The UAE Ministry of Finance has announced important amendments to the Executive Regulations on Tax Procedures, which came into effect on 1 April 2026. These updates align the regulations with the recent changes to the Federal Decree-Law on Tax Procedures (effective 1 January 2026). They are designed to enhance transparency, strengthen taxpayer compliance, maintain the accuracy and integrity of tax processes, and continue to protect taxpayer rights.
The Federal Tax Authority (FTA) continues to play a central role in administering these rules across all federal taxes, including Corporate Tax and VAT. Businesses and taxpayers in the UAE should take note of the following key updates to ensure full compliance.
1. Revised Rules on Disclosure of Information
The amendments refine the mechanisms for disclosing taxpayer information to competent government authorities. They reaffirm strict data confidentiality protections and clearly define the scope and limitations on how such information can be used. This change supports greater transparency while safeguarding sensitive taxpayer data.
2. Clarified Procedures for Voluntary Disclosures
Procedures for submitting voluntary disclosures have been updated to bring them fully in line with the amended Tax Procedures Law. Taxpayers can now follow clearer, more streamlined steps when voluntarily correcting tax positions or reporting inaccuracies, encouraging proactive compliance with FTA requirements.
3. Updated Refund Procedures
Refund rules have been clarified. Credit balances in favour of a taxpayer may be refunded through the formal refund process, subject to offset against any outstanding tax liabilities where applicable.
For VAT, refund claims must generally be submitted within five years from the end of the relevant tax period. These updates provide greater clarity and certainty for businesses seeking refunds from the Federal Tax Authority.
4. Extended Record-Keeping and Retention Requirements
The record retention period has been extended by two years in specific cases. This applies to tax periods linked to a refund claim that was submitted before the statute of limitations expired, where the FTA has not yet issued a determination. Businesses must ensure they retain relevant records for longer where refunds are involved.
5. Extended Powers for Tax Audits and Examinations
The regulations now allow for extensions to the period during which the FTA may preserve or seize documents or assets. This gives the Authority additional flexibility during tax audits and examinations while ensuring procedural fairness.
These amendments form part of the UAE’s ongoing efforts to modernise its tax framework, align procedures across different taxes, and create a more predictable compliance environment for businesses operating in the country.
What This Means for Businesses in the UAE
The new rules place greater emphasis on accurate record-keeping, timely voluntary disclosures, and proper management of refund claims. Failure to comply with the updated procedures could result in delays to refunds, extended audit periods, or penalties under the unified administrative penalty regime.
For multinational companies, free-zone entities, and local SMEs alike, these changes underscore the importance of robust tax governance. Reviewing internal processes now will help avoid compliance gaps as the FTA continues its risk-based audit approach.
FAQs on the New UAE Tax Procedures Regulations (Effective 1 April 2026)
Q1: When do the new tax procedures regulations take effect?
The amendments to the Executive Regulations on Tax Procedures came into force on 1 April 2026
Q2: Who do these changes apply to?
The updated regulations apply to all taxpayers registered with the Federal Tax Authority (FTA), including businesses subject to Corporate Tax, VAT, and other federal taxes.
Q3: What has changed regarding voluntary disclosures?
The procedures for submitting voluntary disclosures have been clarified and aligned with the amended Tax Procedures Law, making it easier for taxpayers to correct positions proactively.
Consult with the Best Tax Consultants in the UAE
At Tax Gian, we specialise in UAE tax compliance and advisory services. Our expert team of tax consultants in the UAE can help you navigate the new Tax Procedures Regulations, prepare robust voluntary disclosures, optimise refund claims, strengthen record-keeping systems, and prepare for FTA audits with confidence.
Whether you need a compliance health-check, tailored training for your finance team, or ongoing support to align with FTA requirements, Tax Gian delivers practical, proactive solutions that protect your business and minimise risk.
Contact Tax Gian today for a confidential consultation and let us help you turn these regulatory changes into a competitive advantage. Stay compliant. Stay ahead.
