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In a significant move to enhance tax compliance and administration, the UAE Federal Tax Authority (FTA) has introduced new provisions for extending deadlines related to Tax Assessment Review Requests and Requests for Reconsideration. Decision No. 1 of 2025 outlines specific conditions under which extensions may be granted, offering relief to taxpayers facing genuine hardships. The decision ensures flexibility without compromising regulatory standards and will take effect from March 1, 2025.
This article explores the eligibility criteria, cases where extensions are not granted, and the overall impact of the decision.
Understanding Tax Assessment Review in the UAE
Under Federal Decree-Law No. (28) of 2022 on Tax Procedures, a taxpayer has the right to request a review of a tax assessment or associated administrative fines issued by the FTA. This request must be submitted within 40 business days of receiving the assessment. However, certain circumstances may prevent timely submission, necessitating an extension of deadlines.
Cases Eligible for Deadline Extensions
The FTA recognizes that unforeseen and uncontrollable circumstances may prevent taxpayers from meeting statutory deadlines. As per Decision No. 1 of 2025, the following situations qualify for deadline extensions:
- Serious illness or an accident affecting the authorized signatory.
- Death of the authorized signatory, legal representative, or an immediate family member (of first or second-degree).
- Temporary business disruptions beyond the taxpayer’s control.
- Damage to business records due to natural disasters or accidents.
- System malfunctions within the FTA’s digital platforms.
- Loss of business records due to system upgrades or transitions.
- Delays in obtaining additional documents as required by the FTA.
- Any other force majeure event determined by the FTA.
Taxpayers seeking an extension must provide documentary evidence supporting their claim. The FTA will assess each request based on its merits, ensuring fairness and compliance.
Cases Ineligible for Extensions
While the FTA aims to accommodate taxpayers in exceptional cases, certain situations do not warrant deadline extensions. These include:
- Lack of awareness about tax obligations.
- Negligence by third parties, such as tax agents or legal representatives.
- Complexity of tax matters causing delays in submission.
- Business workload preventing timely filing of the request.
Conclusion
The introduction of deadline extensions for Tax Assessment Review Requests reflects the UAE’s commitment to balancing compliance with taxpayer relief. However, taxpayers must remain vigilant and ensure timely compliance to avoid unnecessary complications.
Disclaimer: Content posted is for informational and knowledge sharing purposes only, and is not intended to be a substitute for professional advice related to tax, finance or accounting. The view/interpretation of the publisher is based on the available Law, guidelines and information. Each reader should take due professional care before you act after reading the contents of that article/post. No warranty whatsoever is made that any of the articles are accurate and is not intended to provide, and should not be relied on for tax or accounting advice.
