UAE: Ministry announces new decision on tax procedures

The UAE's Ministry of Finance (MoF) on Saturday announced the issuance of a new Cabinet decision that amends some key aspects of tax procedures — including payments, refunds, obligations in cases of bankruptcy, among others.

With corporate tax coming into effect in June this year, it is crucial to continuously update all relevant legislation and provide necessary guidance on how the UAE tax system applies, the MoF said, adding that these measures are part of efforts to ensure compliance.

The new Cabinet decision covers tax payment and refund procedures, and the obligations of a trustee in cases of bankruptcy.

It stipulates the accounting records and commercial books to be maintained as well as the period and manner of record-keeping.

The decision also includes updates related to the conditions and controls for registering a tax agent, the procedures for de-listing an agent.

Other key updates include procedures related to reconciliation in tax evasion crimes and the terms and conditions for such reconciliations.

This new decision — effective from August 1 — repeals and replaces the existing executive regulation on tax procedures and aligns definitions, procedures, and processes, among other matters, with the New Tax Procedures Law, which came into force on March 1.

The ministry noted, however, that Clause 2 of Article (12) — outlining the conditions for juridical persons who wish to be listed in the Register of Tax Agents — will come into effect on December 1.