UAE Unveils Fee Refunds for Tax Service Charges Starting August 1!

Under ‘private clarification,’ companies can submit a request to obtain additional details on one or more tax issues from the FTA

Effective August 1, the Federal Tax Authority (FTA) announced that fees paid for “private clarification” of tax issues will be refunded in certain circumstances if no clarification is provided.

Under the “private clarification” service, companies could request additional details on one or multiple tax issues from the FTA, with fees required starting June 1, 2023. If the clarification is not issued, the full fee will be refunded for requests covering one or more taxes. For requests involving multiple taxes, if clarification is provided for only one, a partial refund will be given based on the fee difference between one tax and multiple taxes.

Refund Scenarios

According to Federal Tax Authority Decision No. 5 of 2024, issued on July 19, refunds will be granted in the following cases:

• If the request relates to a subject currently under review for tax legislation amendments with the Ministry of Finance.
• If the request is made by someone not registered for Corporate Tax and does not concern tax registration.
• If the applicant is under a tax audit by the Authority at the time of the request.
• If the request is withdrawn within two business days of submission.
• If the request pertains to procedures resulting from an Authority decision.
• If the request duplicates another submitted by the same applicant with the same subject and documents.