UAE Federal Tax Authority Offers Refund of Tax Service Fees
The UAE Federal Tax Authority (FTA) has implemented measures to boost the nation's competitive edge and make it a more attractive hub for businesses. Among these developments is the introduction of Resolution No. 5 of 2024 regarding the Refund of Fees for Private Clarification Requests, effective August 1st, 2024.
This Resolution establishes a refund policy for those who pay for the FTA's private clarification service on tax matters. Since its inception on June 1st, 2023, this service has allowed companies to seek additional details and information about tax regulations, charging a fee for these inquiries.
Under the new Resolution, the FTA has specified the conditions for fee refunds associated with private clarification requests on tax matters. A full refund will be issued if the clarification pertains to one tax and no response is provided by the FTA. In cases where the request covers multiple taxes and the FTA fails to provide any clarification, the applicant will also receive a full refund. If the FTA clarifies only one of the multiple taxes queried, they will refund the difference between the fee charged for multiple taxes and the fee for a single tax.
Additional situations where refunds might be applicable include scenarios where the applicant withdraws their request within two business days of submission or if the request is made by an entity not registered for tax where the query does not relate to tax registration. Refunds may also be issued if the applicant is undergoing a tax audit by the FTA at the time of the request, if the request pertains to actions required following an FTA decision, if the request duplicates another identical request that the FTA is already processing, or if the clarification sought is concerning a matter that is under review for potential legislative changes in coordination with the Ministry of Finance.
In conjunction with these guidelines, the FTA has issued a reminder to legal entities with licenses issued in any June to apply for corporate tax registration by August 31, 2024. Compliance with this deadline is crucial to avoid potential administrative penalties. Entities can find detailed information about these deadlines, as well as other decisions and clarifications, on the FTA's website. This proactive approach by the FTA reflects its commitment to transparency and its support for businesses in navigating the tax landscape efficiently.