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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (1)
Definitions
For the purpose of applying the provisions of this Decree -Law, the following words and
expressions shall have the meanings assigned thereto respectively, unless the context
requires otherwise:
State : The United Arab Emirates.
Minister : The Minister of Finance.
FTA : The Federal Tax Authority
Director -General : The Director General of FTA.
Business Day : Any weekday, except for weekends and public holidays of
the Federal Government.
Committee : The Tax Dispute Settlement Committee.
Competent Court : The federal court within the jurisdiction of which the
headquarters of FTA or any of its branches is located.
Tax
: Any federal tax levied by virtue of the Tax Law where the
management, collection and implementation thereof is
entrusted to the FTA.
Tax Law : Any federal law whereby the Tax is levied.
Tax Domicile
Certificate : A certificate issued by the FTA confirming the Tax domicile
of a person in the State, pursuant to the provisions of Article
(53) hereof.
Tax Resident : A person residing in the State, pursuant to article (53) hereof.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 3
Person : A natural or legal person.
Business : Any activities carried out regularly, continuously and
independently by any Person anywhere, such as industrial,
commercial, agricultural, professional, craft, service or
drilling activities, any activity related to the use of tangible or
intangible property, or any other activity determined by the
Tax Law.
Taxable Person : Any Person registered or required to be registered for the
purpose of the provisions of the Tax Law.
Taxpayer : Any person required to pay the Tax in the State under the
Tax Law, whether a Taxable Person or end consumer.
Tax Return : The information and data specified for tax ation purposes
and provided by the Taxable Person, according to the form
and mechanism designated by FTA, including the relevant
annexes and schedules
Tax Period : The period of time specified in the Tax Law for which the Tax due is required to be calculated.
Tax Registration : It is a procedure whereby a Person registers its name with
the FTA or the latter registers the same with it, as the case
may be, for Tax purposes.
Tax Registration
Number : It is a unique number issued by FTA for each Person for Tax
purposes.
Registered
Person : The Taxable Person having a Tax Registration Number.
Legal
Representative : A guardian, trustee or curator with regard to incapacitated Persons or Persons with diminished capacity, or the court -appointed bankruptcy tru stee with regard to a
company undergoing bankruptcy, or any Person legally appointed to represent another Person.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 4
Due Tax : A Tax that is calculated and levied under the provisions of
the Tax Law.
Payable Tax : A Tax payable to FTA
Administrative Fines : Sums imposed on the Person by FTA due to the violation of the provisions of this Decree -Law, the Tax Law or the
cabinet resolutions issued in implementation thereof.
Refundable Tax : Amounts refundable by FTA to the Taxpayer, in whole or in part, purs uant to the Tax Law and this Decree -Law.
Tax Assessment : A decision made by FTA under article (23) hereof.
Assessment of
Administrative
Fines : A decision issued by FTA on the Administrative Fines.
Notification : Notifying the Person of decisions iss ued by the FTA, as per
the means set forth in this Decree -Law and the Executive
Regulations hereof.
Voluntary Declaration :
It is a form designated by FTA whereby the Taxpayer notifies FTA of any error or omission in the Tax Return, Tax
Assessment or tax recovery application, pursuant to the
provisions of article (10) hereof.
Register : The Tax Agent Register.
Tax Agent : Any Person registered with FTA authorized by another
Person to represent it before FTA, help it to perform its tax
obligations and e xercise its relevant Tax rights.
Tax Audit : It is a procedure carried out by FTA for auditing commercial records or any information, data or commodities related to a
Person to verify the fulfillment of their obligations under this
Decree- Law or the Tax L aw.
Tax Auditor
: Any FTA employee appointed to carry out the Tax Audit.
Tax Evasion : The Person's use of illegal means that result in reduced
Federal Decree- Law No. (28) of 2022 on Tax Procedures 5
amount of the Due Tax, non -payment of Tax or recovery of a
Tax which the Taxpayer has no right to recover ac cording to
this Decree- Law or the Tax Law.
Executive
Regulations : The Executive Regulations of this Decree -Law.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (2)
Objectives of this Decree- Law
This Decree -Law is intended to:
1. Regulate rights and obligations of the FTA, Taxpayers and any other Person dealing with
the FTA, in compliance with the provisions of this Decree -Law or the Tax Law.
2. Regulate common procedures and rules applicable to all tax laws in the State.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (3)
Scope of Application
The provisions of this Decree -Law shall apply to the procedures related to the management,
collection and implementation of tax laws and Administrative Fines levied by FTA for
violating the provisions of this Decree -Law or the T ax Law.
Part Two
Tax Obligations
Chapter One
Keeping Accounting Records and Commercial Books
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (4)
Record- Keeping
Any Person that carries out any business or is subject to a Tax obligation under the Tax Law
shall keep records for their accounting activities and commercial books, as well as any
tax-related information as determined by the Tax Law, in conformity with th e controls laid
Federal Decree- Law No. (28) of 2022 on Tax Procedures 6
down by the Executive Regulations.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (5)
Language
1. Every Person shall submit the Tax Return as well as data, information, records and
documents related to the Tax they are obligated or required to submit to the FTA in
Arabic.
2. Notwithstanding the provisions of Clause (1) above, FTA may accept the Tax Return and
the information, data, records and documents related to the Tax in any other language;
provided that the Person provides FTA with a translated copy of any of the same into
Arabic if required by the FTA, as stipulated by the Executive Regulations.
3. A Person that submits any translated copy of the data, information, records and any
other documents related to any tax to FTA shall be liable for the accuracy and validity of
such translated copies, and shall bear all relevant costs. The FTA may rely on the
translation submitted thereto.
Chapter Two
Tax Registration
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (6)
Tax Registration, Deregistration and Amendment to Data
1. The Taxable Person may submit the registration application to the FTA pursuant to the
provisions set forth in the Tax Law.
2. The Registered Person shall:
a. Include its Tax Registration Number in all communications and transactions with
FTA and third parties according to the provisions of the Tax Law.
b. Notify FTA according to the form and mechanism designated by FTA of the
occurrence of any case that may require amendment to the information related to its
Tax Register kept at FTA, within twenty (20) business days from the occurrence date
of such case.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 7
c. Submit a deregistration application in accordance with the relevant provisions in the
Tax Law.
3. The Executive Regulations shall determine the Tax Registration and deregistration procedures as well as the amendment to its data.
4. Government bodies in charge of granting business licenses shall notify FTA upon
granting any license, no later than twen ty (20) business days from the issuance date of
the license, as stipulated in the Executive Regulations.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (7)
Legal Representative
The Legal Representative shall:
1. Notify FTA of his appointment, within twenty (20) Business Days from the appoin tment
date, according to the procedures defined by the Executive Regulations;
2. Submit Tax Returns to FTA on behalf of the Taxable Person; and
3. Comply with any requirements under this Decree -Law and the Tax Law, as the case may
be.
Chapter Three
Tax Return and Payable Tax
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (8)
Tax Return Preparation and Submission
1. Every Taxable Person shall:
a. Prepare and submit the Tax Return to FTA pursuant to the provisions of this
Decree- Law and the Tax Law; and
b. Pay any Payable Tax within the time limit set forth in this Decree -Law and the Tax
Law.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 8
2. Any incomplete Tax Return delivered to FTA shall not be admitted if the same fails to
contain the basic data defined by the Tax Law.
3. Any Taxable Person shall be responsible for the authenticity of information and data contained in the Tax Return and any communications with FTA.
4. Any Taxpayer shall pay the Payable Tax and the Administrative Fines within the time
limit defined in this Decree -Law and the Tax L aw.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (9)
Determination of the Payable Tax
1. The Taxable Person shall, upon the payment of any amount to FTA, determine the type
of Tax and the Tax Period related to such amount, and FTA shall allocate the paid
amount accordingly.
2. When the Taxable Person pays any amount without determining the type of Tax or Tax Period, FTA may allocate the amount or a part thereof for the payment of any Tax or
amounts owed by the Taxable Person, as defined by the Executive Regulations.
3. If the Taxable Person pays an amount greater than the Payable Tax amount or has a credit balance with FTA, FTA may allocate the amount or the balance for the payment of any Tax or amounts owed by the Taxable Person, as defined by the Executive
Regulations.
4. If the Taxable Person pays an amount less than the Payable Tax amount, the provisions
set out in Chapter Fo ur of Part Three and Chapter Two of Part Fi ve hereof shall apply.
Chapter Four
Voluntary Declaration
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (10)
1. If the Taxable Person finds out that the Tax Return submitted to FTA or the Tax
Assessment issued by FTA is incorrect in a way which causes the Payable Tax according
to the Tax Law be calculated in an amount less than the correct amount, they shall
submit a Voluntary De claration.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 9
2. If the Taxpayer finds out that the tax recove ry application submitted to FTA is incorrect,
in a way which causes the recovery amount due to them under the Tax Law be
calculated at in an amount higher than the correct amount, they shall submit a Voluntary
Declaration.
3. If the Taxable Person finds out that the Tax Return submitted to FTA or the Tax
Assessment issued by FTA is incorrect, in a way which causes the Payable Tax according
to the Tax Law be calculated in an amount higher than the correct amount, they may
submit a Voluntary Declaration.
4. If the Taxpayer finds out that the Tax recovery application submitted to FTA is incorrect,
in a way which causes the recovery amount due to them under the Tax Law be
calculated at an amount less than the correct amount, they may submit a Voluntary
Decla ration.
5. If the Taxpayer finds out an error or omission in the Tax Return submitted to FTA, without a difference in the Tax amount due, they shall correct such return by submitting a Voluntary Declaration.
6. The Executive Regulations shall define th e detailed provisions related to the Voluntary
Declaration to the FTA, and the mechanism of applying the Administrative Fines levied
before the Voluntary Declaration.
Part Three
Tax Procedures
Chapter One
Notification
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (11)
Methods of Notification
1. FTA shall notify the Person of any decisions or procedures through their address registered with the FTA.
2. The Person shall be deemed to have been notified of any decision and has received any communications if the FTA has sent Notifications and communications according to
Federal Decree- Law No. (28) of 2022 on Tax Procedures 10
Clause (1) above.
3. The Executive Regulations shall define the means of Notification and communications.
Chapter Two
Tax Agents
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (12)
Tax Agent Registration
1. FTA shall create a Tax Agent Register.
2. Any Person may operate as a Tax Agent in the State only after fulfilling the registration
conditions, being registered in the Register and obtaining the license from the competent local authority.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (13)
Requirements for Registration in the Register
1. The Executive Regulations shall determine the conditions, controls and procedures for
registration, suspension of registration and deregistration of the Tax Agent in the
Register, as well as rights and obligations of the Tax Agent.
2. The Tax Agen t shall notify FTA if they cease to operate as a Tax Agent, pursuant to the
controls and procedures set out in the Executive Regulations.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (14)
Appointment of Tax Agent
1. The Person may appoint a Tax Agent to act on its behalf and in its name in respect of its obligations on Tax affairs under this Decree -Law or the Tax Law, without prejudice to
the liability of such Person under this Decree -Law or the Tax Law.
2. Subject to Clause (2) of article (15) above, FTA may not deal with the Tax Agent in
Federal Decree- Law No. (28) of 2022 on Tax Procedures 11
respect of any Person if the latter notifies FTA of expiration of the agency or dismissal of
the Tax Agent, as described in the mechanism set by FTA.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (15)
Records of the Person with the Tax Agent
1. The Tax Agent shall retain the information, documents, records and data related to any Person represented or that had been represented by the Tax Agent, within the period
and in such manner as described in the Executive Regulations.
2. The Tax Agent shall, upon FTA request, provide the same with all information,
documents, records and data in their possession required in respect of any Person
represented or that had been represented by the Tax Agent.
Chapter Three
Tax Audi t
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (16)
FTA's Right to Conduct Tax Audit
1. FTA may conduct a Tax Audit of any Person in order to verify the compliance with the
provisions set forth in this Decree -Law and the Tax Law.
2. FTA shall notify the Person of a Tax Audit at least (10) ten days prior to the Tax Audit.
3. FTA may conduct the Tax Audit at FTA's headquarters, the business place of the Person
subject to audit or elsewhere at which such Person carries out their busine ss, stores
commodities or keeps records.
