Federal Law No. 7 of 2017
On the Tax Procedures
We, Khalifa Bin Zayed AL Nahyan, President of the United Arab Emirates,
After perusal of the Constitution;
Federal Law no. (1) of 1972 on Competencies of the Ministries and Powers of the Ministers and its amendments;
Federal Law no. (5) of 1975 on the Commercial Register;
Federal Law no. )11( of 1981 concerning the Imposition of a Federal Customs Tax on Imports of Tobacco and its Derivatives and its amendments;
Federal Law no. (5) of 1985 Promulgating the Civil Transactions Law and its amendments;
Federal Law no. )3( of 1987 ؛Promulgating the Penal Code and its amendments;
Federal Law no. )10( of 1992 Promulgating the Law of Evidence in Civil and Commercial Transactions and its amendments;
Federal Law no. )11( of 1992 Promulgating the Civil Procedure Law and its amendments;
Federal Law no. (35) of 1992 Promulgating the Penal Procedure Law and its amendments;
Federal Law no. (18) of 1993 Promulgating the Commercial Transactions Law;
Federal Law no. (17) of 2004 on the Combat of Commercial Concealment;
Federal Law no. (1) of 2006 on Electronic Commerce and Transactions;
Federal Decree-Law no. )11( of 2008 on Human Resources in the Federal Government and its amendments;
Federal Law no. (1) of 2011 on the General Revenues of the UAE;
Federal Law no. )6( of 2012 Regulating the Translation Profession;
Federal Law no. (12) of 2014 Regulating the Auditing Profession;
Federal Law no. (2) of 2015 on the Commercial Companies;
Federal Decree-Law no. (9) of 2016 on Bankruptcy;
Federal Decree-Law no. (13) of 2016 on the Establishment of the Federal Tax Authority;
Based on the proposal of the Minister of Finance, after the approval of the Council of Ministers and the Federal National Council and the approval of the Federal Supreme Council,
Have promulgated the following law:
Title 1
Definitions and Scope of Application of the Law
Article 1- Definitions
In the application of the provisions hereof, the following terms and expressions shall have the meanings assigned thereto, unless the context indicates otherwise:
State: United Arab Emirates.
Minister: Minister of Finance.
Authority: Federal Tax Authority.
Director-General: Director-General of the Authority.
Committee: Tax Dispute Resolution Committee.
Competent Court: The Federal Court within whose jurisdiction the headquarters of the Authority or any branch thereof is located.
Tax: Any Federal Tax the management, collection and enforcement of which shall be assigned to the Authority.
Tax Law: Any Federal Law under which a Federal Tax is imposed
Person: Any natural or legal person.
Business: Any activity being regularly, continuously, and independently practiced by any person in any place, such as the industrial, commercial, agricultural, craft or service activity, the excavation activities or any other work related to the use of physical or non-physical properties.
Taxable Person: Person who is subject to tax by virtue of the provisions of the relevant Tax Law.
Taxpayer: Any Person who shall be obliged to pay Tax in the State by virtue of the Tax Law, whether being a Taxable Person or a Final Consumer.
Tax Return: The information and data defined for Tax purposes, submitted by a Taxable Person according to the Model prepared by the Authority to this effect.
Tax Period: A defined period of time for which the payable tax shall be calculated and settled
Tax Registration: A procedure by virtue of which the Taxable Person or his Legal Representative shall register with the Authority for tax purposes
Tax Registration Number: A unique number issued by the Authority for each Peron registered for tax purposes.
Registrant: The Taxable Person having obtained a Tax Registration Number
Legal Representative: Manager in a certain company; guardian, trustee or custodian of an incapacitated person or a person lacking capacity; trustee in bankruptcy appointed by the Court for a company in bankruptcy or any Person being legally appointed to represent another Person.
Due Tax: The tax that is calculated and imposed by virtue of the provisions of any Tax Law.
Payable Tax: Tax that becomes due for payment to the Authority.
Administrative Penalties: Amounts of money imposed on a Person by the Authority in case of violation of the provisions of the present Law or of the Tax Law.
Refundable Tax: Amounts which were paid and which the Authority can return, whether in whole or in part, to the Taxpayer according to the relevant Tax Law , or were required to be used for the settlement of administrative dues or to be carried forward to future tax periods based on the type of refund according to the Tax Law.
Tax Assessment: A decision issued by the Authority with regard to the Payable Tax or Refundable Tax
Administrative Penalties Assessment: A decision issued by the Authority with regard to any administrative penalties due.
