Mastering UAE Tax Procedures:
A Guide to the 2026 Executive Regulation Amendments

The Ministry of Finance in UAE have published Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures (the “New Executive Regulation”). Furthermore, the Federal Tax Authority (“FTA”) issued the Tax Procedures Public Clarification Number (6) (the “Tax Procedures Public Clarification”) on the issuance of New Tax Procedures Executive Regulation to clarify certain aspects related to the implementation of the New Executive Regulation.

The New Executive Regulation will come into effect as of 1 August 2023 with the exception to Clause (2) of Article (12) of the New Executive Regulation on the provisions relating to the conditions for registering juridical tax agents, as it will come into effect on 1 December 2023.

It is important to note that the Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 on Tax Procedures, and its amendments (the “Previous Executive Regulation”), is repealed by the New Executive Regulation.

Article 15 – Conducting Tax Audit:

1. Prior to conducting a Tax Audit, the Authority shall consider the necessity of the audit to protect the integrity of the Tax system, the responsibility of the Person to comply with the Decree-Law and Tax Law, the expected tax revenue, and the compliance and administrative burdens related to performing the Tax Audit.
2. The Authority may decide to audit a Person previously audited, taking into consideration the results of the previous Tax Audit and any new information or data which may change the position of the Authority.
3. The Authority’s decision to conduct a Tax Audit is at its sole discretion and may not be objected to or challenged by any Person.

Article 16- Notice of Tax Audit:

• Overall, the procedures of the tax audit and the rights and obligations remain the same as already in effect, however, under the New Executive Regulation the timeframe for the FTA to notify the person of a tax audit has been updated to be at least ten business days prior to the tax audit.

Article 17- Tax Audit Procedures:

1. The Authority may inspect Premises, documents, Assets, electronic data and records, and accounting systems for the purposes of conducting a Tax Audit.
2. The occupying tenant or any Person having control over the Premises shall provide all necessary facilitations.
3. The Authority may request any information or documents, and the Person shall provide them as specified in the Notification.
4. A Tax Auditor shall present the required permits, approvals, and proof of identity if requested.

Article 18- Seizure and Retain of Documents and Assets:

1. The Tax Auditor may make copies of documents, mark inspected documents and Assets, seize documents and Assets, and obtain and record relevant information.
2. The Tax Auditor may seize documents or Assets for the period required to complete the Tax Audit.
3. The Authority shall provide a record of seized documents or Assets within (10) Business Days to the relevant Person, including details such as purpose, description, storage location, and expected seizure period.
4. The Authority may store seized items and shall return them in as good condition as practically possible, and may dispose of perishable Assets in accordance with its procedures.
5. The Authority shall notify the owner before disposing of Assets and allow them to reclaim within (10) Business Days, and shall not be liable for any resulting loss.
6. The Authority may allow or refuse access to seized documents or Assets if such access may prejudice the Tax Audit, another audit, investigations, or criminal proceedings.
7. The Authority may retain documents or Assets for longer periods or extend seizure periods, with notification where possible.

Article 19- Results of the Tax Audit:

1. The Person subject to the Tax Audit shall be notified of the results of the Tax Audit within (10) Business Days from the end of the Tax Audit.
2. The Person may request access to or obtain documents, data, and information used by the Authority in the assessment of Due Tax within (20) Business Days from notification of the results.
3. The Authority shall provide the requested documents, data, and information within (10) Business Days, either as copies or originals where applicable.
4. The Authority is not obliged to provide internal correspondence or decisions, confidential information related to other Persons, or documents already in the possession of the Person, but shall provide sufficient information to identify them.

Article 20- Tax Assessments:

1. A Tax Assessment shall contain sufficient information to determine Payable Tax, refundable Tax or any other matters specified by the Tax Law, and include: name and address, Tax Registration Number (if applicable), Tax Assessment reference number, Tax type, Tax summary (including reported Tax and adjustments), reasons for the assessment, net Tax due or refundable, and the payment due date and method.
2. Where Tax due to the Authority has been assessed and notified to a Person, it shall be deemed a payable debt to the Authority and may be collected accordingly.

