All About The Tax Assessment Review Process Under UAE CT

The UAE has been known for its tax-friendly policies and framework, which made it a tax haven for businesses from around the world. Entrepreneurs and business owners can acquire these benefits in the UAE, whereby they can prosper in the competitive market. The tax-friendly policies have been devised in order to attract more businesses from around the world. 

One such tax amendment was made related to the tax procedures on November 13th, 2024. It included the updates regarding the tax assessment review for the taxpayers. The Tax Assessment Review is considered to be the new mechanism by which the taxpayers can dispute the tax assessment or any penalties related to it. This optional mechanism can be used by taxpayers before filing a request for reconsideration if he or she has firm grounds to believe that there might have been technical errors regarding the implementation of appropriate tax legislation or any calculation errors or any error in the audit procedures.

What is a Tax Assessment Review?

Under a Tax Assessment Review, the taxpayer is provided with a process to request a review of the tax assessment or any part thereof and for any related administrative penalties, which might be conducted by the independent and impartial FTA official who was not part of the tax audit team. This review is carried out depending on the documents, evidence, and facts provided by the entity.

When Can a Taxpayer Apply For the Tax Assessment Review?

The taxpayer can apply for the Tax Assessment Review in the following situations:

• If there is an incorrect implementation of the tax laws or any tax treaties
• If there are errors in the audit process
• If there are errors in the tax calculation
• If the assessment has an error related to the taxable supply

What is The process of Applying for the Tax Assessment Review?

The process of requesting the review includes the following basic steps:

1. The request for the review must be submitted within the 40 business days from the date of receiving the tax assessment.
2. The request is to be sent to this mail: AssessmentReview@tax.gov.ae.
3. If the tax assessment review is unsatisfactory, then the taxpayer can apply for the reconsideration.

What Would Be The Possible Outcomes From The FTA on the Request for Tax Assessment Review?

 The responses may include the following:

• The FTA may reject the request if the conditions for making the request have not been met.
• The FTA may carry out the required adjustments in the previous tax assessment made.
• The FTA may uphold the previous tax assessment or related penalties.
• The FTA must convey and communicate the decision to the taxpayer within the 5 business days of issuing the decision.

When Can a Taxpayer Apply for a Tax Assessment Review Request?

FTA has indicated certain circumstances where the entity can apply for the Tax Assessment Review request, some of which include the following:

• Where there is a failure to communicate and inform the entity who is to be audited prior to such a tax audit and issue of a tax assessment
• Where the entity has firm grounds to believe that the FTA has relied upon the undocumented and uncertified confirmation from any third party regarding the value determination of taxable supplies of such entity based on which the tax assessment was issued
• Where the FTA might have failed to send a request for the information or any other documents or supporting evidence that could have impacted the validity of audit findings
• Where there were errors in the calculation of the value of the taxable supplies
• Where the estimation on which the tax assessment was based was incorrect

The above are some of the circumstances where the entity can file for the Tax Assessment Review request to the FTA.

How can CDA Assist in Tax Assessment Review?

CDA’s team of tax experts has been providing premium tax consultancy and other related services for more than a decade; hence, the professionals will assist your businesses in the UAE to stay compliant with the tax regulations. The team would assist the taxpayers in understanding the procedures for applying for the request, and prior to that, would equip you with the documents and the processes to be conducted before the tax audits. The taxpayers can ensure that they file the tax returns on time and accurately.

To know more about CDA’s tax-related services, connect with us today!

Mitesh Maithia

Tax Manager

Mitesh is a Tax Professional with expertise in direct, indirect, and international taxation, including transfer pricing, since 2018. Passionate about making complex tax matters simple, he shares insights to help businesses stay compliant and forward-looking.