Notification: A notification of the concerned Person, his Tax Agent or Legal Representative of the decisions issued by the Authority through the means set out in the present Law and its Implementing Regulation.
Voluntary Disclosure: A model prepared by the Authority by virtue of which the Taxpayer shall notify the Authority of any error or omission in the Tax Return, Tax Assessment or Tax Refund application according to the provisions of the Tax Law.
Register: Tax Agents Register.
Tax Agent: Any Person registered with the Authority in the Register and being appointed on behalf of another person to represent him before the Authority and assist him to fulfil his tax obligations and exercise his related Tax Rights.
Tax Audit: A procedure undertaken by the Authority to inspect the commercial registers or any information or data related to a Person practicing the Works.
Tax Auditor: Any of the Authority’s employees appointed as Tax Auditor.
Tax Evasion: The use of illegal means resulting in the reduction of the amount of the Due Tax, non-payment thereof or refund of a tax by a person not having the right to refund same under any Tax Law.
Article 2- Scope of Application of the Law
The provisions of the present Law shall apply to the tax procedures related to the management, collection and execution of Taxes by the Authority.
Article 3- Objectives of the Law
The present Law shall aim at achieving the following:
1- Organising the mutual rights and obligations between the Authority, the Taxpayer and any other Person dealing with the Authority.
2- Organising the common procedures and rules applied to all Tax Laws in the State.
Title 2
Tax Obligations
Chapter 1
Keeping Accounting Records and Commercial Books
Article 4- Record Keeping
Any Person conducting any business shall keep records of his accounting activities, commercial books and any information related to the Tax and determined under the Law Tax, provided that said records are kept according to the controls prescribed by the Implementing Regulation of the present Law.
Article 5- Language
1- Each Person shall submit the Tax Return, data, information, records and documents related to the Tax, which he shall be obliged to submit to the Authority in Arabic, according to the provisions of the Tax Law.
2- The Authority may accept data, information, records and documents related to the Tax and submitted in any other language, provided that the Person undertakes to provide the Authority with a translated copy thereof into Arabic at his own expenses and responsibility in case he is requested to do so and according to the provisions of the Implementing Regulation of the present Law.
Chapter 2
Tax Registration
Article 6- Tax Registration, Cancellation Thereof and Amendment of its Data
1- The non-registered Taxable Person or any other Person eligible to be registered shall submit a registration application according to the provisions set forth to this effect in the Tax Law.
2- The Registrant shall carry out the following:
a- Include his Tax Registration Number in all correspondences and transactions with the Authority or others according to the provisions of the Tax Law.
b- Notify the Authority, using the Model prepared by the latter to this effect, of the occurrence of any event requiring the amendment of the information of his Tax Record that is kept with the Authority, within (20) twenty working days from the date of occurrence of such event.
c- Submit an application for the cancellation of his Registration according to the relevant provisions set forth to this effect in the Tax Law.
3- The Implementing Regulation of this Law shall determine the procedures of Tax Registration, the cancellation thereof and the amendment of its data with the Authority.
4- The governmental entities responsible for granting the business licences shall undertake to notify the Authority of any granted licence within a period of no more than (20) twenty days as of the date of issuance thereof, according to the provisions of the Implementing Regulation of the present Law.
Article 7- The Legal Representative
Any Person appointed as a Legal Representative of a Taxable Person, his properties or estate shall notify the Authority within a period of (20) twenty working days from the date of his appointment, according to the procedures set forth in the Implementing Regulation of the present Law.
Chapter 3
Tax Obligations
Article 8- Preparation and Submission of the Tax Return
1- Every Taxable Person shall carry out the following:
a- Prepare the Tax Return for each Tax Period for which the Registration has been made, according to the Tax Law.
b- Submit the Tax Return to the Authority according to the provisions of the present Law and of the Tax Law.
c- Settle any Payable Tax as determined in the Tax Return or in any Tax Assessment within the time limit defined in the present Law or the Tax Law.
2- Any incomplete Tax Return submitted to the Authority shall be treated as rejected by it in case it does not include the main data defined under the Tax Law.
3- Every Taxable Person shall be responsible for the accuracy of the information and data included in the Tax Return related thereto and in any correspondences with the Authority.
4- Every Taxpayer should settle any prescribed Administrative Fines within the time period set forth in the present Law and the Tax Law.
Article 9- Determining Payable Tax upon Settlement
1- Upon settlement of any amount to the Authority, the Taxable Person should designate the type of the Tax and the Tax Period related to this amount. The Authority shall allocate the settled amount accordingly.
