With the issuance of Federal Tax Authority Decision No. 1 of 2025, the UAE Federal Tax Authority outlined specific scenarios for extending the deadline for taxpayers to file a UAE Tax Assessment Review or Reconsideration Request under certain situations. The decision, effective as of March 1st, 2025, is designed to ease the tax burden on taxpayers facing unexpected compliance challenges under UAE tax laws.
An Overview of the UAE Tax Assessment Review Mechanism
The UAE Tax assessment review is a process enabling taxpayers to dispute incorrect tax assessments and related administrative penalties issued by the UAE FTA. The review is conducted by independent UAE FTA officials, who are not a part of the original audit, to ensure fair results. The UAE FTA conducts a review based on the evidence or documents submitted at the time of the initial audit- new evidence need not be submitted.
Common Grounds for UAE FTA Tax Assessment Review
UAE Tax Assessment Reviews are granted only when the taxpayer can prove certain valid conditions, such as:
- Tax or penalty computation errors
- Incorrect application of the UAE Law
- Irregular audit procedures
- Expired Audit window
- Lack of Audit Notification
- Omission of Legal Evidence
- Misclassification of Transactions
- Reliance on Faulty External Data
Tip: The review process is limited to the documentation provided during the original audit. If a taxpayer wishes to submit new information or evidence, a reconsideration request should be filed instead. Working with a trusted UAE FTA Tax agent such as Jaxa helps to guide the process effectively.
Tax Review Request Limitations Under UAE FTA Guidelines
UAE Tax Review assessments are not qualified if:
- A prior reconsideration request has been provided concerning the same matter.
- Taxpayers are providing new documents of evidence that were not included in the initial audit.
Steps to Submit a Tax Assessment Review to the UAE FTA
Once eligibility is confirmed, the following process should be followed to submit a Tax Assessment Review request to the UAE FTA:
- Deadline for submission: The taxpayer must submit the review request within 40 business days of receiving the UAE FTA assessment.
- Requirement: The review request application must state the reason. Must attach documents shared during the initial audit. No new evidence must be provided.
- Submission Method: The completed review application must be submitted via email to:AssessmentReview@tax.gov.ae
Overview of Request Reconsideration Mechanism in UAE
A UAE reconsideration request may be filed by the taxpayers who seek to dispute both tax assessment and administrative penalties without initiating a UAE tax assessment review process.
Eligibility Criteria for Filing a Reconsideration Request in the UAE
The taxpayer may file a UAE reconsideration request only upon receiving a UAE tax assessment review request and:
- Taxpayers disagree with the outcome of the review.
- UAE FTA failed to issue a decision within the 40 business day deadline or an extended period if notified for a Tax assessement review.
Note: Under the reconsideration process, taxpayers are permitted to submit new documents or evidence that were not presented during the original audit. However, submitting a reconsideration request first, the person will forego the option to request a tax assessment review
Valid Grounds for Requesting a Deadline Extension under UAE FTA Guidelines.
An extension for the deadline shall be approved by the UAE FTA if proper evidence is provided for the delay due to the following reasons:-
- Severe illness or accident affecting the authorized signatory.
- Death of the signatory, legal representative, or a first/second-degree family member.
- Unexpected business disruptions beyond taxpayer control
- Important records are destroyed due to a disaster.
- Technical failure of FTA systems preventing submission of the request
- Disruption of records due to a sudden IT system changeover.
- Inability to access additional documents sought by the UAE FTA-requested documents within the legal time limit.
- Any force majeure event, at the Authority’s discretion.
Circumstances That Do Not Qualify for Deadline Extensions in the UAE
The UAE FTA will reject extension requests under the following conditions:
- Ignorance of UAE tax laws and regulations.
- Negligence or delay from a third party or tax agent or legal representative.
- Failure to file on time due to the perceived complexity of the assessment
- The applicant is prioritizing day-to-day business over statutory deadlines.
UAE FTA Gives Taxpayers a Second Chance- Deadline Extension
Under the UAE Federal Tax Authority’s procedures, taxpayers must submit a UAE Tax Assessment Review or Reconsideration Request within 40 business days of receiving notice of the assessment and associated penalties.
Under UAE FTA Decision No. 1 of 2025, late submissions may be permitted if the taxpayer can demonstrate valid reasons. The UAE FTA has identified specific scenarios where extensions will be considered.
Don’t Let Delays Derail Your UAE Tax Compliance: Jaxa Auditor is Here to Help.
This decision serves as a gentle reminder: Stay compliant and stay prepared, delays may happen. It is an urgent requirement for UAE businesses to keep accurate financial records and ensure timely compliance. Partnering with a UAE-certified FTA tax agent and a leading accounting and auditing firm in Dubai and the UAE helps taxpayers stay on track, helping you to prepare accurate financial records, timely submission, and complete guidance throughout the extension request process.
Strengthen Your Compliance Game in the UAE: Jaxa Auditors Has Your Back.
It is overwhelming to manage UAE FTA procedures, but with the guidance of immensely qualified JAXA auditors, you would be in expert hands. As a recognized name in the UAE for auditing, accounting, and taxation excellence, as well as a UAE FTA tax agent, Jaxa Chartered Accountants specializes in guiding diverse clientele through Tax Assessment and Reconsideration Requests in the UAE. Our certified corporate tax consultant in Dubai, Abu Dhabi, and the UAE offers valuable insights into ensuring your documents are complete, helps to present the case in a well-structured way, and ensures compliance with UAE tax regulations.
Our Key Deliverables
- Guidance from UAE FTA-Registered Tax Professionals
- Local expertise. Global standards.
- 100% UAE FTA compliance
- Precise and compliance records.
- Quick eligibility checks for deadline relief.
Stay compliant, and stay alert, your smartest move is one call to Jaxa away. Jaxa Auditors is your shortcut to stress-free tax compliance in the UAE.
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