The Federal Tax Authority (FTA) of the UAE has announced that, effective August 1, fees paid for "private clarification" on tax matters will be refunded if the clarification is not issued. This policy adjustment allows companies to request further clarification on one or multiple tax issues, initially introduced with a fee starting June 1, 2023.
Under this new regulation, if a company submits a request for clarification on one or more tax issues and the clarification is not issued, the full fee will be refunded. If the request pertains to multiple taxes and clarification is issued for only one, a partial refund will be provided. The refund amount will be calculated based on the difference between the fee for multiple taxes and the fee for a single tax.
Conditions for Fee Refund
According to Federal Tax Authority Decision No. 5 of 2024, issued on July 19, the specific cases where fees will be refunded include:
- Withdrawal of the private clarification request by the applicant within two business days from the submission date.
- The private clarification is submitted by a person not registered for Corporate Tax, and the subject is unrelated to tax registration inquiries.
- The applicant is under tax audit by the Authority at the time of the request submission.
- The request pertains to procedures following a decision already issued by the Authority.
- The request duplicates another ongoing clarification request by the same applicant on the same subject.
- The request concerns a subject that the Authority is coordinating with the Ministry of Finance to amend the relevant tax legislation.
These measures aim to ensure transparency and fairness in the fee structure for tax-related inquiries, enhancing the efficiency and reliability of the UAE's tax system.
News Source: Khaleej Times
