The UAE has launched vital updates to its tax procedures framework with the issuance of Federal Decree-Legislation No. (17) of 2025, amending key provisions of Federal Decree-Legislation No. (28) of 2022 on Tax Procedures.
The Ministry of Finance confirmed that the brand new regulation will take impact on January 1, 2026.
The amendments enhance effectivity, improve readability for taxpayers, and strengthen transparency, equity and monetary self-discipline throughout the UAE’s tax system.
UAE tax guidelines
A central element of the amendments is an outlined interval—not exceeding 5 years from the tip of the related tax interval—for taxpayers to request a refund of a credit score stability from the Federal Tax Authority (FTA) or apply that stability towards excellent tax liabilities.
The framework additionally provides added flexibility in particular circumstances, enabling taxpayers to submit refund requests if a credit score stability arises after the five-year interval or throughout the last ninety days of that window.
Based on the Ministry, this method strengthens monetary certainty and higher organises tax-related processes.
Federal Tax Authority rules
The amended regulation additionally expands the FTA’s powers regarding limitation intervals. The Authority could conduct audits or difficulty tax assessments even after a limitation interval has expired in sure circumstances, akin to refund requests submitted in the course of the last yr of the interval.
This goals to strike a stability between defending taxpayers’ rights and safeguarding the state’s monetary entitlements.
Below the brand new provisions, the FTA could difficulty official and binding instructions—to taxpayers and to the Authority itself—on the appliance of tax laws to particular transactions.
This measure is meant to unify interpretation, scale back inconsistencies, and help simpler and sensible implementation throughout the tax system.
Transitional provisions
To make sure equity and consistency, the amendments introduce transitional measures for taxpayers with credit score balances whose five-year interval expired earlier than January 1,2026 or is because of expire inside one yr from that date.
These taxpayers could submit refund requests inside one yr from January 1, 2026.
They could additionally file a voluntary disclosure associated to the request inside two years from the submitting date, offered the FTA has not but issued a choice.
The modifications are anticipated to boost tax system effectivity, scale back administrative burdens, construct belief and transparency, and help sustainable public revenues—contributing to a extra aggressive enterprise setting and long-term financial development.
