The United Arab Emirates government has issued a federal decree amending several provisions of Federal Decree-Law No. (47) of 2022 regarding corporate and business tax.

 The changes seek to clarify how companies should calculate and settle owed corporate taxes when various incentives or facilities are involved. Crucially, the amendments now grant taxpayers the right to request payment for any unused tax credits or related benefits under specific regulations, timeframes, and procedures set by future decisions.

Tax Payment Order Clarified

The updated decree outlines a detailed mechanism for settling due corporate taxes in cases where certain tax incentives apply. According to the new provisions, companies must prioritize using their withholdings as specified in Article (46) of the law when paying taxes. Should any liabilities remain after applying these amounts, businesses may then use available foreign tax credits described under Article (47). If outstanding dues persist after exhausting those options, additional balances or forms of incentives-determined by Cabinet decision on a minister’s recommendation-may be used. Any remaining liability after all applicable credits and incentives have been applied must then be paid according to Article (48).

New Rights Over Unused Benefits

A newly introduced article gives taxable persons the explicit right to claim reimbursement for unused portions of incentive- or facility-related tax balances as created under the referenced decree-law. Such claims will follow procedures, deadlines, and guidelines that will be outlined by future Cabinet decisions based on ministry proposals.

The amendment also authorizes the Federal Tax Authority to withhold amounts from corporate tax revenues-or supplementary tax revenues if needed-to cover payment requests filed under this right. These deductions would require approval by a resolution from the Authority’s Board of Directors.