UAE: Finance Ministry Announces New Procedures Law, Penalties

UAE: Finance Ministry Announces New Procedures Law, Penalties

The UAE Ministry of Finance has made new announcements related to its corporate tax framework, outlining new procedures and penalties that aim to boost compliance and provide clear guidance.

On Saturday, the Ministry issued Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures – also known as the New Tax Procedures Law. This Cabinet Decision replaces the existing Executive Regulation and ensures alignment with the New Tax Procedures Law, which came into effect on March 1, 2023.

Among the key provisions introduced, the cabinet decision lays out the guidelines for the proper maintenance of accounting records and commercial books, detailing the period and manner of record-keeping. It also includes updates related to the registration and de-listing procedures of tax agents, emphasising the need for effective communication in either English or Arabic.

In addition, the decision addresses the rights and responsibilities of tax agents, procedures for handling tax evasion crimes through reconciliation, and conditions for tax payment and refunds are addressed. It also highlights the obligations of a trustee in cases of bankruptcy.

The ministry introduced additional requirements for Qualifying Investment Funds under Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations