The UAE Ministry of Finance today (July 29) announced significant changes on tax procedures and penalties through the issuance of Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures (New Tax Procedures Law).
The cabinet decision repeals and replaces the existing Executive Regulation on Tax Procedures and aligns definitions, procedures, and processes, amongst other matters, with the New Tax Procedures Law, which entered into force on March 1, 2023.
With the introduction of Corporate Tax in the UAE and the Corporate Tax Law becoming effective for tax periods starting on June 1, 2023, it is crucial to continuously update all relevant legislation and provide Taxable Persons with the necessary guidance to understand how the UAE Tax system applies to them, ensuring ongoing compliance, reported Wam.
Among the key provisions, the cabinet decision outlines the requirements for maintaining accounting records and commercial books, specifying the period and manner of record-keeping. It also introduces updates related to tax agent registration and de-listing procedures, emphasizing the need for communication in Arabic or English, it stated.
Additionally, the rights and responsibilities of tax agents, procedures for reconciliation in tax evasion crimes, and conditions for tax payment and refunds are addressed.
In addition, the new cabinet decision covers tax payment and refund procedures, and the obligations of a trustee in cases of bankruptcy.
According to the ministry, the cabinet decision No. (74) is effective as of August 1, 2023, except for Clause (2) of Article (12) outlining the conditions for juridical persons who wish to be listed in the Register of Tax Agents, which will be effective as of December 1, 2023.
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