4. Notwithstanding the provisions of Clause (2) above, a tax auditor may access, without prior notice, to anywhere at which the Person subject to audit carries out its business,
stores commodities or keeps records, and may close down the same temporarily for conducting the audit for a period not exceeding (72) seventy two hours in any of the
following cases:
a. If FTA has serious reasons to believe that the Person subject to the Tax Audit is
involved or implicate d in Tax evasion in respect of the obligations of such Person or
Federal Decree- Law No. (28) of 2022 on Tax Procedures 12
any other Person imposed by this Decree -Law or the Tax Law.
b. If FTA has serious reasons to believe that failure to temporarily close down the place
at which the tax audit is conducted may impede the audit.
c. If the Person that had been notified of the Tax audit under Clause (2) above attempts
to prevent the Tax auditor's access to the place at which the Tax audit is to be
conducted.
5. In all the cases set forth in Clause (4) above, the Tax auditor shall obtain prior written
consent of the Director -General or his representative and permission from the Public
Prosecution if the place required to be accessed is a housing place.
6. Premis es closed down under this Article shall be reopened after the lapse of the (72)
seventy -two hours, unless FTA obtains permission from the Public Prosecution that
permits the extension of the closure period for a similar period before the lapse of the
menti oned seventy -two hours.
7. The Executive Regulations shall determine the necessary procedures related to Tax audit.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (17)
FTA's Right to Access to Original Records or Photocopies During Tax Audit
A Tax auditor may, while conducting the Tax Audit , access to original records or photocopies
thereof and take samples of goods, devices or other assets from the business place of the Person subject to the Tax Audit or those in its possession or seize the same, in accordance
with the controls defined by t he Executive Regulations.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (18)
Tax Audit Timing
A Tax Audit shall be conducted during the normal business hours of FTA. If necessary, the
audit may be conducted beyond such times under extraordinary circumstances by a
decision of the Director -General or his representative.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (19)
Federal Decree- Law No. (28) of 2022 on Tax Procedures 13
New Information Appears After Tax Audit
Without prejudice to the provisions of article (46) hereof, FTA may audit any matter that
had already been audited if new information comes out that may affect the outcome of the
Tax audit; provided that such audit shall be subject to the Tax audit procedures in
accordance with the provisions of this Decree -Law and the Executive Regulations thereof.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (20)
Cooperation During Tax Audit
Any Person subject to a Tax Aud it or their Tax Agent or legal representative shall be required
to provide all facilities and possible assistance to the Tax auditor in order to enable him to
perform his job.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (21)
Rights of Persons Subject to Tax Audit
A Person subject to a Tax audit shall have the right to:
1. Request Tax auditors to show their professional ID cards;
2. Obtain a copy of the Tax audit Notification;
3. Attend the Tax audit conducted outside FTA; and
4. Obtain copies of any original paper or digital documents that are seized or obtained by FTA upon the Tax audit, as defined by the Executive Regulations.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (22)
Notification of Tax Audit Findings
1. FTA shall notify the Person subject to Tax Audit of the Tax Audit outcome within the
time limit and according to the procedures determined by the Executive Regulations.
2. The Person subject to Tax audit may access to and obtain the documents and
information relied upon by FTA for assessment of the Due Tax according to the controls set by the Executive Regulations.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 14
Chapter Four
Tax Assessment and Assessment of Administrative Fines
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (23)
Tax Assessment
1. FTA shall issue a Tax Assessment to determine the value of the Payable Tax, Refundable
Tax or any other matters specified by the Tax Law or the Executive Regulations, and shall
notify the Taxpayer of the same within (10) ten Business Days from the issuance date
thereof in any of the following cases:
a. The Taxable Person fails to apply for the Tax Registration within the time limit
prescribed in the Tax Law.
b. Failure of the Registered Person to submit the Tax Return within the time limit
prescribed by the Tax Law.
c. The Registered Person's failure to pay the Tax indicated as a Payable Tax in the Tax Return submitted within the time limit prescribed in the Tax Law.
d. The Taxable Person has submitted an incorrect Tax Return.
e. The Registered Person's failure to calculate the Tax on behalf of another Person when he is obliged to do the same in accordance with the Tax Law.
f. If the Payable Tax is incomplete as a result of Tax Evasion by the Person or due to Tax Evasion in which he was involved.
g. Any other cases under the Tax Law.
2. FTA may issue an estimated Tax Assessment of the Payable Tax and the Refundable Tax if it is not possible to determine the actual amount of the Payable Tax or the authenticity
of the Tax Return. In this case, FTA shall:
a. Amend the estimated Tax Assessment issued under this Article based on new
information that may affect the subject of the Tax Assessment.
b. Notify the Person concerned of such amendments within (10) ten Business Days
following the amendment date.
3. The Executive Regulations shall specify the information or data to be included in the Tax Assessment.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 15
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (24)
Assessment of Administrative Fines
1. FTA shall issue an assessment of Administrative Fines and inform the Person of same
within (5) five Business Days in respect of any of the following violations:
a. The Person that carries out business or is subject to a Tax obligation under this
Decree- Law or the Tax Law fails to keep the required records and other information
specified both in this Decree -Law and the Tax Law.
b. The Person that carries out business or is subject to a Tax obligation under this Decree -Law or the Tax Law fails to submit the data, records and documents related
to the Tax in Arabic to FTA upon request.
c. The Taxable Person fails to submit the Tax Registration application within the time
limit specified in the Tax Law.
d. Failure of the Registered Person to submit a deregistration application within the
time limit specified in the Tax Law.
e. Failure of the Registered Person to inform FTA of any situation that may require
amendment to the information related to its tax re gister kept by FTA.
f. The Legal Representative of the Taxable Person fails to report his appointment as a
legal representative within the specified time limits. In such a case, fines shall be
collected from the funds of the Legal Representative.
1. The Legal Representative of the Taxable Person fails to submit the Tax Return within
the specified time limits. In such a case, fines shall be collected from the funds of the
legal representative.
h. Failure of the Registered Person to submit the Tax Retur n within the time limit
specified in the Tax Law.
i. The Taxable Person fails to pay the Due Tax within the time limit specified in the Tax
Law.
j. The Registered Person has submitted an incorrect Tax Return.
k. A Voluntary Declaration submitted by the Taxable Person or Taxpayer on errors in the Tax Return, Tax Assessment or the application for recovery of the Tax, in
Federal Decree- Law No. (28) of 2022 on Tax Procedures 16
accordance with clauses (1) and (2) of article (10) above.
l. The Taxable Person or Taxpayer fails to make a Voluntary Declaration of errors in the
Tax Return, Tax Assessment or tax recovery application, in accordance with Clauses
(1) and (2) of article (10) of this Decree -Law before being notified that FTA
conducted a Tax Audit on it.
m. The Pers on that is subject to the Tax Audit or their Tax Agent or Legal Representative
fails to provide facilities for the Tax auditor, in violation of the provisions of article (20) of this Decree -Law. In such a case, fines shall be collected from the funds of the
Person or their legal representative or Tax Agent, as the case may be.
n. The Registered Person fails to calculate the Tax for another Person when the
registered Taxable Person is obligated to do the same in accordance with the Tax
Law.
o. Any other violation included in the Tax Law or under a resolution of the Cabinet.
2. The Executive Regulations shall specify the information and data to be included in the assessment of Administrative Fines.
3. The Cabinet shall issue a Resolution setting out the Administrative Fines for each of the violations mentioned in Clause (1) above, with regard to this Decree -Law, the Tax Law or
any other violation specified under a Cabinet resolution.
4. The amount of any Administrative Fine shall not exceed twice the Tax amount on which
the Assessment of Administrative Fines has been issued.
5. The imposition of any Administrative Fine under the provisions of this Decree -Law or
any other law shall not relieve any Person from their liability to pay th e Due Tax, in
accordance with the provisions of this Decree -law or the Tax Law.
Chapter Five
Penalties, Procedures and Measures
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (25)
Tax Crimes and Penalties
Federal Decree- Law No. (28) of 2022 on Tax Procedures 17
1. The penalties set forth herein shall not prejudice to any severer penalty stipulated in any
other law.
2. A prison sentence and/or a fine not less than the evaded Tax amount and not more than (3) three times the amount of evaded Tax shall be inflicted on any Person committed the
Tax Evasion by one of the following act:
a. Deliberately refrains from paying any Payable Tax;
b. Deliberately reduces the actual value of its business or revenues or does not include
its associates business in order not to re ach the required registration limit, Tax rate or
other Tax threshold, as specified in the Tax Law;
c. Deliberately levies or collects amounts as a Tax without being registered;
d. Deliberately reduces the Tax due or engages, in any manner, in the Tax E vasion;
e. Deliberately performs or fails to perform any other act that would constitute a Tax
Evasion under this Decree -Law or the Tax Law.
3. A prison sentence and/or a fine not less than the amount of the Administrative Fine and
not more than (3) three times the amount thereof shall be inflicted on any Person that
abstains from paying the payable Administrative Fine, unless it is decided to be
exempted.
4. A prison sen tence and/or a fine not exceeding (AED 1,000,000) one million dirhams
shall be inflicted on any Person committing any of the following acts:
a. A Person that intentionally provides false information, data and documents to FTA;
b. A Person who intention ally hides or destroys documents, data, information or other
materials that are required to be kept and provided to FTA;
c. A Person who has stolen, abused or caused damage to documents or other materials kept by FTA; and
d. A Person who prevents or impedes employees of FTA from carrying out their duties.
5. If any of the above acts takes place and cause Tax Evasion or its facilitation or concealment, the penalty set forth in Clause (2) above shall be applicable.
6. Any Pe rson who is proven to have been involved directly in or caused one of the crimes
set forth in this Decree -Law or the Tax Law shall be penalized by the penalty prescribed
therefor in this Decree -Law, pursuant to the provisions of criminal involvement set fo rth
Federal Decree- Law No. (28) of 2022 on Tax Procedures 18
in Decree- Law No. (31) of 2021, referred to hereinabove.
7. If multiple convicts are fined by one judgment in one crime, whether they are the
perpetrators or accomplices, they shall be jointly liable to pay the same.
8. Recidivism shall constitute an aggravating circumstance. For the purpose of this
Decree- Law or the Tax Law, a recidivist is any Person who is convicted by a final
judgment in one of the crimes set forth in this Article, whatsoever the penalty, then commits one of such crimes before t he lapse of (5) five years from the date on which the
said final judgment is rendered.
9. Without prejudice to the provisions of Clause (11) hereunder, any Person involved in a Tax Evasion crime shall be severally and jointly liable with the involved Per son for
paying the Payable Tax and the Administrative Fines.
10. When the Court renders a judgment on conviction, it shall order to publish the judgment
or a summary thereof with the appropr iate means at the expense of the convict, at the
request by FTA to the Public Prosecution.
11. The judgment on any penalty under the provisions of this Decree -Law or any other law
shall not exempt any Person from the liability for paying the Payable Tax or the
Administrative Fines.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (26)
Procedures and Measures
1. A criminal action may be instituted against the crimes set forth in this Decree -Law or the
Tax Law only based on a written application from the Director -General.
2. Without prejudice to the cases in which the Law requires the confiscation ruling, the
Court may, when a judgment of conviction is rendered in respect of any crime set forth
in this Decree -Law or the Tax Law, order that the detected items and property be
confiscated, with out prejudice to bona fide third parties' rights.
3. Notwithstanding the provisions of Clause (2) above, FTA shall have the right to carry out the procedures of storage, transfer, retention, disposition, destroy, recycling or sale of
seized perishable, d iminishable or leakable items, or would otherwise affect the safety of
other goods and facilities in the same, along with disposing of left goods.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 19
4. Any actions taken by FTA on the seized items shall not prejudice the liability for paying
the Payable Tax or the Administrative Fines, pursuant to the provisions of this
Decree- Law or the Tax Law.
5. The holder of right to seized items may request to rec over the same after paying the full
Tax, Administrative Fines and expenses due thereon, as the case may be.
6. Neither FTA nor its employees may be held liable f or malfunction or damage to the items
seized as a result of FTA's disposition thereof under this Article.
7. The Executive Regulations shall define the procedures and controls related to the application of Clauses (3), (4) and (5) above.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (27)
Reconciliation on Tax Evasion Crimes
1. Before a criminal action is instituted, FTA may enter into reconciliation on Tax Evasion
crimes and the deliberate abstention from the payment of the Administrative Fines set
forth in this Dec ree- Law or the Tax Law against the payment of the full Payable Tax and
Administrative Fines. FTA may, before instituting a criminal action, reconcile the crimes set forth in Clause (4) of article (25) above after the amounts defined by the Executive
Regula tions are paid.
