Implementation of amendments to tax law from Jan.1, 2026: MoF

The Ministry of Finance has announced the issuance of Federal Decree-Law No. (17) of 2025 amending certain provisions of Federal Decree-Law No. (28) of 2022 on Tax Procedures, as part of the UAE's continuous efforts to enhance the efficiency of the tax system and strengthen the principles of transparency and fairness in tax transactions.

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The Ministry of Finance headquarters building

The amended law will come into effect on I January 2026.

The amendments aim to establish a clearer and more structured legal framework for tax obligations and procedures, including regulating the timeframe for requesting refunds of credit balances with the Federal Tax Authority (FTA). This ensures greater clarity regarding the rights and obligations of both taxpayers and the FTA, thereby enhancing financial discipline.

The amendments set a period not exceeding five (5) years from the end of the relevant tax period for requesting the refund of a credit balance from the Authority or for using that balance to settle tax liabilities. This provides a clear timeframe for organising such financial processes, while granting additional flexibility to submit a refund request if the credit balance arises after the five-year period has elapsed or within the last ninety (90) days of that period (in specific cases), ensuring taxpayers' rights and strengthening financial certainty.

The amendments also expand the provisions related to limitation periods, granting the Authority the power to conduct tax audits or issue tax assessments after the expiry of the limitation period in certain cases, such as refund requests submitted in the final year of the limitation period, to ensure a balance between protecting taxpayers' rights and safeguarding the state's financial entitlements.