The UAE Ministry of Finance has issued amendments to the Executive Regulations on Tax Procedures, effective from 1 April 2026. These changes clarify voluntary disclosure processes, extend record retention for certain cases, and update confidentiality and refund rules.
Key points
Record retention (ordinarily, 5 years) is extended by an additional two years for periods in which refund claims have been submitted before the statute of limitations expires, where no decision has been issued by the FTA.
The period for preserving or seizing documents and assets by the FTA can now be extended at the discretion of the FTA (subject to notifying the taxpayer, where possible). The new regulations do not establish a maximum extension period.
The FTA may disclose taxpayer information to another governmental entity if there is an agreement in place with the FTA which ensures confidentiality and protection of data, specifies the permitted use of such data and procedures to be followed where data is subsequently disclosed.
For overstated refund applications due to an incorrect tax return or tax assessment, amounts exceeding AED 10,000 should be corrected via submission of a voluntary disclosure within 20 days, or if less than AED 10,000, via the next tax return or if no future tax return is available, through a voluntary disclosure.
Refund procedures specifically refer to “credit balance refunds” as distinguished from a “tax refund” more generally. The procedures from a practical standpoint otherwise remain unchanged.