2- In the event the Taxable Person settled any amount without designating the type of the Tax or the Tax Period, the Authority shall have the right to allocate the amount or any part thereof according to the mechanism defined in the Implementing Regulation of the present Law.
3- In the event the Taxable Person settled an amount that exceeds the actual value of the Payable Tax, the Authority shall have the right to allocate the difference to a subsequent Tax Period, unless the Taxable Person requests the refund of said difference according to the provisions thereof.
4- In the event the Taxable Persons settles an amount that is less than the actual value of the Payable Tax, the provisions set forth in Chapter 4 of Chapter 3 hereof shall apply.
Chapter 4
Voluntary Disclosure
Article 10
1- In the event the Taxable Person finds out that the Tax Return he submitted to the Authority or the Tax Assessment sent thereto by the Authority is incorrect, in such a manner that the Payable Tax according to the Tax Law has been calculated at a value that is lesser than it should be, he should in such a case request the correction of this Tax Return by submitting a Voluntary Disclosure within the period defined under the Implementing Regulation of the present Law.
2- In the event the Taxpayer finds out that the Tax Refund application he submitted to the Authority is incorrect, in such a manner that the Refund Amount to which he was entitled according to the Tax Law has been calculated at a value that is higher than what it should be, he should in such case request the correction of this Tax Refund application by submitting a Voluntary Disclosure within the period defined under the Implementing Regulation of the present Law.
3- In the event the Taxable Person finds out that the Tax Return he submitted to the Authority or the Tax Assessment sent thereto by the Authority is incorrect, in such a manner that the Payable Tax according to the Tax Law has been calculated at a value that is higher than what it should be, he may in such a case request the correction of this Tax Return by submitting a Voluntary Disclosure.
4- In the event the Taxpayer finds out that the Tax Refund application he submitted to the Authority is incorrect, in such a manner that the Refundable Amount according to the Tax Law has been calculated at a value that is lesser than what it should be, he may in such a case request the correction of the Tax Refund application by submitting a Voluntary Disclosure.
Title 3
Tax Procedures
Chapter 1
Notification
Article 11- Notification Methods
1- The Authority shall notify the Person concerning any decisions or procedures to the address defined in the correspondences exchanged between the Authority and said Person.
2- The Authority shall notify the Taxable Person at the address defined in the Tax Declaration, unless the Authority is informed of the change of said address by the Taxable Person, his Legal Representative or his Agent.
3- In all cases, the Person shall be deemed to be duly notified of any decision and to have received any correspondences, whenever it is proven that the Authority has sent notifications or correspondences according to Clauses (1) and (2) hereof.
4- The Implementing Regulation of the present Law shall define the means through which notifications and correspondences shall be sent.
Chapter 2
Tax Agent
Article 12- Tax Agents Register
The Authority shall establish a Tax Agents Register. Every Tax Agent shall have a file in which anything related to the affairs of the practice of the profession shall be contained.
Article 13- Tax Agents Registration
No Person may practice the profession of Tax Agent in the State unless registered in the Register and licensed for his purpose by the Ministry of Economy and the competent local authority.
Article 14- Conditions for Registration in the Register
1- The following conditions shall be met by the Person who is registered in the Register:
a- He shall be of good conduct and behaviour, and not have been convicted to any felony or misdemeanour involving moral turpitude or dishonesty, even if he has been rehabilitated.
b- He shall have obtained an accredited educational qualification from one of the recognised universities or institutes, proving his specialisation and practical experience as defined in the Implementing Regulation of the present Law.
c- He shall be medically fit to perform the duties of his profession.
d- He shall hold a professional liability insurance policy.
2- The Tax Agent should notify the Authority of the period of suspension of the practice of his profession as Tax Agent in case of any obstacle preventing him therefrom. He shall have the right to apply for resuming his profession upon demise of said obstacle.
3- The Implementing Regulation of the present Law shall designate the procedures for the Tax Agent Registration in the Register, as well as his rights and duties toward the Authority and the Person.
Article 15- Appointment of the Tax Agent
1- The Person may appoint a Tax Agent to act in the name and on his behalf before the Authority with regard to his tax affairs without prejudice to the responsibility of said Person toward the Authority.
2- The Authority may not deal with any Tax Agent with regard to any Person in the event the latter informs the Authority that he agency relationship has ended or that the Tax Agent has been dismissed.
Article 16- The Person’s Records with the Tax Agent
1- The Tax Agent should, upon the request of the Authority, provide the latter with all information, documents, registers and data required for any Person he represents.
