions in the Tax Law, if multiple Persons participate in business that[is subject to Tax, they shall be jointly liable]...

Article (42) Payment of Tax and Administrative Fines in Special Cases: 1. The amount of Payable Tax shall be paid in cases of death as follows: a. For the Payable Tax of [a deceased natural person]...

Article (43) Payment and Administrative Fines of Tax in Case of Bankruptcy: 1. An appointed bankruptcy trustee shall communicate with FTA to inform him of the Due Tax or FTA's d[ue claims]...

Part Six: General Provisions

Chapter One: Confidentiality and Conflict of Interest

Article (44) Professional Confidentiality: 1. Employees of FTA shall not disclose the information obtained or accessed to in their professional [capacity except in cases specified]...

Article (45) Conflict of Interests: Any employee of FTA may not perform or engage in any tax procedures related to any Person in the fol[lowing cases]...

Chapter Two: Time Limits & Prescription

Article (46) Statute of Limitations: 1. Except for the cases set out in Clauses (2), (3), (4), (7), and (8) hereunder, the Authority may [not conduct a Tax Audit or issue a Tax Assessment after 5 years from the end of the relevant Tax Period]...

Article (47) FTA's Right to Claim Payment: The Payable Tax and Administrative Fines, which have been notified to the Taxable Person, shall not [be subject to the statute of limitations set out in Article 46]...

Article (48) Time Limit for Tax Obligations: Unless a specific time limit is set for the performance of any obligation or any other action in thi[s Decree-Law, the Executive Regulations shall determine it]...

Article (49) Calculating the Time Limits: In all cases, the following rules shall apply upon calculating the time limits: 1. The Notification d[ate shall be the starting point]...

Article (50) Controls of Administrative Fines Payment in Installments, Exemption and Refund: 1. If FTA levies or collects an Administrative Fine from any Person for violating the provisions of t[his Decree-Law or Tax Law, the Person may request installment payment, exemption or refund subject to conditions]...

Chapter Three: Miscellaneous Provisions

Article (51) Proving the Authenticity of Data: The burden of proving the Tax Return authenticity shall lie with the Taxable Person. In cases of Tax[Assessment, the burden shifts accordingly]...

Article (52) Judicial Police: The Director-General and Persons designated under a resolution of the Minister of Justice, in agreem[ent with the Minister, shall have the capacity of judicial officers]...

Article (53) Tax Resident: 1. For the purpose of the Tax Law or any convention or arrangement to which the State is a party, the[Tax Resident is determined per specified criteria]...

Article (54) FTA Fees: By virtue of a Cabinet resolution, at the proposal of the Minister, the fees payable to FTA shall be[determined]...

Article (54) BIS: Without prejudice to the provisions of the applicable Tax legislation, the Authority may issue decis[ions related to additional tax procedures]...

Article (55) Repeals: 1. Federal Law No. (7) of 2017, on Tax Procedures, as amended, shall hereby be repealed. 2. Any provis[ion contradicting this Decree-Law is repealed]...

Article (56) Executive Regulations: The Cabinet shall issue, at the proposal of the Minister, the Executive Regulations of this Decree-L[aw]...

Article (57) Publication and Entry into Force of the Decree-Law: This Decree-Law shall be published in the Official Gazette, and shall enter into force as of 1st Mar[ch 2023]...

Translated in cooperation with
</content>