Weekly Spotlight: New Tax Procedures Law in the UAE issued
This week the spotlight is on the issuing of the new Tax Procedures Law in the UAE. Under Federal Law No. 7/2017 (which has not yet been Gazetted), the foundations for the tax system are laid out whilst the administration and collection of taxes processes are stipulated and the role of the Federal Tax Authority is defined. It also defines a clear set of common procedures and rules to be applied to all tax laws in the UAE, particularly VAT and excise tax laws. The law covers tax procedures, audits, objections, refunds, collection and obligations, including tax registration, tax-return preparation, submissions, payment and voluntary disclosure rules as well as tax evasion. It also lays out the penalties for non-compliance as well as clear appeal processes in line with international best practices. When it comes into force businesses will have to keep records for five years.
An unofficial translation of the Law can be accessed here: https://www.mof.gov.ae/en/lawsAndPolitics/govLaws/Pages/TAX.aspx. We are monitoring the legislative progress of this important development with our publishing Partners, SADER Legal Publishing and will provide updates as and when appropriate.