The UAE Ministry of Finance has issued Federal Decree-Law No. (17) of 2025 amending Federal Decree-Law No. (28) of 2022 on Tax Procedures, aiming to improve the efficiency and transparency of the nation’s tax system. The changes will take effect on 1 January 2026.
The amendments establish a clearer framework for tax obligations, including setting a five-year limit for requesting refunds of credit balances with the Federal Tax Authority (FTA). In specific cases, taxpayers may still submit requests outside this period, ensuring flexibility while reinforcing financial certainty.
The law also expands provisions on limitation periods, allowing the FTA to conduct audits or issue assessments after the standard timeframe in certain situations, such as late refund requests. This balances the protection of taxpayers’ rights with safeguarding state revenues.
Additionally, the FTA is granted the authority to issue binding guidance on the application of tax legislation, streamlining implementation and reducing inconsistencies across cases. Transitional measures allow taxpayers with expired or soon-to-expire credit balances to submit refund requests within one year from 1 January 2026, with a two-year window for voluntary disclosures if no decision has been issued.
The Ministry emphasized that these amendments align the UAE’s financial policies with international best practices. By enhancing transparency, simplifying procedures, and protecting taxpayers’ rights, the changes aim to strengthen business confidence, reduce administrative burdens, and support sustainable economic growth.
News Source: Emirates News Agency