2. The Public Prosecution may, after the criminal action is instituted and before a judgment
on conviction is rendered, order reconciliation on the crimes referred to in Clause (1)
above against the payment of the full Payable Tax and Adm inistrative Fines, plus an
amount equivalent to a percentage of the evaded Tax, as defined by the Executive
Regulations, or the amounts defined by the Executive Regulations for the crimes set
forth in Clause (4) of article (25) above.
3. The Public Prose cution may, after a judgment on conviction is rendered, order
reconciliation on the crimes referred to in Clause (1) above against the payment of the full Payable Tax and the Administrative Fines, plus an amount equivalent to a percentage
of the evaded Tax , as defined by the Executive Regulations, or the amounts defined by
the Executive Regulations for the crimes set forth in Clause (4) of article (25) above.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 20
4. The reconciliation under Clauses (2) and (3) above shall be after consulting FTA.
5. The rec onciliation shall entail the lapse of criminal proceedings and the revocation of
effects arising therefrom. The Public Prosecution shall order a stay of execution of the
penalties imposed where the reconciliation is made during the execution thereof, even if the judgment has become final.
6. The Executive Regulations shall define the conditions, controls and procedures of
reconciliation set forth in this Article.
Part Four
Tax Assessment Review, Objection and Challenge
Chapter One
Application for Tax Assessment Review
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (28)
Application for Tax Assessment Review
1. Without prejudice to the provisions of article (29) hereunder, any Person may submit an application to FTA for reviewing the Tax Assessment or part thereof issued against the
same and any associated Administrative Fines.
2. The application submitted under Clause (1) shall be reasoned, and shall be submitted within (40) forty Business Days from the date on which the Person is notified of the Tax
Assessment and the associated Administrative Fines.
3. FTA shall review the application submitted under Clause (1) above and shall be decided on within (40) forty Business Days from the date of receiving the said application. The
applicant shall be notified of the decisio n within (5) five Business Days from the date of
issuance.
3. The Person may submit an application for reconsideration, pursuant to article (29)
hereunder, against the decision issued under Clause (3) above, within (40) forty
Business Days from the date of notifying the Person of the decision, pursuant to Clause
(3) above, or expiry of the time limit within which FTA shall issue a decision on the
application and so notify the applicant.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 21
5. No application for reviewing a Tax Assessment may be submitted or continued if a
reconsideration application for which has been submitted.
6. The application under Clause (1) above shall be submitted according to the form and mechanism identified by FTA.
Chapter Two
Application for Reconsideration
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (29)
Application for Reconsideration
1. Any Person may submit an application to FTA for reconsideration of any decision or part
thereof issued by FTA against such Person. The application shall be reasoned, and shall
be submitted within (40) forty Business Days from the date on which the Person is
notified of the respective decision.
2. FTA shall consider and decide on the application by a reasoned decision within (40) forty
Business Days from the date of receiving the said application. The applicant shall be
notified of FTA decision within (5) five Business Days from the date of issuance.
3. An application for reconsideration on a Tax Assessment for which an application for
review had been submitted to FTA may be submitted only after FTA issues a decision or expiry of the time limit within which FTA shall issue a decision on the application and so
notify the applicant, pursuant to the provisions of article (28) and (35) above.
4. The application under Clause ( 1) above shall be submitted according to the form and
mechanism identified by FTA.
Chapter Three
Objection Submitted to the Committee
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (30)
Federal Decree- Law No. (28) of 2022 on Tax Procedures 22
Tax Dispute Settlement Committee
1. One or more standing committees to called "Tax Dispute Settlement Committee" shall
be formed under the chairmanship of a member of the Judiciary and the membership of
two experts from those enrolled in the Tax Experts Roll, who shall be appointed by a
decision of the Minister of Justice in coordination with the Minister.
2. The Cabinet shall issue a resolution on the Committee's rules of procedure,
remunerations of its members and the applicable procedures.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (31)
Competences of the Committee
The Committee shall have the following competences:
1. To decide on objections filed against FTA's decisions on reconsideration applications.
2. To decide on reconsideration applications submitted to FTA and no decision has been
taken thereon, pursuant to the provisions of this Decree -Law.
3. Any other competences assigned to the Committee by the Cabinet.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (32)
Objection Submission Procedures and Cases of Objection Rejection
1. An objection to the decision of FTA with regard to an application for reconsideration
shall be submitted within (40) forty Business Days from the date of Notification of FTA
decision.
2. The objection submitted to the Committee shall not be accepted in t he following cases:
a. If the application for reconsideration has not been submitted to FTA beforehand;
b. If the full tax subject of the objection is not paid; and
c. If the objection has not been submitted within the time limit set out in Clause (1 )
above.
3. The Cabinet may, at the proposal of the Minister, issue a resolution for introducing any
modifications to the amount of Payable Tax, pursuant to Paragraph (b) of Clause (2)
above, for the purpose of submitting an objection under this Article.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 23
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (33)
Procedures of the Committee
1. The Committee shall consider the objection submitted thereto and decide thereupon
within (20) twenty Business Days from the date of receipt of the objection.
2. The Committee shall notify the objecting Per son and FTA of its decision within (5) five
Business Days from the issuance date thereof.
3. The decision of the Committee shall be final in respect of the objection if the total
amount of the Due Tax and the Administrative Fines specified therein does not exceed
AED (100,000) one hundred thousand dirhams.
4. In all cases, claims of tax disputes shall not be accepted before the Competent Court if
the objection is not filed with the Committee beforehand.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (34)
Enforcement of the Committee's Decisions
1. Final decisions made by the Committee on disputes not exceeding AED (100,000) one hundred thousand dirhams shall be considered a writ of execution.
2. Decisions made on disputes exceeding AED (100,000) one hu ndred thousand dirhams
shall be considered a writ of execution if they are not challenged before the Competent
Court within a period of (40) forty Business Days from the date of the objection result
Notification.
3. The Committee's final decisions having the force of the writ of execution shall be
enforced by the enforcement judge of the Competent Court.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (35)
Extension of Time Limits
1. FTA or the Committee, as the case may be, for any reason whatsoever, may extend any of the time limits set o ut in Clause (3) of article (28), Clause (2) of article (29) and Clause
(1) of article (33) above for a period specified by the Executive Regulations.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 24
2. FTA or the Committee, as the case may be, at the request of any Person for any of the
reasons specified in the Executive Regulations, may grant such Person an extension for
any of the time limits set out in Clause (2) of article (28), Clause (1) of article (29) and
Clause (1) of article (32) above.
3. If the extension application submitted under Clause (2) above is rejected, pursuant to the
provisions of article (32) or (36) of this Decree -Law, the decision of FTA or the
Committee shall be final and irrevo cable or non -appealable, as the case may be.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (36)
Appeal Proceedings Before Courts
1. Without prejudice to the provisions of article (34) and (37) above, FTA and the Person,
as the case may be, may appeal against the decision of the Committee before the
Competent Court within (40) forty Business Days from the date of notifying FTA or the
Person, as the case may be, of the decision of the Committee in any of th e following
cases:
a. Objection to the committee's decision in whole or in part.
b. No decision has been made by the Committee on an objection already submitted thereto in accordance with the provisions of this Decree -Law.
2. The Competent Court shall adjudicate the inadmissibility of the appeal against FTA in the
following cases:
a. In the cases of objection rejection by the Committee, as set out in Clause (2) of Article
(32) above.
b. The Person's failure to provide a doc ument proving the full payment of Tax to FTA.
c. The Person's failure to provide a document proving the payment of a percentage not less than (50%) of the Administrative Fines prescribed according to the Committee's decision or the court judgment, as the case may be, through the cash payment to FTA
or by providing an accredited bank guarantee in favour of FTA.
3. The Cabinet may, at the proposal of the Minister, introduce any modifications to the
amount set out in Paragraph (b) and the percentage set ou t in Paragraph (c) of article (2)
above.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 25
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (37)
Special Procedures for Objection and Appeal
Notwithstanding the provisions of Articles (31), (32), (33), (34) and (36) above, the Cabinet
shall issue, at the proposal of the Minister, a reso lution approving an alternative mechanism
for objection and appeal if parties to a dispute are any of the federal or local government
authorities set out in this Resolution. Until the said Cabinet resolution is issued and entered
into force, the provisions set forth in this Decree -Law shall apply to objections or appeals
filed by federal and local government authorities related to Tax disputes.
Part Five
Tax Recovery and Collection
Chapter One
Recovery of Tax
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (38)
Tax Recovery Application
1. The Taxpayer may submit an application for recovery of any Tax he has paid if the same
is entitled to recover such Tax in accordance with the Tax Law and it is found out the
amount already paid exceeds the Payable Tax and the Administrative Fines, in
accordan ce with the procedures specified by the Executive Regulations.
2. FTA shall review the application submitted under Clause (1) and shall notify the
Taxpayer of its decision approving rejecting the application.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (39)
Tax Refund Procedures
1. FTA shall make a set -off between the amount required to be refunded and any other
undisputed Payable Tax or Administrative Fines of the Taxpayer applying for the
recovery, in accordance with the Tax Return or Tax Assessment issued by FTA before the
refund of any amount related to a particular Tax.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 26
2. FTA may abstain from refunding any amount mentioned in Clause (1) of this Article in
any of the following cases:
a. If it finds out that there are other disputed Tax amounts related to such Taxpayer.
b. If the Person is subject to Tax Audit. In such a case, FTA may not abstain from refunding the outstanding amount following the fulfillment of the conditions
identified by FTA Board resolution.
c. By virtue of a decision by the Competent Court.
3. FTA s hall refund the Tax under this Article in accordance with the procedures and
controls specified by the Executive Regulations.
Chapter Two
Tax Collection
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (40)
Collection of Payable Tax and Administrative Fines
1. If the Person fails to pay the Payable Tax within the time limits specified in this
Decree- Law and the Tax Law, the following actions shall be taken:
a. FTA shall serve a Notification to the Person for payment of the Payable Tax and the
Administrative Fines within (20) twenty Business Days from the date of notification.
b. In case the Person fails to make the payment after being notified in accordance with Paragraph (a) of Clause (1) of this Article, the Director -General shall issue a decision
obligating the Person to pay the Payable Tax and the Administrative Fines, and such decision shall be notified within (5) five Business Days from the date of the decision, accompanied by the Tax Assessment and the assessment of Administrative Fines.
c. The decisi on of the Director -General on the Tax Assessment and assessment of
Administrative Fines shall be considered as a writ of execution for the purpose of
enforcement by the enforcement judge of the Competent Court.
2. If FTA finds out that the Payable Tax am ounts could be lost, the Director -General may
ask an interim relief judge of the Competent Court to issue an order on petition to attach
at the Person's property, at the possession of any one, adequate to collect such amounts.
Such amounts shall be under a precautionary attachment and may be disposed of only if
Federal Decree- Law No. (28) of 2022 on Tax Procedures 27
the attachment is lifted by a judgment by the Competent Court at the request of the
Director -General.
3. The Tax and other amounts payable to FTA under the Tax Law shall take precedence over all fu nds of debtors thereof or Persons bound to pay the same to FTA under the
Law, based on the priority over all other debts, other than legal expenses.
4. Any Person who receives any amount as Tax, shall pay the same to FTA, and shall be treated with the same treatment of the Payable Tax.
Chapter Three
Payment and Collection of Tax and Administrative Fines in Special Cases
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (41)
Liability for Paymen t of Tax and Administrative Fines in Case of Partnership
Without prejudice to any provisions in the Tax Law, if multiple Persons participate in
business that do not have an autonomous legal personality, each of them shall be held liable before FTA, severa lly and jointly, for the Payable Tax and the Administrative Fines for such
business.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (42)
Liability for Tax Payment in case of Partnership
Without prejudice to any provisions in the Tax Law, if multiple Persons participate in business tha t do not have an autonomous legal personality, each of them shall be held liable
before FTA, severally and jointly, for the Payable Tax and the Administrative Fines for such
business.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (43)
Payment of Tax and Administrative Fines in Special Cases
1. The amount of Payable Tax shall be paid in cases of death as follows:
a. For the Payable Tax of a natural Person prior to the date of his death, the Tax amount
shall be paid from the elements of the estate or of the inc ome generated from such
Federal Decree- Law No. (28) of 2022 on Tax Procedures 28
estate before payout to the heirs or legatees.
b. If, after the estate is apportioned, it is founds out there is an outstanding Payable Tax,
the heirs and the legatees shall be held liable within their respective shares for
paymen t the Payable Tax, unless a certificate of discharge has been obtained from
FTA for the estate representative or any heir.
