An Article Outlining the Amendments to the Executive Regulation of Federal Decree-Law No. 28 of 2022 on Tax Procedures (Cabinet Decision No. 17 of 2026)

Introduction:

The Executive Regulation of Federal Decree-Law No. 28 of 2022 on Tax Procedures plays a key role in organizing tax compliance and procedures in the United Arab Emirates. It was issued under Cabinet Decision No. 74 of 2023 and became effective on 1 August 2023, providing clear guidance on how tax rules should be applied by both taxpayers and the Federal Tax Authority (FTA). As part of the UAE’s ongoing efforts to improve its tax system, Cabinet Decision No. 17 of 2026 was introduced, effective from 1 April 2026.
This update aims to further clarify tax procedures, strengthen compliance requirements, and improve the overall efficiency of the tax framework. Together, these regulations create a clear and structured system that helps businesses understand their obligations, avoid penalties, and ensure proper communication with the FTA.
They also highlight the importance of taking a proactive approach to tax compliance, rather than simply reacting to issues after they arise.

Article 1 – Definitions:

The definition of the term “assets” has been expanded to include intangible assets such as patents, brands, licenses, trademarks, computer programs, copyrights, goodwill, and customer lists.

Article 2 – Keeping Records:

The record keeping requirements have been updated to include documents such as correspondences, invoices, contracts, and other documents supporting the accounting entries, positions and calculations made, including documents supporting related party transactions (transfer pricing documentation).

Article 3 – Period of Record Keeping:

The periods of record keeping have been updated as follows:

• Real estate related records and information needs to be retained for seven years from the end of the calendar year in which the document was created (this is different to VAT Law).

• An additional period of one year will be added if a voluntary disclosure is submitted in the fifth year from the end of the relevant tax period.

Article 4 – Method of Keeping Accounting Records and Commercial Books:

• Businesses must maintain accounting records and commercial books either with original supporting documents or copies of the information.

• When copies are used, they must be fully identical to the original documents.

• Records must be retained for the legally required retention period.

• Information can be stored in physical or electronic format, provided it is clear and readable.

• Taxpayers must be able to provide records to the Authority upon request within the specified timeframe.

• Records must be maintained in a way that allows the Authority to verify tax obligations effectively.

• The Authority has the right to set rules and impose requirements to ensure that stored records are as reliable as original documents.

Article 5 – Language:

• Under the New Executive Regulation, the FTA may now accept the tax return, information, records, and any other documents related to tax to be submitted in either English or Arabic.

• For Arabic translations specific conditions are added.

Article 6 – The Procedures of Tax Registration, Deregistration and Amendment of Registration Data:

• Overall, the procedures of tax registration, deregistration and amendment of registration remain the same as already in effect, however, there has been the following key updates:

• The requirements to notify the FTA by the registrant on any changes in the data and information have been extended to cover email addresses, trade license activities, legal status, and partnership agreements for unincorporated partnerships.

• In cases where a registrant is required to deregister from certain tax type but does not submit a deregistration application, the FTA may now initiate such a process themselves.

Article 7 – Obligations of Licensing Authorities in the State:

• Licensing authorities must notify the Authority within 20 business days of issuing or renewing a business licence.

• The notification must include the name of the licensee.

• It must provide details of the licence type, number, and issuance date.

• The registered address of the business must be included.

• A description of the business activities must be provided.

• Information about owners, partners, and directors must be disclosed.

• The Authority may request additional information as needed.

Article 8 – Legal Representative:

• A Legal Representative must notify the Authority of their appointment using the specified mechanism.

• The notification must include a supporting document proving the appointment.

• Required details include the name and address of the Legal Representative.

• It must also include the name, address, and Tax Registration Number (if applicable) of the Taxable Person.

• The duration of the appointment must be specified if it is for a fixed term.

• The responsibilities of the Legal Representative must be clearly defined.

• The Authority may request additional information to verify the appointment from relevant parties.

• Once approved, the Authority will notify the Legal Representative within 20 business days.

Article 9 – Allocation of Payments and Credit:

• If a Taxable Person makes a payment without specifying the tax type or tax period, the Authority may allocate the payment to outstanding liabilities based on seniority.

• Any excess amount paid beyond existing liabilities will be treated as a credit balance for future tax obligations, unless a refund is requested in accordance with the Decree-Law.

• The Authority has the right to use the credit balance to settle any outstanding amounts owed by the Taxable Person, also based on seniority.

• The Authority must notify the Taxable Person of any allocation of payments or credit made under this Article.

Article 10 – Submission of Voluntary Disclosure:

The voluntary disclosure requirements have been updated as follows:

• Where an error is resulting in a calculation of an additional output tax less than AED 10,000, the registrant is allowed to correct the error in the next tax return due for submission (either for a previous tax period or for the period in which the error has been discovered).

• As per the Public Clarification, the FTA stipulated that for any errors, the registrant will be required to submit a voluntary disclosure to correct the error.

Article 11 – Means of Notification:

• The Authority may notify the taxpayer, Tax Agent, or Legal Representative through multiple channels, including email, SMS, post, or the Authority’s electronic system.

• Notification may also be made by posting at the business premises or any agreed written method.

• The registered address includes any address provided to the Authority or the last known place of residence or business.

Article 12 – Conditions and Controls for Registration of Tax Agents:

• The conditions to become tax agent as a natural person have been updated with the following key updates:

• It is no longer a requirement for the tax agent to be able to communicate in both Arabic and English, as fluency in either of these languages is acceptable.

• The tax agent must not be a current member of the Tax Disputes Resolution Committee.

Article 13 – Procedures for Tax Agent Listing and Delisting in the Register:

• The procedures of listing and delisting of tax agents have been updated with the key update that the listing of a juridical person in the tax agent register is valid for one year from the date of listing.

Article 14 – Obligations and Rights of Tax Agents:

Additional obligations have been added in relation to the tax agents’ obligations in performing their duties as follows:

• Tax agents are now required to continue to meet the continuous professional development requirements that will be further specified by the FTA.

• Tax agents are now subject to documentation retention requirements (documents, records, and data) in respect to any person represented by them.

Summary:

In summary, these provisions outline the key requirements that businesses must follow to ensure proper tax compliance in the UAE. Maintaining accurate records, meeting deadlines, and ensuring clear communication with the Authority are essential to avoid penalties and ensure smooth operations. A well-organized and proactive approach to tax matters will support businesses in meeting their obligations efficiently and confidently.