2- The Authority shall have the right to check the records of any person that are kept with his Tax Agent and may rely thereon for the purpose of the Tax Audit, even after the expiry of the agency relationship or the dismissal of the Tax Agent.
Chapter 3
Tax Audit
Article 17- The Right of the Authority to Perform Tax Audit
1- The Authority shall have the right to perform Tax Audit on any Person to verify the extent of his compliance with the provisions set forth in the present Law and the Tax Law.
2- The Authority shall have the right to perform Tax Audit at its headquarters or the place of work of the Person subject to Tax Audit, or at any other place where said Person practices the Business, stores the goods or keeps the registers.
3- In the event the Authority decided to perform the Audit at the place of work of the Person subject to the Audit, or at any other place where said Person practices the works, stores the goods or keeps the registers, the Authority shall notify said person at least (5) five days prior to the date on which the Tax Audit process is scheduled.
4- By way of exception from the provisions of Clause (3) of this Article, the Auditor shall have the right to enter any place where the Person subject to the Audit practices the Business, stores the goods or keeps the registers and it will be temporarily closed, as the case may be, with the aim of performing Tax Audit for a period of no more than (72) seventy two hours, with no prior notification in one of the following cases:
a- In the event the Authority has reasonable grounds to believe that the Person subject to the Tax Audit participates or is engaged in the Tax Evasion with regard to said Person or another Person.
b- In the event the Authority has reasonable grounds to believe that the non-temporary closing of the place where the Tax Audit is to be performed would result in the hindrance of the Tax Audit performance.
c- In the event the Person who is notified of the Tax Audit according to Clause (3) of the present Article prevented the Tax Auditor from entering the place where the Tax Audit is to be performed.
5- In all cases set forth in Clause (4) hereof, the Tax Auditor should obtain a prior written consent from the Director-General, in addition to an authorisation from the Public Prosecution in the event the place to be entered is a residence.
6- Places that are closed by virtue of the present Article should be reopened after (72) seventy-two hours, unless the Authority obtains from the Public Prosecution an authorisation to extend the closing period for a similar period after the expiry of the original (72) seventy-two hours period.
7- Criminal case may be only initiated upon the request of the Director-General.
8- The Implementing Regulation of the present Law shall define the necessary procedures related to the Tax Audit.
Article 18- The Right of the Authority to Access the Original Records or Copies Thereof during Tax Audit
The Tax Audit shall have the right, during the performance of the Tax Audit, to access the original records or copies thereof and to take samples of the goods, equipment or other assets from the places where the Person subject to Tax Audit practices his Business or which are in his possession and to seize the same according to the controls set forth under the Implementing Regulation of the present Law.
Article 19- Tax Audit Timing
The Tax Audit shall take place during the official working hours of the Authority. Said Audit may be exceptionally carried out outside these official working hours in cases of necessity, by virtue of a decision issued by the Director -General.
Article 20- Emergence of New Information after a Tax Audit
The Authority shall be entitled to inspect any matter that has been already audited, in case of emergence of new information that may affect the Tax Audit practical result, provided that the Tax Audit procedures apply to said inspection according to the provisions of the present Law and its Implementing Regulation.
Article 21- Cooperation during the Tax Audit
Any Person subject to Tax Audit, his Tax Agent or Legal Representative shall facilitate and offer any possible assistance to the Tax Auditor to enable him carry out his duties.
Article 22- Rights of the Person Subject to Tax Audit
The Person who is subject to Tax Audit shall have the right to:
1- Request the Tax Auditors to show their job identification cards.
2- Obtain a copy of the Tax Audit notification.
3- Attend the Tax Audit that takes place outside the Authority.
4- Obtain a copy of any original hard or soft documents that are seized or obtained by the Authority in the course of Tax Audit, as defined under the Implementing Regulation of the present Law.
Article 23- Notification of the Tax Audit Results
1- The Authority should notify the Person subject to Tax Audit of the final result thereof, within the period and according to the procedures defined under the Implementing Regulation of the present Law.
2- The Person subject to the Tax Audit shall be entitled to check and obtain the documents and data on which the Authority has based its assessment of Due Tax, according to the controls defined under the Implementing Regulation of the present Law.
Chapter 4
Tax and Administrative Penalties Assessment
Article 24- Tax Assessment
1- The Authority shall issue a Tax Assessment to determine the value of the Payable Tax and notify the same to the Taxable Person within (5) five working days as of the date of issuance thereof, in any of the following cases:
a- The Taxable Person fails to apply for registration within the time limit set forth in the Tax Law.
b- The Registrant fails to submit the Tax Return within the time limit set forth in the Tax Law.
c- The Registrant fails to settle the amount defined as the Payable Tax in the Tax Return submitted within the time limit set forth in the Tax Law.
d- The Taxable Person submits an incorrect Tax Return.
e- The Registrant fails to calculate the Tax on behalf of another Person while being obliged to do so according to the Tax Law.
f- There is a deficit in the Payable Tax as a result of Tax Evasion by the Person or as a result of a Tax Evasion in which such person is involved.