2. The Payable Tax and the Administrative Fines of the Taxable Person who is incapacitated or with reduced capacity, missing, lost or of unknown domicile and the like shall be paid by his legal representative from assets and property of the Taxable Person, subject to the
legislation in force in this regard.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (44)
Payment and Administrative Fines of Tax in Case of Bankruptcy
1. An appointed bankruptcy trustee shall communicate with FTA to inform him of the Due
Tax or FTA's desire to conduct a tax audit for the specified Tax Period(s).
2. FTA shall inform the bankruptcy trustee of the amount of the Payable Tax or the tax aud it within (20) twenty Business Days following the receipt of the notification of the
bankruptcy trustee.
3. The bankruptcy trustee has the right to appeal, object to and challenge the assessment of
FTA or payment of the Due Tax.
4. The Executive Regulations shall specify the procedures for communication with FTA,
grievance, objection and payment of the Due Tax.
Part Six
General Provisions
Chapter One
Confidentiality and Conflict of Interest
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (45)
Professional Confidentiality
1. Employees of FTA shall not disclose the information obtained or accessed to in their
Federal Decree- Law No. (28) of 2022 on Tax Procedures 29
professional capacity or on account thereof during their work, except as determined or
defined in accordance with the Executive Regulations.
2. In all the cases re ferred to in Clause (1) above, disclosure may only be made after the
approval of the employees authorized by the Board of Directors of FTA, as defined by the Executive Regulations.
3. Employees of FTA shall, upon completion of their services, maintain their professional confidentiality and not to disclose the information they obtained or accessed thereto due to their job capacity only at the request of judicial authorities and in accord ance with the
Executive Regulations.
4. Any Person who has obtained information in accordance with the provisions of the
Decree- Law shall not disclose or use the information except for the very purpose for
which it was obtained, without prejudice to the liability resulting therefrom, where
necessary.
5. The Board of Directors of FTA shall issue the regulations and instructions concerning the
organization of internal procedures to protect the confidentiality of information in FTA
and the obligations of t he Tax Agent in this regard.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (46)
Conflict of Interests
Any employee of FTA may not perform or engage in any tax procedures related to any
Person in the following cases:
1. In case of a kinship up to the fourth degree between the employee and such natural
Person;
2. In case of a common interest between the employee and such natural Person or one of their relatives up to the third degree;
3. In case of a personal or financial interest or any other relationship between the employee and such Person influencing the employee's ability to take an independent decision; and
4. In case the Director -General decides not to carry out any Tax procedures related to such
Person for the presence of any other case of conflict of interest.
Federal Decree- Law No. (28) of 2022 on Tax Procedures 30
Chapter Two
Time Limits & Prescription
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (47)
Prescription
1. Except for the cases set out in Clauses (2), (3), (6) and (7) hereunder, FTA may not
conduct a Tax audit or issue a Tax Assessment on the Taxable Person after (5) five years
from the end of the relevant Tax Period.
2. FTA may conduct a Tax Audit or issue a Tax Assessment on the Taxable Person after (5) five years from the end of the relevant Tax Period if they are notified of the
commencement of such Tax Audit prior to the lapse of the (5) five -year period; provided
that the Tax Audit or the Tax Assessment issuance, as the case may be, within (4) four
years from the date of the Tax Audit Notification.
3. FTA may conduct a Tax Audit or issue a Tax Assessment after (5) five years from the end
of the relevant Tax Period if such Tax Audit or the Tax Assessment issuance is related to a
Voluntary Declaration that had been submitted in the fifth year of the end of the Tax
Period; provided that the Tax Audit is made or the Tax Assessment is issued, as the case
may be, within on e year from the date of submitting the Voluntary Declaration.
4. The Cabinet, at the proposal of the Minister, may issue a resolution amending the time limit set for the completion of the Tax Audit or the issuance of the Tax Assessment,
pursuant to Claus es (2) or (3) above.
5. No Voluntary Declaration may be submitted following the lapse of (5) five years from
the end of the relevant Tax Period.
6. In case of Tax Evasion, FTA may conduct a Tax Audit within (15) fifteen years from the
end of the Tax Period during which the Tax Evasion occurred.
7. In case of non -tax registration, FTA may conduct a Tax Audit or issue a Tax Assessment
within (15) fifteen years from the date on which the Taxable Person was required to
make the tax registration.
8. The prescription set forth in this Article shall cease for any of the reasons set forth in Federal Law No. (5) of 1985, Enacting the Law of Civil Transactions or any superseding
Federal Decree- Law No. (28) of 2022 on Tax Procedures 31
federal law.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (48)
FTA's Right to Claim Payment
The Payable Tax and A dministrative Fines, which have been notified to the Taxable Person,
shall not lapse by prescription and may be claimed by FTA at any time.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (49)
Time Limit for Tax Obligations
Unless a specific time limit is set for the performance of any obligat ion or any other action in
this Decree -Law or the Tax Law, FTA shall grant the Taxable Person a time limit for this
purpose compatible with the nature of the obligation or the procedure of not less than (5)
five Business Days and not more than (40) forty B usiness Days from the date of the incident
leading to the occurrence of the obligation or action. FTA may extend such time limit.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (50)
Calculating the Time Limits
In all cases, the following rules shall apply upon calculating the time limits:
1. The Notification day or the day on which the incident for which the time limit occurred is not included in the time limit.
2. If the last day of the time limit is not a Business Day, the time limit shall be extended to
the subsequent first Business Day .
3. The time limits and dates set forth in this Decree -Law and the Tax Law shall be
calculated according to the Gregorian calendar.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (51)
Controls of Administrative Fines Payment in Installments, Exemption and
Refund
Federal Decree- Law No. (28) of 2022 on Tax Procedures 32
1. If FTA l evies or collects an Administrative Fine from any Person for violating the
provisions of this Decree -Law or the Tax Law, the Committee set out in Clause (2)
hereunder may, at the proposal of the Director -General, issue a decision approving the
payment of the Administrative Fine amount in installments or exemption from or
refunding, in whole or in part, such amount, in accordance with the controls and
procedures issued by virtue of a Cabinet resolution, at the proposal of the Minister.
2. FTA Board Chairman shall issue a resolution forming the Committee set forth in Clause
(1) above under his chairmanship or his deputy and membership of two members of the
Board. The resolution forming the Committee shall provide for the Committee's working
system and the me thod of holding its meetings.
Chapter Three
Miscellaneous Provisions
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (52)
Proving the Authenticity of Data
The burden of proving the Tax Retur n authenticity shall lie with the Taxable Person. In cases
of Tax Evasion, the burden of proof shall lie with FTA.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (53)
Judicial Police
The Director -General and Persons designated under a resolution of the Minister of Justice, in
agreement with t he Minister, shall have the capacity of judicial officers for detecting crimes
or violations against the provisions of this Decree -Law, the Tax Law or resolutions issued in
implementation thereof.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (54)
Tax Resident
1. For the purpose of the Tax Law or any convention or arrangement to which the State is a
party, the Cabinet shall issue a resolution, at the proposal of the Minister, establishing
Federal Decree- Law No. (28) of 2022 on Tax Procedures 33
the conditions whereby a Person can be deemed a Tax Resident.
2. FTA shall issue the Tax Domicile Cer tificate for the Tax Resident pursuant to the
provisions established by the Cabinet resolution.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (55)
FTA Fees
By vir tue of a Cabinet resolution, at the proposal of the Minister, the fees payable to FTA
shall be identified, pursuant to the provisions of this Decree -Law and the Executive
Resolution thereof.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (56)
Repeals
1. Federal Law No. (7) of 2017, on Tax Procedures, as amended, shall hereby be repealed.
2. Any provision contradicting or repugnant to the provisions of this Decree -Law shall
hereby be repealed.
3. The Executive Regulations of Federal Law No. (7) of 2017, on Tax Procedures, as
amended, and any other resolutions issued in implementation thereof shall hereby be
repealed, in so far as they do not contradict the provisions of this Decree -Law, until the
superseding Executive Regulations and resolutions are issued, pursuant to the provisions of th is Decree- Law.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (57)
Executive Regulations
The Cabinet shall issue, at the proposal of the Minister, the Executive Regulations of this Decree- Law.
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tax | Federal Decree by Law No. (28) of 2022 Concerning Tax Procedures | Article (58)
Publication and Entry into Force of the Decree- Law
This Decree- Law shall be published in the Official Gazette, and shall enter into force as of 1st
Federal Decree- Law No. (28) of 2022 on Tax Procedures 34
March 2023.
Mohammed bin Zayed Al Nahyan
President of the United Arab Emirates
Issued at the Presidential Palace – Abu Dhabi
Dated: 4 th Rabi' al -Awwal 1444 AH,
Corresponding to: 30 th September 2022 AD
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (1)
For the purpose of applying the provisions of this Resolution , the following words and
expressions shall have the meanings assigned thereto respectively, unless the context otherwise
requires:
State : The United Arab Emirates.
Minister : The Minister of Finance.
Authority : The Federal Tax Authority. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 2
Value Added Tax
(VAT) : A tax levied on the importation and supply of goods and services at
every stage of production and distribution, including the deemed
supply .
Tax : The Value Added Tax
GCC States : All the states, which are full members of the Cooperation Council
for the Arab States of the Gulf in accordance with the GCC Charter .
Applying States : The GCC States, which apply the Tax law under issued legislation .
Goods : Tangible properties which can be sup plied, including the real
property, water, and all types of energy determined by this
Resolution .
Services : Anything other than the goods, which can be supplied .
Standard Rate : The tax rate set out in article (3) of the Decree -Law .
Importation : Bringing goods or services into the State from abroad .
Relevant Goods : The goods imported and not exempted from the tax if supplied in
the State .
Relevant Services : The services imported, whose place of supply is in the State, and not
exempted from the tax if supplied in the State .
Person : A natural or legal person.
Taxable Person : Each person that is, or ought to be, registered for tax purposes under
the Decree -Law .
Taxpayer : Any person that is obligated to pay the tax in the State pursuant to
the Decree -Law, whether such person is a taxable person or an end
consumer .
Legal
Representative : The manager of a company, guardian, or custodian of a minor or
legally incompetent person, or any other person legally appointed
to repres ent another .
Tax Registration : A procedure under which a taxable person or the legal
representative thereof registers for the tax purposes at the Authority Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 3
Tax Registration
Number (TRN) : A unique number assigned by the Authority to each person
registered for the tax purposes
Registrant : A taxable person holding a tax registration number .
Recipient of
Goods : The person to whom the goods are supplied or imported .
Recipient of
Services : The person to whom the services are supplied or imported .
Tax Return : The information and data specified for the tax purposes and
provided by the taxable person in accordance with the form
prepared by the Authority .
Consideration : Anything that has been received or expected to be received for the
supply of goods or services, whether it is cash payment or in any
other form recognized as compensation .
Business : Any activity that is practiced on an ongoing, regular, and
independent basis by any person and in any place, such as the
industrial, commerci al, agricultural, professional, handicraft or
service activity, excavation activities or any activity related to the
use of tangible or intangible properties .
Exempted Supply : The supply of goods or services for a consideration during the
practice of the business within the State, which shall not be taxed
and the input tax levied on may not be refunded, except under the
provisions of the Decree -Law .
Taxable Supply : The supply of goods or services for a consideration during the
practice of the business by any person within the State, not
including the exempted supply .
Deemed Supply : All that is regarded as a supply and treated as a taxable supply in
accordance with the cases set forth in the Decree -Law . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 4
Input Tax : The tax paid by, or du e from, a person when goods or services are
supplied to or imported by such person .
Output Tax : The tax levied on the taxable supply and on any supply which is
deemed taxable supply .
Refundable Tax : The amounts paid that may be refunded by the Authority to the
taxpayer under the provisions of the Decree -Law .
Due Tax : The tax that is calculated and levied under the provisions of the
Decree -Law .
Payable Tax : The tax which becomes due to be paid to the Authority.
Tax Period : A specific period for which the payable tax shall be calculated and
paid .
Tax Invoice : A written or electronic document in which any taxable supply and
its details are recorded .
