UAE Announces 2026 Tax Procedure Amendments

The UAE Ministry of Finance has announced a new Federal Decree-Law amending the country’s tax procedures, introducing clearer rules for refunding credit balances and reinforcing transparency and financial fairness ahead of the law’s implementation on January 1, 2026. 

In its statement, the ministry confirmed the issuance of Federal Decree-Law No. (17) of 2025 amending provisions of Federal Decree-Law No. (28) of 2022, noting that the changes support the UAE’s efforts to enhance the efficiency of its tax system and strengthen principles of clarity and fairness in tax administration.

The amendments establish a defined timeframe for taxpayers to request refunds of credit balances, allowing up to five years from the end of the relevant tax period to submit refund claims or use the balance to settle tax obligations. The updated regulations also provide additional flexibility, enabling taxpayers to request refunds even if the credit arises after the five-year period or during the final ninety days of it, ensuring rights are protected and financial certainty is maintained.

The revised law broadens the statute-of-limitations framework by allowing the Federal Tax Authority to conduct tax audits or issue assessments after the standard limitation period in specific circumstances, such as when refund requests are submitted during the final year of the limitation period. This approach is designed to balance the protection of taxpayer rights with the state’s responsibility to collect outstanding dues.

The decree-law also authorizes the Federal Tax Authority to issue binding guidance to taxpayers and to the Authority itself, clarifying how tax regulations apply to various transactions. This measure aims to unify interpretation, reduce inconsistency, and improve the practical application of the law across different cases.

Transitional provisions allow taxpayers with credit balances whose five-year deadline expired before January 1, 2026, or will expire within one year after that date, to submit refund requests within one year from the beginning of 2026. They may also file a voluntary disclosure within two years of submitting the refund request if the Authority has not yet issued a decision.

The Ministry of Finance stated that these amendments reflect the UAE’s ongoing commitment to aligning its financial policies with global best practices and to strengthening trust and transparency in the tax environment. The changes are expected to improve the efficiency of the tax system, ease administrative burdens for businesses, enhance the investment climate, support the sustainability of public revenues, and contribute to long-term economic growth.