2- The Authority shall have the right to issue an estimated Tax Assessment should it have been impossible to determine the amount of Tax deemed to be a Payable Tax or the Refundable Tax has not been due to be refunded, as the case may be.
3- The Authority should amend the Tax Assessment that has been carried out in an estimated manner, based on the new information that emerged after the issuance thereof. The Authority should also notify the concerned Person of said amendments within (5) five working days as of the date thereof.
4- The Implementing Regulation of the present Law shall set the information or data to be included in the Tax Assessment.
Article 25- Assessment of the Administrative Penalties
1- The Authority should issue an Assessment of the Administrative Penalties of the Person and notify him thereof within (5) five working days in case any of the following violations is committed:
a- In case the Person practicing the Business fails to keep the required records and other information defined in the present Law and the Tax Law.
b- In case the Person practicing the Business fails to submit the data, records and documents related to the Tax in Arabic to the Authority upon request.
c- In case the Taxable Person fails to submit the registration application within the period defined under the Tax Law.
d- In case the Registrant fails to submit the Registration Cancellation Application within the period defined under the Tax Law.
e- In case the Registrant fails to notify the Authority of any event that requires the amendment of the information of his Tax Record kept with the Authority.
f- In case the Legal Representative of the Taxable Person fails to inform the Authority of his appointment as a Legal Representative within the defined periods, provided that the penalties are paid in this case from the own money of the Legal Representative.
g- In case the Legal Representative of the Taxable Person fails to submit the Tax Return within the defined time limits provided that the penalties are paid in this case from the own money of the Legal Representative.
h- In case the Registrant fails to submit the Tax Return within the time limit set forth under the Tax Law.
i- In case the Taxable Person fails to settle the Tax defined as the Payable Tax in the Tax Return that has been submitted or the Tax Assessment notified thereto within the period set forth under the Tax Law.
j- In case the Registrant submits an incorrect Tax Return.
k- In case the Person submits a Voluntary Disclosure with regard to errors in the Tax Return, Tax Assessment or Tax Refund Application by virtue of Clauses (1) and (2) of Article (10) hereof, before being notified that he will be subject to Tax Audit.
l- In case the Taxpayer fails to submit a Voluntary Disclosure with regard to errors in the Tax Return, Tax Assessment or Tax Refund Application by virtue of Clauses (1) and (2) of Article (10) hereof before being notified of the performance of a Tax Audit by the Authority.
m- In case the Person who practices the Business fails to facilitate the work of to the Tax Auditor, in violation of the provisions of Article (21) hereof.
n- In case the Registrant fails to calculate the Tax on behalf of another Person when the Registered Taxable Person is obliged to do so by virtue of the Tax Law.
o- Any other violation defined by virtue of a Cabinet Decision.
2- The Implementing Regulation of the present Law shall specify the data and information to be included in the Assessment of the Administrative Penalties.
3- The Cabinet shall issue a decision specifying the Administrative Penalties for each one of the violations listed in Clause (1) of the present Article, provided that the Administrative Penalty is no less than AED (500) five hundred for any violation and no more than triple the Tax concerning which an Assessment of the Administrative Penalties has been issued.
4- The imposition of any Administrative Penalty under the provisions of the present Law or any other Law shall not result in the exemption of any Person from the liability to settle the Due Tax according to the provisions of the present Law or the Tax Law.
Chapter 5
Penalties
Article 26- Tax Evasion Penalties
1- Without prejudice to any severer penalty provided for in any other Law, imprisonment and a penalty of no more than (5) five times the amount of the evaded Tax, or either one of said two sanctions shall be imposed on:
a- The Taxable Person who deliberately abstains from settling any Payable Tax or Administrative Penalties.
b- The Taxable Person who deliberately understates the actual value of his Business or who abstains from adding any related Business thereto with the purpose of not attaining the required registration limit.
c- The Person who imposes and collects amounts from his clients as a Tax without being registered.
d- The Person who deliberately submits wrong information and incorrect data to the Authority.
e- The Person who deliberately conceals or destroys documents or other materials that he is required to keep and submit to the Authority.
f- The Person who steals, misuses or causes the destruction of documents or other materials in the possession of the Authority.
g- The Person who bans or prevents the Authority’s employees from performing their duties.
h- The Person who deliberately decreases the Payable Tax through Tax Evasion or complicity in a Tax Evasion.
