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 legislation 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 part 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 steadiness from the Federal Tax Authority (FTA) or apply that steadiness towards excellent tax liabilities.
The framework additionally provides added flexibility in particular circumstances, enabling taxpayers to submit refund requests if a credit score steadiness arises after the five-year interval or throughout the closing ninety days of that window.
In response to the Ministry, this strategy strengthens monetary certainty and higher organises tax-related processes.
Federal Tax Authority laws
The amended legislation additionally expands the FTA’s powers regarding limitation intervals. The Authority could conduct audits or situation tax assessments even after a limitation interval has expired in sure circumstances, comparable to refund requests submitted throughout the closing yr of the interval.
This goals to strike a steadiness between defending taxpayers’ rights and safeguarding the state’s monetary entitlements.
Underneath the brand new provisions, the FTA could situation 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, cut back inconsistencies, and help more practical 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, supplied the FTA has not but issued a choice.
The modifications are anticipated to boost tax system effectivity, cut back administrative burdens, construct belief and transparency, and help sustainable public revenues—contributing to a extra aggressive enterprise surroundings and long-term financial development.