Tax Credit Note : A written or electronic document in which any amendment to
reduce or cancel a taxable supply and its details are recorded .
Government
Agencies : Ministries, government departments and entities and federal and
local public authorities and institutions in the State .
Charities : National nonprofit societies and institutions of public welfare,
which are determined by a Cabinet resolution to be issued upon the
proposal of the Minister .
Mandatory
Registration
Threshold : An amount specified in this Resolution and if the value of tax able
supplies exceeds or is expected to exceed such amount, the supplier
shall apply for tax registration .
Voluntary
Registration
Threshold : An amount specified in this Resolution and if the value of taxable
supplies or taxable expenses exceeds or is exp ected to exceed such
amount, the supplier may apply for tax registration .
Transport -Related
Services : Transport, packaging and securing of cargo; preparation of customs
documents; container management services and loading, Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 5
unloading, storage and movement of goods, or any other services
that are closely related or necessary for the completion of transport
services .
Business
Establishment : The place where the business is legally established in a country, in
accordance with its establishment decision and where important
management decisions are taken or the functions of the business’
central administration are carried out .
Fixed
Establishment : Any fixed place of business other than the business establishment,
through which the person conducts its business on a regular or
permanent basis, and which has the sufficient human and technical
resources necessary to enable it to supply or receive goods or
services and includes the person’s branches .
Place of Residence : The place where a person has a business establishment or fixed
establishment, in accordance with the provisions of the Decree -
Law .
Non -Resident
Person : Any person that has no business establishment or fixed
establishment in the State and usually does not reside therein .
Related Parties : Two or more persons that are not economically, financially or
organizationally separated, where one can control the others either
by law or by acquisition of shares or voting rights.
Designated Area : Any area identified by a Cabinet Resolution issued upon the
proposal of the Minister, as a designated area for the purposes of
the Decree -Law .
Exportation : The departure of the goods from the State or providing the services
to a person whose business establishment or fixed establishment is
outside the State, including direct and indirect exportation . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 6
Direct
Exportation : An exportation of goods to a destination outside the applying states,
in which the supplier is responsible for arranging transport or
appointing an agent to act on his behalf in this regard .
Indirect
Exportation : An exportation of goods to a destination outside the applying states,
where the overseas customer is responsible for arranging the
receipt of goods from the supplier in the State and export ing the
goods or appointing an agent to act on his behalf in this regard .
Oversees
Customer : A recipient of goods who does not have a business establishment or
fixed establishment in the State, does not reside in the State, and
does not have a tax registration number.
Voucher : Any instrument entitling the holder to receive goods or services
against the value stated thereon or to obtain a discount on the price
of the goods or services and it does not include postage stamps
issued by the Emirates Post Group .
Capital Assets : Business assets designated for long -term use.
Capital Assets
Scheme : A scheme whereby the input tax initially refunded is adjusted based
on the actual use during a specific period .
Administrative
Fines : Amounts to be imposed on the person by the Authority for violating
the provisions of the Decree -Law and Federal Law No. (7) of 2017
on Tax Procedures .
Tax Group : Two or more persons registered at the Authority as a single taxable
person for the tax purposes in accordance with the provisions of the
Decree -Law .
Notification : Notifying the concerned person or his tax agent or legal
representative of the decisions issued by the Authority through the
means provided for in Federal Law No. (7) of 2017 on the Tax
Procedures . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 7
Tax Evasion : The use of illegal means by a person, which causes reducing the
amount of the due tax, the non -payment thereof, or the refund of a
tax that such person is not entitled to refund in accordance with the
provisions of the De cree -Law .
Decree -Law : Federal Decree -Law No. (8) of 2017 Concerning the Value -Added
Tax (VAT).
Part Two
Supply
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (2)
Supply of Goods
1. The transfer of ownership of goods or the right to dispose thereof from one person to another
shall include , inter alia :
a. Transfer of ownership of goods under a written or verbal agreement for any sale;
b. Transfer of ownership of goods for a consideration in a compulsory manner in accordance
with the applicable legislation.
2. For the purposes of Clause (1) of this Article, the transfer of the right to dispose of any assets
shall not be deemed a supply of goods unless the other person is able to dispose there of as an
owner.
3. Concluding a contract between two parties , whereby the ownership of g oods shall be
transferred at a later time , shall be deemed a supply of goods if the contract provides for a
transfer or intention to transfer the ownership o f goods or a future transfer of ownership of
goods.
4. The following shall be deemed a supply of goods:
a. Supply of water .
b. Supply of real properties, including any sale and lease contract . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 8
c. Supply of all forms of energy, includ ing electricity and gas, including biogas, coal gas,
liquefied petroleum gas, natural gas, oil gas, producer gas, refinery gas, reformed natural
gas, and tempered liquefied petroleum gas, and any mixture of gases, whether used for
lighting, heating, cooling, air conditioning or any other purpose.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (3)
Supply of Services
1. Each supply not considered a supply of goods shall be treated as a supply of services, including
any of the following:
a. Granting, assignment, cessation, or surrender of a right .
b. Providing a facility or advantage .
c. Refraining from engaging in any activity, or not allowing the occurrence of, any activities,
or agreeing to carry out any activity.
d. Transferring an indivisible share in good s.
e. Transferring or licensing intangible rights, such as rights of authors, inventors and artists,
trademarks ’ rights , and rights deemed by the legislation of the State to be within such
category.
2. Notwithstanding the provision of Clause (1) of this article, the duties of a board member
performed by a nat ural person who is appointed a board member in any of the government
agencies or a private sector establishment shall not be considered a supply of services.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (4)
Supply Composed of More Than One Component
1. If a person makes a supply composed of more than one component for a single price , such
person shall determine whether the supply constitutes a single composite supply or multiple
supplies. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 9
2. The phrase “single composite supply” means any supply of goods or services , where the
supply has more than one component, taking into account the contract and circumstances of
the supply as a whole .
3. Any supply shall be considered a single composite supply in the following cases:
a. If the supply includes all of the following:
1. A principa l component .
2. A component or components essential or necessary to the supply , including incidental
elements which naturally accompany the supply , but generally are not a significant part
of it , or do not constitute an aim in themselves , but a means of bette r enjoying the
principal supply.
b. If the supply comprises two or more elements so closely linked as to form a single
indivisible supply which it would be artificial to split .
4. A single composite supply may occur under Clause (2) of this Article if all of the following
conditions are met:
a. The supplier shall not define or charge t he price of the different components of the supply
separately .
b. All components of the supply shall be supplied by a single supplier .
5. If a taxable person supplies more than one component for a single price and the supply is not
a single composite supply, then the supply of the components shall be deemed multiple
supplies.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (5)
Exceptions from the Deemed Supply
1. The supply shall not be regarded as deemed supply in any of the following cases:
a. If the amount of the input tax for the related goods and services is not refunded.
b. If the supply is exempt from the tax. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 10
c. If the refunded input tax on the goods and services is adjusted in a ccordance with the
Capital Assets Scheme.
d. If the value of the supply of goods, for each recipient during the period of twelve months,
does not exceed (AED 500) five hundred dirhams and the supply is intended to use such
goods as samples or commercial gift s.
e. If the total output tax payable for all the deemed supplies per person for the period of
twelve months is less than (AED 2,000) two thousand dirhams .
2. For the purposes of Paragraphs (d) and (e) of Clause (1) of this Article, the period of twelve
months is the period which expires by the end of the month in which the person makes a
supply referred to in either of the Clauses.
Part Three
Registration
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (6)
Application for Registration
For the purposes of mandatory or voluntary registration, the application for tax registration shall
contain all information requested by the Authority and shall be submitted through the means
specified by the Authority.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (7)
Mandatory Registration
1. The Mandatory Registration Threshold shall be (AED 375,000 ) three hundred , seventy -five
thousand dirhams.
2. The person required to register for tax in accordance with the provisions the provisions of the
Decree -Law shall submit the application for tax registration to the Authority within (30) days
as of the date of being required to register. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 11
3. If the person required to register for tax does not submit the application for tax registration ,
the Authority shall register such person with effect fro m the date of being required to register
and shall impose the relevant penalties thereon in accordance with Federal Law No. (7) of
2017 on Tax Procedures.
4. If supplies made by a person exceed, in accordance with the Decree -Law, the Mandatory
Registration Threshold during the previous twelve -month period, the Authority shall register
the person with effect from the first day of the month following the month in which the
person is obligat ed to register, whether or not such person applies for tax registration , or from
such earlier date to be agreed upon between the Authority and the person .
5. If a person expects that the supplies thereof , in accordance with the Decree -Law, will exceed
the Ma ndatory Registration Threshold during the next (30) thirty days , the Authority shall
register such person with effect from the date on which there are reasonable grounds for
believing that the person will be required to register as set forth in this Clause, whether or not
the person notifies the Authority of the obligation to register for tax, or from such earlier date
to be agreed upon between the Authority and the person .
6. If a person who does not have a place of residence in the State is required to register in
accordance with the provisions of the Decree -Law, the Authority shall register him for tax
with effect from the commencement date of making supplies in the State, whether or not the
person notifies the Authority of the obligation to register for tax, or from such earlier date to
be agreed upon between the Authority and the person .
7. A taxable person who delays the registration for tax purposes in accordance with the
provisions of this Article shall be liable for calculating and paying to the Authority the due tax
on all taxable supplies and imports made there by before being registered .
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 12
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (8)
Voluntary Registratio n
1. The Voluntary Registration Threshold shall be (AED 187,500 ) one hundred eighty -seven
thousand five hundred dirhams.
2. If a person applies for the tax registration voluntarily in accordance with the provisions of the
Decree -Law, the Authority shall register such person with effect from the first day of the
month following the month in which the application is submitted , or from such earlier date
as may be requested by the person and approved by the Authority.
3. If a person applies for the tax registration volu ntarily based on his expectation that the
supplies thereof, in accordance with the Decree -Law, will exceed the Voluntary Registration
Threshold during the next (30) thirty days , such person shall provide evidence of making
taxable supplies or incurring taxable expenses which exceed the Voluntary Registration
Threshold .
4. The Authority shall determine the evidence it deem s necessary to ensure the person’s
eligibility for voluntary tax registration .
5. For the purpose s of voluntary tax registration, the phrase “Taxable Expenses” means expenses
which are subject to the standard rate and incurred in the State by a person who has a place
of residence in the State.
6. No person shall register voluntarily unless he provides the Authority with evidence that he
practices a business in the State.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (9)
Related Parties
1. For the purposes of the t ax group provisions, the definition of “Related Parties ” shall relate to
two legal persons in cases such as:
a. One or more persons practicing the business in a partnership and having any of the
following: Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 13
1. Voting right s in each of th e legal persons of 50% or more .
2. Market value interest in each of the legal persons of 50 % or more .
3. Control over each of the legal persons in any other way .
b. Each of persons is a related party with a third person.
2. Two or more persons shall be deemed related parties if they are economically, financially, or
organizationally related , taking into account the following:
a. Economic practices, which shall include at least one of the following:
1. Achieving a common commercial objective .
2. One person’s business benefiting another person’s business .
3. Supplying goods or services by businesses of different persons to the same
customer s.
b. Financial practices, which shall include at least one of the following:
1. Financial support provided by one person’s business to another person’s business .
2. One person’s business not being financially viable without another person’s
business .
3. Common financial interest s in the proceeds.
c. Organizational practices, which shall include any of the following:
1. Common management .
2. Common employees whether or not jointly employed .
3. Common shareholders or common economic ownership.
3. For the purposes of this Article:
a. “Market value interest” in a legal person means the ratio of the total market value of shares
and options owned by a person to the total market value of all shares in the legal person.
b. Any shareholding shall be disregard ed if there is another agreement, which contradicts
the same . In such case, the adjusted value in the shareholding shall be calculated in
accordance with the other agreement.
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 14
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (10)
Registration as Tax Group
1. A tax group shall nominate one of its registered members to act as the representative member
of such tax group.
2. An application for register ing a tax group shall be submitted by the representative member of
such tax group.
3. The Authority shall decide on any application for registration of two or more persons as a tax
group within 20 working day s as of the date of receipt of the application.
4. If an application for forming a new tax group is approved, the registration of such tax group
shall be valid accordi ng to the following:
a. From the first day of the tax period following the tax period during which the application
is received .
b. From any date as determined by the Authority.
