Applicable fees for taxpayers seeking Private Clarifications

24 April 2023: On 13 March 2023, the United Arab Emirates (UAE) issued the second Cabinet Decision following the release of the Corporate Income Tax (CIT) law. Cabinet Decision No. 7 of 2023 was posted in the Official Gazette (OG) No. 747 and is an amendment on the provisions of Cabinet Decision No. 65 of 2020. 

The Cabinet Decision states the applicable fees for taxpayers that are seeking Private Clarifications and will be effective from 1 June 2023. 

It also adds to the list of services previously published via Cabinet Decision No. 65 of 2020 as per the following:

  • If the application is related to one tax – AED 1,500 ($ 408) per application
  • If the application is related to more than one tax – AED 2,250 ($ 612) per application

By use of a Private Clarification, the FTA issues a clarification which is an official, signed, and stamped document in response to a query by the applicant regarding the tax treatment of specific transactions. In case the FTA does not release a clarification following the applicant’s request, the fees might be refunded to the taxpayer.

In December 2022, the FTA also released a User Guide (USEG001) on Private Clarifications. As per the guide, the application should be made by the person or their authorized signatory seeking the clarification in relation to their business. However, submissions from appointed tax agents and legal representatives (court appointed) will also be accepted.

Key takeaways

The implementation of the CIT regime in the UAE continues to progress with new milestones. Businesses should consider preparing clarification requests regarding specific tax matters where uncertainty exists, and further guidance is required.

In due course, the FTA will announce the date from which clarification requests for CIT purposes will be accepted. We will keep you updated as things progress.

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