UAE – Amendments to the Executive Regulation of the Tax Procedures Law now in force
As of 1 April 2026, amendments to the Executive Regulation of the UAE Tax Procedures Law have come into force, impacting key areas such as record-keeping, voluntary disclosures and tax audits. The new provisions strengthen the procedural framework and introduce more structured compliance requirements.
Key changes
One of the most significant updates concerns record-keeping obligations. While the standard retention period remains five years, it may be extended to seven years where a tax refund application is pending. Businesses should therefore reassess their document retention policies.
The treatment of incorrect refund applications has been clarified and a materiality threshold for voluntary disclosure related to refund errors has been introduced. Errors exceeding AED 10,000 require a voluntary disclosure to be submitted within 20 business days from the date when the Taxable Person became aware of the error, while smaller discrepancies can be corrected in the subsequent tax return.
Regarding tax audits, the Federal Tax Authority (FTA) has been granted enhanced powers, including the ability to extend the retention period of seized documents or assets. This requires greater attention to documentation management and audit preparedness.
Finally, terminology has been updated to replace “tax refund” with “credit balance refund”. The timelines for decision-making and repayment remain unchanged: the FTA must issue a decision within 20 business days of the request and initiate payment within 5 business days of approval.
Implications for businesses
In light of the new rules now in force, businesses operating in the UAE should:
- review and update document retention policies
- strengthen internal processes for identifying and managing tax errors
- ensure readiness for more structured tax audits
A timely assessment of the impact and the adjustment of internal processes are essential to ensure full compliance with the new regulatory framework.