5. The Authority may reject the application for registration as a tax group in any of the following
cases:
a. If the person s fail to meet the conditions prescribed for applying for registration as a tax
group in accordance with the provisions of the Decree -Law and article (9) of this
Resolution .
b. If there are serious grounds for believing that if the registration as a tax group is permitted,
it will enable tax evasion , or significantly decrease tax revenues of the Authority or
increase the administrative burden on the Authority .
c. If any of the person s included in the application is not a legal person.
d. If one of the person s is a government agency in accordance with article (10) and (57) of
the Decree -Law and the other person is not.
e. If one of the person is a charity in accordance with article (57) of the Decree -Law and the
other person is not. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 15
6. The Authority may reject an application for adding a person to a tax group if such person does
not meet the conditions prescribed for applying for registration as a tax group in accordance
with the provisions of the Decree -Law or for the reasons mentioned in Clause (5) of this
Article.
7. If the Authority finds that two or more persons are in association as a result of their economic,
financial and organizational practices in business, the Authority may register them as a tax
group after considering the circumstance s of each case, including the presence of the factors
mentioned in Clause (2) of article (9) of this Resolution .
8. The Authority may only register a person within a tax Group in accordance with Clause (7) of
this Article if the two following conditions are met:
a. The business of such person shall include making taxable supplies or importing relevant
goods or relevant services .
b. All the taxable supplies or imports of relevant goods or relevant services of the business
by persons practicing the business shall exceed the Mandatory Registration Threshold.
9. The Authority may r eject the application for registration as a tax group if there are serious
reasons to suggest that such registration will significantly decrease the t ax revenue s.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (11)
Amendment to Tax Group
1. The representative member appointed in accordance with article (10) of this Resolution shall
be entitled to apply to the Authority for any of the following:
a. Add ing another person to be a member of the tax group ;
b. Remov ing any member of such tax group ;
c. Nominat ing another member of the tax group to be the representative member after
obtaining the approval of the other member ;
d. Canceling the registration of the tax group. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 16
2. For the purposes of Clause (1) of this Article, the Authority shall be entitled to accept any
applications from either:
a. The first day of the tax period following the tax period during which the application is
received;
b. Any date as determined by the Authority.
3. Any notification sent by the Authority to the representative member of any tax group shall be
deemed to be served on the representative member and all other members of the tax group.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (12)
Effect of Tax Group Registration
1. The registration of persons as a tax group shall result in the following:
a. Any business practiced by a ny member of the tax group shall be deemed to be practiced
by the representative member and not by any other member of such tax group.
b. Any suppl ies made by a member of the tax group to another member of the same tax
group may be disregarded.
c. Any supply, whether or not taxable, made by a member of the tax group shall be deemed
to be made by the representative member.
d. Any import of relevant goods or relevant services made by a member of the tax group shall
be deemed to be made by the representative member.
e. Any supply of goods or services made for the benefit of a member of the tax group by a
person who is not a member of the tax group shall be deemed a supply to the
representative member.
f. Any output tax charged by a member of the tax group shall be deemed to be charged by
the representative member.
g. Any input tax incurred by a member of the tax group shall be deemed to be incurred by
the repres entative member. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 17
2. For the purposes of Clause (1) of this Article, all members of the tax group shall be personally
and jointly liable for any payable taxes of the representative member.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (13)
Aggregation of Related Parties
1. If it is found that two or more persons are in association as a result of their economic, financial
and organizational practices in the b usiness in accordance with Clause (2) of article (9) of this
Resolution , and such persons are not registered as a tax group and artificially segregate their
business, the value of the taxable supplies of each person shall be aggregated to determin e
whether they both have exceeded the Mandatory Registration Threshold and Voluntary
Registration Threshold.
2. If the business is not segregated artificially but the Authority finds that there is a shortfall in
tax revenues as a result of the segregation of such business , the Authority may aggregate the
taxable supplies of each of the person s to determine whether the total taxable supplies have
exceeded the Mandatory Registration Threshold and Voluntary Registration Threshold.
3. If any of the cases set forth in Clause (1) or (2) of this Article occurs , each of the person s shall
be treated as making taxable supplies made by the other related parties and shall apply for
tax registration if the Mandatory Registration Threshold is exceeded in accordance with the
provisions of the Decree -Law.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (14)
Cancellation of Tax Registration
1. The registrant shall submit an application for cancellation of tax registration in accordance
with the cases set forth in the Decree -Law, within (20) working day s as of the date of
occurrence of any of them.
2. The Authority shall approve the application for cancellation of tax registration submitted by
the registrant when the two following conditions are met: Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 18
a. The registrant ceases to mak e supplies referred to in article (19) of the Decree -Law and
does not expect to make any such supplies during the next 12 month s.
b. The value of supplies referred to in article (19) of the Decree -Law made by the registrant ,
or the taxable expenses incurred thereby , during the preceding twelve months is less than
the Voluntary Registration Threshold and the Authority believes that the value of supplies
of such registrant , in accordance with the provisions of the Decree -Law, or the taxable
expenses expected during the next (30) days, is not expected to exceed the Voluntary
Registration Threshold.
3. If the application for cancellation of tax registration is approved, the Authority shall cancel the
tax registration of the registrant as of the last day of the tax period during which the registrant
has met the conditions for cancellation of tax registration or from such other date as may be
determined by the Authority.
4. If the Authority finds that the conditions set forth in Clause (2) of th is Article are met, and the
registrant does not apply for cancellation of tax registration , the Authority shall cancel the tax
registration of the registrant from the last day of the tax period during which the Authority
finds that the conditions have been met or from any other date as may be determined by the
Authority.
5. The tax registration of the registrant shall not be cancelled unless such registrant pays the total
tax and administrative fines due therefrom and submits all the t ax returns as required under
the Decree -Law and Federal Law No. (7) of 2017 on Tax Procedures.
6. For the purposes of Clause (5) of this Article, any goods and services forming part of assets of
the b usiness practiced by the registrant shall be deemed to be supplied by such registrant
immediately before the cancellation of his tax registration and he shall include the payable
tax in the final tax return, unless the business is practiced by a bankruptcy trustee in
accordance with the pro visions of Federal Law No. (7) of 2017 on Tax Procedures.
7. If the registrant applies for cancellation of tax registration due to the reduction of his taxable
supplies to less than the Mandatory Registration Threshold, the Authority shall cancel the tax
registration , if it approves the application , with effect from: Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 19
a. The date specified by the registrant in the application; or
b. The submission date of the applicati on if the registrant does not specify the date of
cancellation of tax registration in his application .
8. If the Authority cancels the tax registration of the registrant , it shall notify the registrant of the
effective date of cancellation of tax registration within (10) working day s as of the issuance
of the cancellation decision .
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (15)
Cancel ing the Registration of Tax Group or Amendment Thereof
1. The Authority shall cancel the registration of any tax group if the following conditions are met:
a. If the person s registered as a tax group no longer meet the conditions for their registration
as a tax group in accordance with the Decree -Law.
b. If there is no longer an association based on their economic, financial and organizational
practices.
c. If there are serious reasons for believing that permitting the continuance of the
registration as a tax group would enable the t ax evasion or significantly reduce the tax
revenues of the Authority.
2. The Authority shall amend the composition of a tax group in any of the following cases :
a. A member shall be removed from a tax group if such member meets the conditions set
forth in Clause (1) of this Article .
b. A member shall be added to a tax group if the Authority believes that the activities carried
out by a person are deemed as part of the business practiced by the tax group in
accordance with Clause (7) of article (10) of this Resolution .
3. The representative member of a tax group shall notify the Authority in case that any member
is no longer eligible to be part of the tax group , within (20) working day s as of the date of
being non -eligible . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 20
4. If the Authority decide s to cancel or amend the registration of a tax group , it shall give
notification of such decision and its effective date to the representative member within (10)
working day s as of the date of such decision.
5. If a taxable person is no longer a member of a tax group , the Authority shall assign a new tax
registration number to such person or re -activate the tax registration number thereof before
joining the tax group and shall treat the same as a registrant immediately following the
withdrawal from the tax group .
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (16)
Exception from Registration
1. Any taxable person wishing to apply for an exception from tax registration based on that all
of his supplies are zero -rated, shall submit an application to the Authority on the form and by
the means determined by the Authority.
2. The Authority shall scrutinize the application for exception from registration and it may
approve the exception from tax registration or notify the taxable person of rejection of his
application .
3. Any person excepted from tax registration shall notify the Authority if he makes any supplies
or imports of goods or services that are taxable at the standard rate.
4. The person shall give the notice provided for in Clause (3) of this Article within no more than
(10) working day s as of the date of making the supply or import that is taxable at the standard
rate.
5. If the person no longer meets the condition of exception from the tax registration, he shall be
obligated to register for the tax.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (17)
Registration upon Entry into Force of the D ecree -Law
1. A person who will be taxable on the date of entry into force of the Decree -Law, shall apply for
tax registration prior to such date according to the dates as announced by the Authority. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 21
2. The effective date of registration of the taxable person shall be 1 January 2018, if such person
notifies the Authority of his obligation to register for the t ax in accordance with Clause (1) of
this Article.
3. If a person registers for the t ax prior to the date of entry into force of the Decree -Law, such
person shall have the same rights and be subject to the same obligations as if he had registered
for the tax after the date of entry into force of the Decree -Law.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (18)
Obligations before Cancellation of Tax Registration
The c ancellation of tax registration shall not exempt a person from his obligations and liabilities
stipulated in the Decree -Law that were applicable while he was still a registrant .
Part Four
Rules on Supplies
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (19)
Due Tax at the Date of Supply
For the purposes of Articles (25), (26) and (80) of the Decree -Law, if the t ax is due because a
payment is made or a tax invoice is issued in respect of a supply of goods or services , the tax shall
be due to the extent of the payment made or stated in the tax invoice, and the remaining amount
of the d ue tax on such supply shall be payable in accordance with the provisions of the Decree -
Law.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (20)
Place of Supply of Goods Delivered within the State Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 22
In the event that the supply of goods requires that such goods exit and re -enter the State during
being transported from one location to another within State, the goods shall not be treated as
exported or imported if all the following conditions are met:
a. If the exit from and re -entry into the State takes place in the course of a journey between two
points with in the State.
b. If there is no significant break in the transport of goods whil e existing outside the State, and
any break is limited to what is reasonably expected in the course of normal transport of goods .
c. If the goods are not unloaded from the relevant means of transport whil e being o utside the
State.
d. If the goods are not consumed, suppli ed, or subject to any process while being outside the
State .
e. If the nature, quantity, or quality of the goods does not change as a result of exiting and re -
entering the State.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (21)
Place of Supply of Services Related to Real Properties
1. For the purposes of the Decree -Law and this Resolution , the “real property ” shall include for
example:
a. Any piece of land upon which rights , interests or services can be created ;
b. Any building, structure or engineering work permanently attached to the land ;
c. Any fixture or equipment established as a permanent part of the land or permanently
attached to the building, structure or engineering work.
2. A supply of services shall be deeme d as related to a real property if the supply of services is
directly connected with the real property , or it is the grant of a right to use the real property .
3. A supply of services directly connected with the real property shall include the following :
a. Grant, transfer or assignment of any interest in or right over a real property ; Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 23
b. Grant, transfer or assignment of a person al right to any interest in or right over a real
property ;
c. Grant, transfer or assignment of a license to occupy land or any other contractual right
exercisable over or in relation to a real property , including the provision and lease of
sleeping accommodation in a hotel or similar establishment ;
d. A supply of services by real estate experts or agents ;
e. A su pply of services involving the preparation, coordination and performance of
construction, destruction, maintenance, conversion and similar work.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (22)
Place of Supply of Certain Transport Services
1. The place of the supply of each transport service shall be the place where the supply of such
transport service commences, if the trip includes more than one stop and includes multiple
supplies in accordance with Clause (5) of article (4) of this Resolution .
2. The place of supply of transport -related services shall be the same as the pl ace of supply of
the transport service to which they relate.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (23)
Telecommunication and E-Services
1. “Telecommunication Services” means transmitting , broadcasting, converting or receiving any
of the services listed below by using any communications equipment or devices that transmit,
broadcast, convert, or receive such service s by electrical, magnetic, electromagnetic,
electrochemical or electromechanical means any other means of communication, including:
a. Wired and wireless communications ;
b. Voice, music and other sounds;
c. Visual images; Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 24
d. Signals used in broadcasting except for public broadcasts ;
e. Signals used for operat ing and control ling any machinery or devices ;
f. Services of an equivalent type which have a similar purpose and function.
