Resolution No. 1 of 2025 of the Federal Tax Authority effective the first of March 2025

The Federal Tax Authority of the United Arab Emirates issued Resolution No. 1 of 2025 dated February 17, 2025 effective March 2025

During the previous period, businesses and taxpayers faced tax challenges resulting from the delay in submitting an application for reconsideration of the tax assessments issued by the Federal Authority, which results in the loss of the taxpayer's right to object or appeal against the decisions of the authority issued on it, as the Tax Procedure Law states that companies issued a tax assessment resulting in amounts due to be paid to the authority may object to the decisions of the authority in several stages, as follows: :-

The first stage is to object to the federal tax authority by requesting a review or a request for a review of a tax assessment within 40 days from the date of notification of the decision

The second stage is to object to the dispute resolution authority within 40 days from the date of notification of the authority's response or non-response within the legal deadline with the condition of paying the full original tax and submitting a request for reconsideration of the legal dates

The third stage is the appeal to the courts within 40 days from the date of the dispute resolution committee's response

During the previous period from the beginning of the application of tax laws and the beginning of issuing assessments through the authority for companies, many taxpayers fall into violations as a result of exceptional circumstances or as a result of ignorance of the law and its provisions, the federal authority issues a tax assessment based on the company's documents, then the company is notified, and the company does not submit requests for reconsideration, which, as we have already explained, is the first stage of the appeal procedures against the authority's decisions during the specified period, which is 40 days from the date of notifying the authority

For these reasons, the authority issued Resolution No. 1 of 2025 on the possibility of extending the legal period of objection, which is 40 days from the date of notification of the authority's decision in specific cases, as follows :-

A-an accident or serious illness of the person authorized to sign

B-the death of the person authorized to sign, including the legal representative

Or a member of his family ( first or second degree)

C- Business disruption The timer is out of a person's control.

D-Damage to records The result of a disaster.

E-Existence General malfunction of the authority's systems And Sudden interruption of business or business records due to the installation of a system New for computer

G- The authority's request for additional documents from the taxpayer can be proved

Inability to obtain it within the legally prescribed dates

H-force majeure circumstances are estimated

The authority's decision clarified the following cases in which the authority will have the right to reject the request for extension of the period of acceptance of the request for reconsideration and the request for tax assessment, which are as follows :-

A- The taxpayer's ignorance of his obligations

B- The delay was caused by the default of a third party on which the payer relied

Tax as a tax agent or legal representative

If you have been signed a tax assessment by the authority and for one of the reasons mentioned in the decision you have delayed submitting a request for revision or a request to review the tax assessment, contact us to help you exit security and qualify you to submit a request for reconsideration again