Article 21 – Administrative Penalties Assessment:

1. An Administrative Penalties Assessment shall include: the Person’s name and address, Tax Registration Number (if applicable), the violation, an Administrative Penalty summary (including the penalty amount and any related Tax amount), and the total Administrative Penalties due.
2. An assessed and notified Administrative Penalty shall be deemed a payable debt to the Authority from the date of Notification and may be collected accordingly.

Article 22 – Procedures and Measures:

1. Article (22) has been added to the New Executive Regulation giving the FTA the right to sell seized and abandoned goods that are perishable, and which are owned by a registrant.
2. Subject to certain conditions, the owner of seized goods may request their recovery after the payment of all outstanding payable tax, all outstanding administrative penalties and any other expenses associated with such goods.

Articles (23 and 24) – Reconciliation in Tax Evasion Crimes:

1. The reconciliation in tax evasion crimes prior to the initiation of a criminal case, after initiation of a criminal case, or after issuance of a conviction judgment and its conditions, have been added to the New Executive Regulation.
2. The conditions, controls, and procedures for reconciliation in tax evasion crimes are outlined in Article (24).

Article (25) – Extension of Deadlines:

1. The FTA may extend the deadline for deciding on a tax assessment review request and a reconsideration request, for a period of twenty business days if the extension is necessary for the decision-making process.
2. The Tax Disputes Resolution Committee may extend the deadline for deciding on a tax objection, for a period of sixty business days if the extension is necessary to decide on the objection.
3. The FTA may, at the request of the person, extend the deadline for submission of a tax assessment review or a reconsideration request, in cases deemed appropriate by the FTA.
4. The Tax Disputes Resolution Committee may, at the request of the person, extend the deadline for submission of a tax objection, mainly in emergency or force majeure situations.

Article 26 – Credit Balance Refund Procedures:

• The title changes from Tax Refund Procedures to Credit Balance Refund Procedures.
• The text now expressly refers to refund of credit balance, while the 20-business day decision period and 5 business day repayment initiation period remain, Distinguish credit balance refunds more clearly in refund and compliance processes.

Article 27 – Payment of Tax and Administrative Penalties in Cases of Bankruptcy:

1. Where a Business or part thereof is subject to bankruptcy and a trustee is appointed, the trustee shall represent the Person in respect of its Business until the end of his appointment.
2. The bankruptcy trustee shall notify the Authority of his appointment within (20) Business Days.
3. The Authority shall notify the trustee of the Due Tax amount and its intention to conduct a Tax Audit within (20) Business Days after notification of the trustee’s appointment.
4. The bankruptcy trustee shall settle any Payable Tax in accordance with the Decree-Law and the Tax Law.

Article 28 – Confidentiality and Disclosure of Information:

• Disclosure to a competent government entity now requires an agreement with the Authority that ensures confidentiality and data protection and defines permitted use and control procedures, replacing the earlier memorandum wording, Reinforce data governance and information-sharing controls.

Article 29 – Request of Information and Documents:

• The Authority may request the accounting records, commercial books and any other data and information from any Person in order to fulfil its duties and powers under the Decree-Law and the Tax Law and any executive decisions thereof.

Article 30 – Abrogation:

1. Cabinet Decision No. 36 of 2017 on the Executive Regulation of Federal Law No. 7 of 2017 on Tax Procedures, and its amendments, shall be abrogated.
2. Any provision contrary to or inconsistent with the provisions of this Decision shall be abrogated.
3. Decisions issued by the Authority and procedures applied for the implementation of Cabinet Decision No. 36 of 2017 and its amendments shall remain in force, insofar as they do not contradict this Decision, until replaced in accordance with its provisions.

(Accordingly, the provisions of this Decision establish the legal and procedural framework governing Tax Audit processes, along with the related powers, obligations, and procedures, thereby ensuring clarity of procedures and strengthening compliance with the applicable tax legislation.)