2- The imposition of any penalty under the provisions of the present Law or any other Law shall not result in the exemption of any Person from the liability to settle the Payable Tax or the Administrative Penalties according to the provisions of the present Law or the Tax Law.
3- The Competent Court shall apply the Tax Evasion penalties to any Person who is proven to have directly participated in or caused a Tax Evasion by virtue of Federal Law No. (3) of 1987.
4- Without prejudice to Clause (2) of the present Article, in case a Person is proven to have directly participated in or caused a Tax Evasion by virtue of Clause (3) of this Article, he shall be jointly and severally liable with the Person who helped him for the settlement of the Payable Tax and Administrative Penalties by virtue of the provisions of the present Law and any other Tax Law.
Title 4
Objection
Chapter 1
Application for Reconsideration
Article 27- Procedures of the Application for Reconsideration
1- Any Person shall have the right to submit an Application to the Authority for reconsideration of any decision issued by it with regard thereto, whether in whole or in part, provided that said Application is justified and is submitted within (20) twenty working days as of the date of his notification of said decision.
2- The Authority shall examine the reconsideration application that meets all the requirements and decide thereon by virtue of a justified decision within (20) twenty working days as of the date of receipt of such application. The Authority shall inform the applicant of its decision within five working days as of the issuance thereof.
Chapter 2
Objection Submitted to the Committee
Article 28- Tax Disputes Resolution Committee
1- One or more permanent committees shall be formed and named “Taxes Disputes Resolution Committee” under the chairmanship of one of the members of the judiciary and with the membership of two of the experts listed on the Register of Tax Experts, appointed by virtue of a decision issued by the Minister of Justice, in coordination with the Minister.
2- A Cabinet Decision shall be issued regarding the Committee’s bylaws, the remuneration of the members thereof and the procedures adopted by it.
Article 29- Competences of the Committee
The Committee shall have the competence to:
1- Decide on the objections submitted against the Authority’s decisions concerning the Reconsideration Applications
2- Decide on the Reconsideration Applications submitted to the Authority and concerning which the latter didn’t take a decision according to the provisions of the present Law.
3- Carry out any other competences entrusted thereto by the Cabinet.
Article 30- Procedures of Submission of Objections
1- The objection to the Authority’s decision concerning the reconsideration application shall be submitted within (20) twenty working days as of the date of notification thereof.
2- The objection submitted to the Committee shall be dismissed in the following cases:
a- In case the reconsideration application has not been submitted first to the Authority
b- In case the Tax and the Penalties subject-matter of the objection are not settled.
Article 31- The Committee’s Procedures
1- The Committee shall examine the objection submitted thereto and decide thereon within (20) twenty working days as of the date of receipt of the objection.
2- The Committee shall be entitled to extend the period to decide on the objection for no more than (20) twenty additional working days after the expiry of the original period set forth in Clause (1) of this Article, in the event it finds reasonable grounds for the purpose of deciding upon the objection.
3- The Committee shall notify the applicant for the objection of its decision within (5) five working days as of the issuance thereof.
4- The decision of the Committee with regard to the objection shall be considered final in case the total amount of the Due Tax and Administrative Penalties defined accordingly does not exceed AED (100 000) one hundred thousand.
5- In all cases, the tax disputes cases may not be brought before the competent court unless an objection is submitted first to the Committee.
Article 32- Execution of the Committees’ Decision
The final decisions issued by the Committee regarding the disputes whose value does not exceed AED (100 000) one hundred thousand shall be considered as writs of execution. However, the final decisions regarding the disputes whose value exceeds AED (100 000) one hundred thousand shall be considered as writs of execution only if not appealed before the competent court within a period of twenty working days as of the date of rejection of the objection. Said decisions shall be executed by the Execution Judge with the competent court according to the Civil Procedure Law applicable in the State.
Chapter 3
Appeal before the Courts
Article 33- Procedures of Appeal before the Courts
1- Without prejudice to the provisions of Article (32) hereof, the Authority and the Person may appeal the decision of the Committee before the competent court within (20) twenty working days as of the date of the notification of the appealing party of the Committee’s decision.
2- Decisions may be appealed before the competent court in one of the following cases:
a- Objection to the Committee’s decision, whether wholly or partially.
b- Non-issuance of a decision by the Committee with regard to the objection submitted thereto according to the provisions hereof.