2. “E-services” means services which are offered directly via the internet, an electronic n etwork,
or an electronic marketplace, including:
a. Supply of web domain s, web -hosting and remote maintenance of programs and
equipment;
b. Supply and updating of software;
c. Supply of images, text, and information electronically such as photos, screensavers,
electronic books and other digital documents and files;
d. Supply of music, films and games on demand;
e. Supply of online magazines;
f. Supply of advertising space on a website and any rights associated with such advertising;
g. Supply of political, cultural, arti stic, sporting, scientific, educational or entertainment
broadcasts, including broadcasts of events;
h. Live streaming via the internet;
i. Supply of distance learning services ;
j. Services of an equivalent type which have a similar purpose and function.
3. “Elect ronic Marketplace” means a distribution service to be operated by electronic means,
including by a website, internet portal, gateway, store, or distribution platform, and provided
that the following conditions are met :
a. It shall allow suppliers to supply e-services to customers.
b. The supplies made by the electronic marketplace shall be made by electronic means.
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 25
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (24)
Evidence of Certain Supplies among the Applying State s
1. If a taxable person makes a supply of goods from the State to a person who has a place of
residence in another applying state , and the supply requires the goods to be actually moved
to such other applying state , the taxable person shall retain official and commercial evidence
of exportation of such goods to such other applying state .
2. The Authority may requests from a taxable pe rson who supplies goods or services to another
applying state to collect and retain any evidential information as well as what is stated in
Clause (1) of this Article, and provide the same by the means determined by the Authority.
3. The Customs Departments shall confirm the type and quantity of the exported goods with the
export ation d ocuments issued by them .
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (25)
Market Value
1. “Similar Supply”, with respect to the supply of goods or services , means any other supply of
goods or services which is similar to or substantially resembles , in respect of the
characteristics, quality, quantity, functional components, materials, and reputation, such
supply of goods or services .
2. The market value of a supply of goods or services at a given date shall be deemed the cash
consideration which the supply would generally achieve if supplied in similar circumstances
at such date in the State, being a supply freely offered and made between persons who are
not in association in any manner.
3. If the market value of a supply of goods or services at a given date cannot be determined as
stipulated in Clause (2) of this Article, the market value shall be the cash consideration which
a similar supply would achieve if supplied in similar circumstances at such date in the State,
being a supply freely offered and made between persons who are not in association in any
manner . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 26
4. If it is not possible to determine the market value of a supply of goods or services as stipulated
in Clauses (2) and (3) of this A rticle, the market value shall be determined by reference to the
replacement cost of identical goods or services , provided that such supply is offered by a
supplier who is not in association with the recipient of goods or recipient of services in any
manner.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (26)
Apportionment of Single Consideration
For the purposes of Clause (4) of article (34) and article (47) of the Decree -Law, if the
consideration payable to the taxable person relates to a supply of goods or services and matter s
other than the supply of goods or services , or to two different supplies of goods or services , the
taxable person shall specify the portion of the consideration that represents the market value of
each part of the supply in accordance with the provisions of article (25) of this Resolution .
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (27)
Tax Exclusive Price
1. The declared prices shall be inclusive of tax i n case of the taxable supply .
2. Notwithstanding the provisions of Clause (1) above, the taxable person may declare tax-
exclusive prices in the following cases:
a. Supply of goods or services for exportation ;
b. If the customer is a registrant .
3. If the declaration of prices as being exclusive of tax applies in accordance with Clause (2) of
this Article, the price shall be explicitly identified as being exclusive of tax.
4. Notwithstanding the provisions of Clause (1) above, the taxable person shall declare the price
as being exclusive of tax in the following cases:
a. Supply of relevant goods or relevant services to which the provisions of Clause (1) of
article (48) of the Decree -Law apply . Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 27
b. Supply of taxable goods in accordance with Clause (3) of article (48) of the Decree -Law.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (28)
Discounts , Subsidies and Vouchers
1. The State shall not be treated as providing a subsidy to the supplier if the subsidy or part
there of is a consideration for a supply of goods or services to the State.
2. The value of supply may be reduced in the case of a discount if the following conditions are
met:
a. The customer benefits from the reduction in price.
b. The supplier fund s the discount.
3. The value of a discount shall be the amount by which th e consideration is reduced.
4. The value of a discount shall not include the value of any voucher used, and any such
reduction shall be disregarded unless the voucher is provided for no consideration.
5. If the supplier issues and sells a voucher for considera tion that is less than the value stated on
the voucher, the value of discount shall be the difference between the value of the voucher
and the consideration paid for such v oucher.
6. The “Voucher” shall not include an instrument that gives the right to recei ve goods or services
or the right to receive a discount on the price of the goods or services unless the cash value
for which the voucher may be redeemed is identified when issuing the voucher .
Part Five
Profit Margin Scheme
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (29)
Levying the Tax based on the Profit Margin
1. The taxable person may calculate and charge the tax on any taxable supplies on the basis of
the profit margin in the following cases : Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 28
a. If the taxable person makes a supply of goods set out in Clause (2) of this Article after
having been purchased from any of the following :
1. A person who is not a registrant .
2. A taxable person who has calculated the tax on the supply on the basis of the profit
margin.
b. If the taxable person makes a supply of goods for which the i nput tax has not been
refunded in accordance with article (53) of this Resolution .
2. The goods set forth in Clause (1) of this Article mean goods that have been taxed before the
supply which shall be subject to the profit margin scheme and such goods are:
a. Used goods ; i.e. tangible moveable property suitable for further use as it is or after repair.
b. Antiques ; i.e. goods that are over 50 years old.
c. Collectors' items , including stamps, coins and paper money and other items of scientific,
historical or archaeological importance .
3. A taxable person may not calculate and charge the tax on the basis of the profit margin in
respect of goods stated in Paragraph (a) of Clause (1) of this Article if a tax invoice or other
document i s issued for such supply and the amount of the tax levied on the supply is
mentioned in the tax invoice or the document .
4. The profit margin shall be the difference between the purchase price of the goods and the
selling price there of, and shall be deemed to be inclusive of the tax.
5. Any taxable person shall keep the records mentioned below in respect of the supplies made
in accordance with this Article:
a. A stock book or similar record s showing details of each good s purchased and sold under
the profit margin scheme ;
b. Purchase invoices showing details of the goods purchased under the profit margin
scheme. If the goods are purchased from non -registrant p ersons, the taxable person shall
issue an invoice showing details of the goods himself, whi ch shall contain at least the
following information:
1. Name, address and tax registration number of the taxable person ; Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 29
2. Name and address of the person selling the good s;
3. Date of the purchase ;
4. Details of the goods purchased ;
5. Consideration payable in respect of the goods ;
6. Signature of the seller of the goods or his authorized signatory.
6. If a taxable person charge s a tax on a supply on the basis of the profit margin, such taxable
person shall issue a tax invoice which explicitly states that the tax is charged on the basis of
the profit margin, in addition to all other information to be mentioned in the tax invoice
except for the tax amount .
Part Six
Zero -Rated Supplies
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (30)
Applying the Zero Rate to the Exportation of Goods
1. The direct exportation shall be subject to the zero rate if the following conditions are met:
a. The goods are physically moved to a place outside the applying state s or are put under a
customs suspension scheme in accordance with the GCC Common Customs Law , within
ninety (90) days as of the date of supply.
b. The exporter shall maintain o fficial and commercial evidence of exportation or customs
suspension.
2. The indirect exportation shall be subject to the zero rat e if the following conditions are met:
a. The goods are physically moved to a place outside the applying state s or are put under a
customs suspension scheme in accordance with the GCC Common Customs Law, within
ninety (90) days as of the date of supply in accordance with arrangement s to be agreed
upon by the supplier and the overseas customer at or before the date of supply Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 30
b. The overseas customer shall obtain official and commercial evidence of exportation or
customs suspension in a ccordance with the GCC Common Customs Law, and provide a
copy thereof to the supplier.
c. The goods shall not be used or altered during the period between the supply and
exportation or customs suspension, except to the extent necessary to prepare the goods
for exportation or customs suspension.
d. The goods shall not leave the State in the possession of a passenger or crew member of
an aircraft or ship.
3. For the purposes of this Articl e, moving goods to a designated area from a place in the State
or a supply of goods to a designated area shall not be deemed an exportation of such goods.
4. For the purposes of Clauses (1) and (2) of this Article:
a. “Official evidence” means the e xportation documents issued by the local customs
departments in the emirate in respect of goods leaving the State.
b. “Commercial evidence” shall include any the following:
1. Air waybill (AWB);
2. Bill of lading ;
3. Consignment note ;
4. Certificate of shipment .
5. The evidence of exportation , whether official or commercial, shall identify the following:
a. The supplier ;
b. The consignor ;
c. The goods ;
d. The value ;
e. The exportation destination ;
f. The means of transport and route of the exported goods .
6. The Authority may identify other types of evidence according to the nature of the exportation
or the nature of the goods to be exported. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 31
7. The Authority may extend the period of (90) days set out in Clauses (1) and (2) of this Article,
upon a written request of the suppl ier, if the Authority finds that any of the following occurs :
a. There are c ircumstances beyond the control of the supplier and the recipient of goods
which have prevent ed, or may prevent, the exportation of the goods within ninety (90)
days as of the date of supply .
b. The goods or a class of the goods cannot be exported d ue to the nature of the supply,
within ninety (90) days as of the date of supply .
8. The indirect exportation shall include a supply of goods in a departure area of an airport or
port to a passenger of an aircraft or ship if:
a. The goods leave the State in the possession of the passenger.
b. The supplier obtain s and retain s evidence , such as the details of the boarding pass of the
passenger, that the passenger intends to depart for a destinat ion outside the applying
state s.
9. If the person obligated to e xport the goods under this Article does not do so within the period
of (90) days or a longer period approved by the Authority under Clause (7) of this Article, the
tax shall be levied on the supply at the rate that would have been due on the supply if made
in the State.
10. For the purposes of this Article , any supply of goods shall be subject to the zero rate if the
goods intended for exportation are destroyed or cease to exist due to circumstances beyond
the control of both the supplier and the recipient of goods .
11. The Customs Departments shall check to confirm the type and quantity of the exported goods
with their exportation documents.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (31)
Applying the Zero Rate to the Exportation of Services
1. The exportation of services shall be subject to the zero rate in the following cases.
a. If the following conditions are met: Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 32
1. The services are supplied to a recipient of services who has no place of residence in
any applying state and is outside the State when the services are performed .
2. The services are not supplied directly in connection with real propert ies situated in the
State or any improvement to such real propert ies or directly in connection with
moveable personal assets situated in the State when the services are performed.
b. If the services are actually performed outside the applying states or are the arrangement
of services that are actually performed outside the applying state s.
c. If the supply includes the provision of outbound tour packages, for the part relating to
such service.
2. For the purpose s of Paragraph (a) of Clause (1) of this Article, a per son shall be deemed as
being “outside the State” if his presence is only for a short period of less than one month and
if his presence in the State is not effectively connected with the supply.
3. Notwithstanding the provisions of Paragraph (a) of Clause (1) of this Article, a supply of
services shall not be zero -rated, if the supply is made under an agreement entered into,
whethe r directly or indirectly, with a non -resident r ecipient of services if all of the following
conditions are met:
a. The performance of services is, or it is reasonably foreseeable at the time of entering into
the agreement that the performance of services will be, received in the State by another
person, including but not limited to, an employee or a manager of the non-resident
recipient of services .
b. It is reasonably expected , at the time of entering into the agreement , that other person in
the State will receive the services in the course of making supplies for which the i nput tax
may not be refundable in full in accordance with article (54) of the Decree -Law.
4. For the purposes of Paragraph (c) of Clause (1) of this Article, service s that include the
“provision of outbound tour packages” mean the services that a taxable person provides in
packaging one or more tourism products and also services outside the applying state s,
including goods and services such as accommodation, meals, tr ansport, and other activities.
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 33
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (32)
Applying the Zero Rate to the Exportation of Telecommunications
Services
1. The exportation of telecommunications services shall be subject to the zero rate in the
following cases :
a. A supply of telecommunications services by a telecommunications supplier who has a
place of residence in the State to a telecommunications supplier who has place of
residence outside the applying state s.
b. A supply of telecommunications services initiated outside the applying states by a
telecommunications supplier who has a place of residence in the State to a person who is
not a telecommunications supplier and has a place of residence outside the State.
