The UAE Ministry of Finance has confirmed a new amendment to the country’s tax procedures law, with changes set to take effect on 1 January 2026. The update is issued under Federal Decree-Law No. (17) of 2025, introducing clearer rules for refunds, audits, and taxpayer rights.
The ministry said the step aims to make tax procedures easier, more transparent, and more consistent across all sectors.
The ministry explained that the updated law gives taxpayers more clarity on how long they have to request refunds of credit balances and how the Federal Tax Authority (FTA) will review such requests. It added that the objective is to strengthen financial discipline while maintaining fairness in tax administration.
A ministry spokesperson said the amendment creates a balanced framework that supports both taxpayer rights and the country’s financial regulations.
Basic changes include a defined period for refund applications, additional flexibility in special cases, and updated rules on when audits or assessments may take place. Transitional arrangements are also included for taxpayers whose refund periods expire around the new law’s start date.
The FTA will now have the authority to issue official and binding guidance to ensure consistency in applying tax laws, reducing confusion and helping businesses follow the correct procedures.
Officials stated that the updated regulations support the UAE’s long-term economic plans by improving confidence, reducing administrative burden, and ensuring tax procedures match global standards.
The ministry said it will issue further instructions before the new rules take effect. It encouraged taxpayers to stay updated as preparations begin for the January 2026 rollout.