Title 5
Refund and Collection of the Tax
Chapter 1
Tax Refund
Article 34- Tax Refund Application
The Taxpayer shall be entitled to apply for the refund of any Tax he already settled on condition that he is entitled thereto according to the Tax Law and it appears that the settled amount exceeded the Payable Tax and the Administrative Penalties, according to the procedures defined in the Implementing Regulation of the present Law.
Article 35- Tax Refund Procedures
1- The Authority shall perform an offset between the amount requested to be refunded and any other Payable Tax or Administrative Penalties due from the Taxpayer who applied for the Tax Refund, by virtue of the Tax Return or Tax Assessment issued by the Authority, before the refund of any amount related to a particular Tax.
2- The Authority shall be entitled to abstain from refunding the amounts set forth under Clause (1) hereof if it finds that there are other disputed payable tax amounts related to said Person or by virtue of a decision by the competent court.
3- The Authority shall refund the Tax by virtue of the present Article, according to the procedures and controls defined in the Implementing Decision of the present Law.
Chapter 2
Tax Collection
Article 36- Collection of the Payable Tax and the Administrative Penalties
In the Event the Taxable Person abstains from settling the Payable Tax or the Administrative Penalties within the periods set forth in the present Law and the Tax Law, the following procedures shall be taken:
1- The Authority shall send to the Taxable Person a notification to settle the Payable Tax and the Administrative Fines within (20) twenty working days as of the date of said notification.
2- In the event the Taxable Person abstains from settlement after notification by virtue of Clause (1) of this Article, the Director-General shall issue a decision to compel the Taxable Person to pay the Payable Tax and the Administrative Penalties. Said decision shall be notified within (5) five working days as of the issuance thereof, along with the Tax Assessment and the Administrative Penalties Assessment.
3- The decision of the Director-General concerning the Tax Assessment and Assessment of the Administrative Fines shall be deemed as a writ of execution for the purposes of execution by the Execution Judge with the competent court.
Chapter 3
Settlement and Collection of the Tax and Administrative Penalties in Special Cases
Article 37- Obligations of the Legal Representative
The Legal Representative shall continue to submit the necessary Tax Returns to the Authority on behalf of the Taxable Person.
Article 38- Responsibility of Settling the Tax in case of Partnership
In case of partnership of many Persons in a Business that does not enjoy an independent legal personality, each one thereof shall be jointly and severally liable toward the Authority for any Payable Tax and Administrative Penalty related to said Business.
Article 39- Settlement of the Tax and Administrative Penalties in Special Cases
1- The Payable Tax shall be settled in case of death as follows:
a- With regard to the Payable Tax owned by a natural person before the date of his death, said Tax shall be settled from the value of the estate’s elements or the income resulting therefrom before distribution to the heirs or legatees.
b- If it appears after the distribution of the estate that there is an outstanding Payable Tax, legal recourse should take place against the heirs and legatees, in proportion with the share of each one thereof of the estate, for the settlement of the Payable Tax, unless a clearance certificate is issued by the Authority to the Representative of the Estate or any of the heirs.
2- The Payable Tax and the Administrative Penalties imposed on the Taxable Person lacking capacity, is absent or lost, or whose residence is unknown and the like, shall be settled by the Legal Representative thereof, from the money and properties of the Taxable Person.
3- The Payable Tax and the Administrative Penalties imposed on the Taxable Person who incapacitated shall be settled by the Legal Representative thereof, from the money and properties of the Taxable Person.
Article 40- Settlement of the Tax in case of Bankruptcy
1- The appointed Trustee in Bankruptcy shall communicate with the Authority to notify him of the Due Tax or of its wish to carry out Tax Audit for the defined Tax Period(s).
2- The Authority shall notify the Trustee of the amount of the Due Tax or the Tax Audit within (20) twenty working days as of the date on which it receives the notification from the Trustee.
3- The Trustee may file a grievance, objection and appeal with regard to the Authority’s Assessment or the settlement of the Due Tax.
4- The Implementing Regulation shall prescribe the procedures of communication with the Authority, grievance, objection and settlement of the Due Tax.
Title 6
General Provisions
Chapter 1
Confidentiality
Article 41- Professional Confidentiality
1- The Authority’s employees shall undertake not to disclose any information they accessed in their professional capacity or as a result thereof during their performance of their duties, except in the cases defined or identified by virtue of the Implementing Regulation of the present Law.
2- In all cases set forth in Clause (1) of this Article, no information shall be disclosed unless with the approval of the employees who are authorised by the Board of Directors of the Authority, by virtue of the Implementing Regulation of the present Law.
