This blog explores the second part of the UAE’s Tax Procedures framework. If you’ve ever wondered what your rights and obligations are when it comes to tax audits, objections, or disputes, this breakdown will guide you through:
- What happens after an audit or penalty is issued
- Your rights to object, appeal, and request reconsideration
- The legal route to challenge tax assessments
- Final avenues for resolution including courts and tribunals
By the end, you’ll understand how the UAE tax system balances enforcement with fairness — and how taxpayers can raise concerns legally, without fear.
Preface
Once a tax audit is completed or a tax penalty is assessed, many businesses think, “Well, that’s the end of the road.” But that’s not the case in the UAE. The tax law has built-in mechanisms for review, objection, and appeal — allowing taxpayers to dispute decisions that they believe are incorrect or unfair.
However, these rights come with specific rules, deadlines, and formats. And understanding those is key to making sure your voice is heard — and heard on time.
This blog simplifies that legal framework.
Reconsideration Requests
Let’s say the FTA issues a decision or imposes a penalty, and you believe it’s based on wrong facts or an incorrect interpretation of law. You have a right to file a request for reconsideration.
But here’s the catch — it must be:
- Filed within 40 business days of receiving the decision
- Submitted in Arabic
- Accompanied by supporting evidence and reasons
Once your request is submitted, the authority will review and issue a decision within 40 business days. You’ll receive a written notification of the outcome.
💡 This is your first shot at challenging a decision — don’t miss the window, and don’t file casually. It’s a legal move, so treat it with preparation.
Taxpayer’s Right of Objection
If you’re still unhappy with the outcome — or if the FTA doesn’t act on your reconsideration request — you have the legal right to take it up with the Tax Disputes Resolution Committee (TDRC).
Here’s what you need to know:
- You must submit your objection within 40 business days
- And yes, again — it must be in Arabic
- All supporting evidence should be enclosed
- You must pay the tax amount due before filing the objection (unless the objection is only about administrative penalties)
The Committee will then decide whether to accept the objection based on its form and content. If accepted, the process continues.
This is where the matter gets formally legal. So, while it’s still an administrative remedy, it requires full accuracy and compliance with procedural law.
Decisions of the Tax Disputes Resolution Committee
Once the objection is accepted, the TDRC takes over.
Their role is to:
- Review the matter independently
- Ensure both sides (taxpayer and FTA) are heard
- Issue a decision within 60 business days (extendable once for another 60 business days)
The decision is then sent to both parties.
Depending on the size and scope of the dispute, the Committee’s ruling can either:
- End the matter, or
- Be subject to further challenge before courts (if the tax amount exceeds AED 100,000 and either party wants to escalate)
So yes, while the Committee plays a powerful role, the system still allows for judicial oversight beyond that.
Final Stage of Objection
What if you’re still not satisfied with the Committee’s decision?
The law gives you one more option — judicial review.
You (or the FTA) can escalate the matter to:
- The Federal Primary Court, and further to
- The Court of Appeals, and finally
- The Court of Cassation
However, there are thresholds:
- Only objections involving more than AED 100,000 can be appealed in court
- You must file the case within 40 business days of the Committee’s decision
This stage is formal litigation — which means lawyers, court fees, and procedural compliance. But it’s also the final legal route for resolving tax disputes.
Execution of Decisions Issued by the Competent Courts
Once a court delivers a final decision — it’s binding.
That decision is:
- Executed like any other judicial ruling in the UAE
- Enforceable by the FTA through its normal legal mechanisms
- Applicable to both parties, whether taxpayer or authority
There’s no going back after this point. The final judgment concludes the matter in full, and the FTA can take steps to recover dues, issue refunds, or adjust tax positions based on the outcome.
Prescription Period (Limitation Period)
You might ask — is there a time limit after which the tax authority can no longer act?
Yes. The UAE tax law defines prescription periods (similar to limitation periods in other legal systems). These apply to different actions:
- General rule: The authority cannot conduct an assessment or issue penalties after five years from the end of the relevant tax period
- Exception for voluntary disclosures: If you submit one in the 5th year, the authority has one extra year to act
- For tax evasion: The limit is extended to 15 years
- Where a tax audit notice was issued in time: The authority can complete the audit beyond five years
- In case of court litigation: Periods pause and resume based on the judicial timeline
So, while there is a statutory limit, it’s not a blanket deadline. There are extensions and exceptions — depending on the nature of the case.
Final Thoughts
The UAE’s corporate tax framework is not just about assessments, returns, and audits. It’s also about fairness, accountability, and giving businesses the right to challenge decisions that don’t seem just or accurate.
If there’s one message in this second part of the Tax Procedures law, it’s this:
The system listens — but you have to speak up the right way, and at the right time.
Here’s a quick recap of what responsible businesses should do:
- File reconsideration requests within 40 business days, in Arabic
- Prepare well-documented objections to the TDRC when necessary
- Respect timelines and evidence rules — the format is as important as the content
- Know your limits — not every dispute qualifies for court review
- Understand that final judgments are binding, and enforcement will follow
- And lastly, track the prescription periods closely — because even valid objections can get dismissed if you miss the deadline
With a well-defined process and multiple avenues of appeal, the UAE tax system offers clarity and fairness — provided you stay proactive and informed.