2. For the purposes of Paragraph (b) of Clause (1) of this Article, the place wher e a supply is
initiated shall be identified according to the following:
a. The place of the person who initiates the supply.
b. If Paragraph (a) of this Clause does not apply, the person who pays for the services .
c. If Paragraphs (a) and (b) of this Clause do not apply, the person who contracts for the
purposes of the supply .
3. For the purposes of this Article, the “telecommunications supplier” means a person whose
main activity is the supply of telecommunications services.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (33)
Applying the Zero Rate to International Transport Services for Passengers and
Goods
1. The supply of international transport services for passengers and goods and transport -related
services shall be subject to the zero rate in the following cases: Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 34
a. Services of t ransporting passengers or goods from a place in the State to a place outside
the State .
b. Services of transporting passengers or goods from a place outside the State to a place in
the State .
c. Services of transporting passengers from a place in the State to another place in the State
by sea , air or land as part of a supply of an international transport of such passengers if
the first place of departure and/ or the final destination is outside the State.
d. Services of transporting goods from a place in the State to another place in the State if the
services are supplied as part, or for the purpose, of the supply of services of transporting
goods either from a p lace in the State to a place outside the State or from a place outside
the State to a place in the State.
2. The following goods and services shall be zero -rated if they are supplied in respect of the
transport services for passengers or goods in accordance with the provisions of Clause (1) of
this Article or treated as taking place outside the State:
a. Goods which are supplied for use , consumption or sale by or on an aircraft or ship .
b. Services provided during the supply of transport services .
c. Service s of insurance , arranging the insurance, or arranging the transport of passengers or
goods .
3. A supply of postage stamp s issued by the Emirates Post Group shall be zero -rated where the
postage stamp may only be used or redeemed for transportation of goods to a p lace outside
the State.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (34)
Applying the Zero Rate to Certain Means of Transport
The supply of means of transport shall be subject to the zero rate in the following cases:
1. A supply of an aircraft which is designed or adapted to be used for commercial transport of
passengers or goods and not designed or adapted for recreation, pleasure or sports ; Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 35
2. A supply of a ship, boat or floating structure which is designed or adapted for use for
commercial purposes an d not designed or adapted for recreation, pleasure or sports.
3. A supply of bus or train which is designed or adapted to be used for public transport of (10)
or more passengers.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (35)
Applying the Zero Rate to Goods and Services Related to the Supp ly of Means
of Transport
1. Goods and services related to the supply of means of transport set forth in article (34) of this
Resolution shall be subject to the zero rate if they are any of the following:
a. Goods, except for fuel or other oil or gas products, that are supplied in the course of
operating, repairing, maintaining or converting means of transport in any of the following
cases:
1. The goods are incorporated into, affixed to, attached to or form part of such means of
transport.
2. The goods are used directly as consumable goods in the operation, repair,
maintenance, or conversion process and become unusable or worthless as a result of
such use .
b. Services which are supplied directly in connection with means of transport referred to in
article (34) of this Resolution for the purposes of operating, repairing, maintaining, or
converting such means of transport.
c. Services which are supplied directly in connection with parts and equipment of means of
transport referred to in article (34) of this Resolution for the purpose of repairing and
maintaining such parts and equipment, provided that any of the following conditions is
met :
1. The services are performed on board the means of transport. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 36
2. The part or equipment is removed for repair or maintenance and is subsequently
reinstalled in the same means of transport.
3. The part is removed for repair or maintenance and is subsequently held in s tock for
the future use as a spare part in the same means of transport or another means of
transport.
4. The part cannot be repaired and is replaced by a similar part.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (36)
Applying the Zero Rate to Precious Metals
1. The supply or import ation of investment precious metals shall be subject to the zero rate .
2. The “i nvestment precious metals” mean gold, silver and platinum that meet the following
standards:
a. The metal is of a purity of 99 percent or more.
b. The metal is in a form tradable in globa l bullion markets.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (37)
Residential Buildings
1. The “residential building s” mean building s intended and designed for human occupation,
including:
a. Any building or part there of occupied by a person or expected to be occupied by a person
as his princ ipal place of residence ;
b. Residential accommodation for students or school pupils ;
c. Residential accommodation for armed forces and security forces;
d. Orphanages, nursing homes, and rest homes.
2. The “residential building” does not include any of the following:
a. Any place that is not a building fixed to the ground and can be moved without being
damaged ; Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 37
b. Any building that is used as a hotel, hostel , bed and breakfast establishment, hospital or
the like ;
c. A hotel apartment which offers services in addition to the accommodation ;
d. Any building constructed or converted without a legal license .
3. Any building may be deemed as a residential building if a s mall part there of is used as an office
or workspace by the occupants, if it includes garages and gardens used in conjunction with it,
or if it includes any other features that may be said to comprise part of the residential building.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (38)
Applyin g the Zero Rate to Buildings Specifically Designed to be Used by
Charities
1. The first sale or lease of a building, or any part thereof , shall be zero -rated if the building is
specifically designed to be used by a charity and solely for a relevant charitable activity.
2. For the purposes of Clause (1) of this Article, “relevant charitable activity” means an activity
not intended to make a profit or interest to any proprietor, member, or shareholder of the
charity, and one which is carried out by the charity in the course or furtherance of its
charitable purpose or objectives to carry out a charitable activity in the State as approved by
the Ministry of Community Development, or in accordance with the conditions of its
establishment as a charity under federal or local decree, or as otherwise licensed to operate
as a charity by an agency authorized to grant such licenses by the federal or emirate
governments. Such charitable purposes and objectives include, for example , ad vancing
health, education, public welfare, religion, culture, science and similar activities.
Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 38
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (39)
Applying the Zero Rate to Converted Residential Building s
1. The first supply of a building, or any part there of, which is converted to a residential building
shall be zero -rate d, provided that the supply takes place within three ( 3) years as of the
completion of the conversion and the original building, or any part there of, has not been used
as a residential building and not comprise d part of a residential building within (5) five years
prior to the commencement of the conversion work.
2. The presence of shared or common facilities, or dividing walls or similar features in a
residential building shall not be sufficient grounds to consider the residential building or any
part there of as part of a n existing residential building.
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (40)
Applying the Zero Rate to Education al Services
1. The supply of educational services shall be subject to the zero rate if the following conditions
are met:
a. The supply of educational services is provided in accordance with the curriculum
recognized by the federal or local competent government agency regul ating the education
sector where the course is delivered.
b. The supplier of educational services is an educational institution recognized by the federal
or local competent government agency regulating the education sector where the course
is delivered.
c. If the supplier of educational services is a higher education institution, the institution shall
be either owned by the federal or local government or receive more than 50 % of its annual
fund ing directly from the federal or local government.
2. The supply of goods or services made by educational institutions referred to in Clause (1) of
this Article shall be zero -rated if the supply is directly related to the provision of a zero -rated
educationa l service. Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
Value Added Tax 39
3. Printed and digital reading material provided by educational institutions referred to in Clause
(1) of this Article and related to the academic curriculum shall be zero -rated.
4. Notwithstanding the provisions of Clause (2) of this Article, the following supplies shall not
be zero -rated:
a. Goods and services supplied by the educational institution referred to in Clause (1) or
made available to persons who are not enrolled in such educational institution.
b. Any goods other than educational materials provided by the educational institution
referred to in Clause (1) which are consumed or transformed by the students benefiting
from the educational service for the purposes of education.
c. Uniforms or any other clothing whi ch are required to be worn by the educational
institution referred to in Clause (1), whether or not supplied by the educational institution
as part of the supply of educational services.
d. Electronic devices related to the educational services, whether or n ot supplied by the
educational institution referred to in Clause (1) as part of the supply of educational
services.
e. Food and beverages supplied at the educational institution referred to in Clause (1),
including any supplies from vending machines or vouch ers in respect of food and
beverages.
f. Field trips, unless they are directly related to the curriculum of an education service and
are not predominantly recreational.
g. Extracurricular activities provided by or through the educational institution referred t o in
Clause (1) against fees additional to the fee s of the education service.
h. Membership of a student organization .
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (41)
Applying the Zero Rate to Healthcare Services
1. The “healthcare services” mean any service supplied and generally recognized in the medical
profession as being necessary for treat ing the recipient of the supply , including the preventive
treatment.
2. Any supply of healthcare services shall be zero -rated , provided that :
a. It is made by a healthcare entity or institution, doctor, nurse, t echnician, dentist, or
pharmacy licensed by the Ministry of Health or by any other competent authority.
b. It is r elate d to the human health .
3. "Healthcare services" do not include any of the following:
a. Any part of a supply in relation to staying in or attending an establishment whose main
purpose is to provide holiday accommodation or entertainment so that any healthcare
service is incidental to the provision of the accommodation or entertainment.
b. Elective treatment for cosmetic reasons unless prescribed by a doctor or medical specialist
for treating or prevent ing a medical condition.
4. The supply of goods shall be zero -rated if it is a supply of any of the following :
a. Any drugs specified in a resolution issued by the Cabinet ;
b. Any medical equipment specified in a resolution issued by the C abinet ;
c. Any other goods not covered by Paragraphs (a) and (b) of this Clause , which are supplied
in the course of supplying zero -rated healthcare services that are necessary for the supply
of such healthcare services.
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Part Seven
Exempted Supplies
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tax | Cabinet Resolution No. (52) of 2017 Concerning the Executive Regulations of Federal Decree-Law No. (8) of 2017 on Value-Added Tax (VAT) | Article (42)
Tax Treatment of Financial Services
1. For the purposes of this Article:
a. The “debt security” means any interest in or right to receive money owed, or to be owed
from any person, or any option to acquire any such interest or right .
b. The “ equity security” means any interest in or right to a share in the capital of a legal
person, or any option to acquire any such interest or right;
c. The “ life insurance contract” means a contract legally entered into to the extent that it
places sums at risk upon the contingency of the termination or continuance of human life,
marriage, similar relationships permitted under the applicable law, or the birth of a child.
d. The “ Islamic financial arrangement” means a written contract relat ing to a supply of
financ ing in accordance with the principles of Shariah.
2. Financial services are services associated with cash dealings or equivalent and the provision
of credit and include, for example, the following :
a. Exchange of currency, whether by the exchange of bank notes or coin, by crediting or
debiting accounts, or otherwise ;
b. Issue, payment, collection, or transfer of ownership of a check or letter of credit ;
c. Issue , allotment, drawing, acceptance, endorsement, or transfer of ownership of a debt
security ;
d. Provision of any loan, advance or credit ;
e. Renewal or variation of a debt security, equity security, or credit contract ;
f. Provision , taking, variation, or release of a guarantee, indemnity, security, or bond in
respect of the performance of obligations under a check , credit, equity security, debt
security, or in respect of the activities set forth in Paragraphs (b) to (e) of this Article ;
g. Operation of any current, deposit or savings account ; Cabinet Resolution of 20 17 Concerning the Executive Regulations of Federal Decree -Law of 20 17 Concerning the
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h. Provision or transfer of ownership of Sukuk such as derivatives, options, swaps, credit
default swaps, and futures ;
i. Payment or collection of any amount of interest, capital or dividend, or any other amount
in respect of any de bt security, equity security, credit, or life insurance contract;
j. Agreement or arrangement to carry out any of the activities set out in Paragraphs (a) to (i)
of this Clause, except for providing consultation in respect thereof .
3. The following financial s ervices shall be exempted from the tax :
a. The a ctivities set forth in Clause (2) of this Article , which are not carried out against an
explicit fee, discount, commission, or the like;
b. Issue , allotment, or transfer of ownership of an equity security or debt security;
c. Provision or transfer of ownership of a life insurance contract or provision of re -insurance
for such contract.
4. The supply of services set forth in Clause (2) of this Article shall be subject to the tax if the due
consideration thereof is an explicit fee, commission, discount, or the like .
5. Islamic financial products , being financial products under contract s complying with the
Islamic Shariah, which simulate the intention and ac hieve the same result as a non -Shariah
compliant financial product, shall be treated in a similar manner as the equivalent non -
Shariah financial product for the purpose of applying the exemption from the t ax.
6. Any supply made under an Islamic financial arr angement shall be treated in a similar manner
as the equivalent non -Shariah financial services in accordance with the provisions of the
Decree -Law and the decisions issued by the Authority, so that the tax treatment shall be the
same in the two cases .
7. If article (31) of this Resolution applies to a supply of financial services, such supply shall be
zero -rated.
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