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 regarding tax procedures.

This move is part of the UAE's ongoing efforts to enhance the efficiency of its tax system and strengthen principles of transparency and fairness in tax dealings. The amendments are scheduled to take effect from January 1, 2026.

Enhancing Financial Discipline


The new amendments aim to establish a clearer and more organized legal framework for tax obligations and procedures. Among the key changes is the regulation of the timeframe within which taxpayers can request refunds for their credit balances with the Federal Tax Authority (FTA). This measure seeks to ensure clarity regarding both rights and responsibilities for taxpayers as well as the FTA, ultimately promoting financial discipline across the board.


Under these changes, taxpayers will now have a maximum period of five years from the end of the relevant tax period to either claim a refund or use their credit balance to settle outstanding tax liabilities. By setting a definitive window for such financial transactions, these regulations introduce greater certainty into fiscal operations. Additional flexibility is provided for cases where a credit balance arises after this five-year period or within its last ninety days-under specified circumstances-ensuring taxpayer rights are upheld while boosting financial predictability.

Expansion of Statute of Limitations Provisions


The amendments further expand statute-of-limitations rules, granting the FTA authority to conduct tax audits or issue assessments beyond standard limitation periods in certain situations-for example, when refund requests are submitted during the final year covered by the statute. This approach aims to strike a balance between safeguarding taxpayer rights and ensuring that public funds owed are duly collected.


Additionally, under these revisions, the FTA may issue official and binding directions to both taxpayers and itself concerning how tax laws should be applied in specific circumstances. This provision does not affect existing legislation but is intended to facilitate practical application, unify interpretations across cases, and minimize risks stemming from inconsistent handling.

Refund Requests


The amendments also include transitional measures enabling taxpayers who hold credit balances with the FTA-and whose five-year window has expired before January 1, 2026 or will expire within one year following that date-to submit refund requests within one year from January 1, 2026. Taxpayers may also submit voluntary disclosures related to these requests within two years from their initial submission if no decision has yet been made by authorities. These steps aim to maintain fairness in taxation while providing flexible solutions for resolving earlier claims equitably.


The Ministry emphasized that these changes reflect the UAE’s approach toward updating financial policies in line with international best practices. The amendments are expected to boost efficiency within the national tax system and improve business conditions by enhancing trust, transparency, and minimizing administrative burdens-all contributing positively toward sustainable public revenues and economic growth.