3- The Authority’s employees shall undertake to maintain professional confidentiality even after the end of their service, and shall abstain from disclosing any information they accessed in their professional capacity or as a result thereof, unless upon the request of the judicial authorities and as defined under the Implementing Regulation of the present Law.
4- Whoever obtains information shall undertake, by virtue of the provisions hereof, not to disclose or use said information for any purpose other than the one for which said information have been originally obtained, without prejudice to the liability resulting therefrom when needed.
5- The Board of Directors of the Authority shall issue the regulations and instructions related to the organisation of the internal procedures to protect the confidentiality of information within the Authority, as well as the obligations of the Tax Agent to this effect.
Chapter 2
Time Limits and Limitation Periods
Article 42- Statute of Limitation
1- Except in cases of proven Tax Evasion or abstention from tax registration, the Authority may not carry out any Tax Assessment after the lapse of (5) five years as of the end of the related Tax Period.
2- In case of proven Tax Evasion, the Authority may carry out Tax Assessment within (15) fifteen years as of the end of the Tax Period during which the Tax Evasion occurred.
3- In case of abstention from tax registration, the Authority may carry out Tax Assessment within (15) fifteen years as of the date on which the Taxable Person should have performed the Tax Registration.
Article 43- The Authority’s Right to Claim
The Payable Tax and the Administrative Penalties notified to the Taxable Person shall not be barred by limitation and the Authority may claim same at any time.
Article 44- Time Limit for Tax Obligations
Unless a specific period is set for the performance of any liability or any other procedure by virtue of the present Law or the Tax Law, the Authority shall grant the Taxable Person a period to this effect that is commensurate with the nature of the liability or procedure, provided that this period is no less than (5) five working days and no more than (40) forty working days, as of the date of the incident giving rise to the obligation or the performance of the procedure.
Article 45- Calculation of the Time Limits
In all cases, upon calculation of the time periods, the following rules shall be taken into consideration:
1- The day of notification or day of occurrence of the incident giving rise to the limit shall not be calculated as part of the latter.
2- In the event the last day of the time-limit coincides with a public holiday, said period shall be extended to the first working day following said public holiday.
Article 46- Reduction of or Exemption from the Administrative Penalties
In the event the Authority imposed an Administrative Penalty on any Person for violating the provisions of the present Law or of the Tax Law, the Authority shall be entitled to reduce the Administrative Penalty or exempt him therefrom in case he submits proofs that justify the reason for his non-compliance, according to the controls defined in the Implementing Regulation of the present Law.
Article 47- Calendar
The time limits and due dates provided for in this Law and the Tax Law shall be calculated based on the Gregorian calendar.
Chapter 3
Closing Provisions
Article 48- Proving the Accuracy of the Data
The Taxable Person shall be responsible for proving the accuracy of the Tax Return and the Authority shall be responsible for proving the cases of Tax Evasion.
Article 49- Conflict of Interest
The employees of the Authority shall be prohibited from performing or participating in any Tax Procedures related to any Person in the following cases:
1- If there is a kinship up to the fourth degree between the employee and said Person.
2- If there is a common interest between the employee and said Person or one of his relatives up to the third degree.
3- If the Director-General decides that the employee shall not carry out any Tax Procedure related to said Person due to any case of conflict of interest.
Article 50- Judicial Officers
The Director-General and the Tax Auditors who are appointed by virtue of a decision issued by the Minister of Justice in agreement with the Minister shall have the capacity of Judicial Officers in recording the violations of the provisions of the present Law, the Tax law or the implementing decisions.
Article 51- The Fees of the Authority
The due fees shall be defined by virtue of a cabinet decision based on the proposal of the Minister, pursuant to the provisions of the present Law or the implementing decisions thereof.
Article 52- Abrogation of Contradicting Provisions
Any provision contrary to or inconsistent with the provisions of this Law shall be abrogated.
Article 53- Implementing Regulation
The Council of Ministers shall issue, based on the proposal of the Minister, the Implementing Regulation of the present Law, within six months as of the date of issuance thereof.
Article 54- Publication and Enforcement of the Law
The present Law shall be published in the Official Gazette and shall enter into force (30) days as of the date of publication thereof.
Issued at the Presidential Palace in Abu Dhabi
On 11 June 2017
Corresponding to 16 Ramadan 1438 H
Khalifa bin Zayed Al Nahyan
President of the United Arab Emirates
The present Federal Law shall be published in the Official Gazette, issue no. 616 (Annex), p. 9.

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