DUBAI, The UAE Ministry of Finance has announced significant amendments to the UAE tax procedures, effective April 1, 2026. The changes align the implementing regulations with the Federal Decree-Law on Tax Procedures that entered into force on January 1, 2026, introducing updated rules on voluntary disclosures, refund eligibility, government information disclosure, record retention, and audit powers. Businesses operating in the UAE are urged to review their compliance practices immediately.
“The amendments aim to enhance transparency, support taxpayer compliance, and ensure the accuracy and integrity of tax procedures while safeguarding taxpayer rights.”
What Has Changed?
Voluntary Disclosures: A Clearer Framework
The revised regulations overhaul the procedures for submitting voluntary disclosures, bringing them in line with the amended provisions of the new Tax Procedures Law. Tax experts say this is a welcome clarification that removes ambiguity for businesses choosing to proactively disclose matters to the Federal Tax Authority (FTA). Any pending or planned voluntary disclosures must now follow the updated submission framework, failure to do so may affect their validity.
Refunds: Broader Eligibility Now in Effect
In a move that could benefit thousands of businesses across the UAE, the Ministry has significantly broadened the scope of refund eligibility. Under the new rules, refund procedures will apply to any credit balance in favour of a taxpayer, a notable expansion from the previous, more limited framework. Businesses are encouraged to review outstanding tax positions that may now qualify under the updated rules.
Information Disclosure: Confidentiality Reaffirmed
The amendments revise the mechanisms that govern how tax information can be disclosed to competent government authorities. Crucially, the regulations reaffirm strong protections for data confidentiality while clearly defining the scope and permissible limits of how such information may be used, offering businesses greater legal certainty around the use of their sensitive tax data.
Record Retention: Two-Year Extension Introduced
One of the most operationally significant changes is the extension of the record retention period. Under the new rules, the retention period is extended by two years for tax periods linked to a refund claim submitted before the statute of limitations expired, in cases where no determination has yet been issued by the FTA. Businesses must review and update their document retention policies to reflect this change without delay.
Audit Powers Expanded: Longer Seizure Periods Possible
The amendments grant the FTA additional flexibility during tax audits and examinations by introducing the possibility of extending the period for preserving or seizing documents or assets. This represents a material expansion of the authority’s audit powers and is of relevance to businesses currently under FTA review.
What Businesses Should Do Now
Tax advisors are urging businesses to act swiftly. Key recommended steps include:
- Update document retention policies to incorporate the two-year extension immediately.
- Review all outstanding FTA credit balances that may qualify for a refund under the expanded rules.
- Ensure any voluntary disclosures in progress are resubmitted under the new procedure.
- Inform finance and compliance teams of the updated information disclosure framework.
- Seek specialist advice if your business is currently undergoing or anticipating an FTA audit.
BACKGROUND
The Federal Decree-Law on Tax Procedures came into force on January 1, 2026, replacing earlier provisions. The April 1, 2026 amendments to the implementing regulation bring subsidiary legislation into alignment with this updated law, completing a comprehensive overhaul of the UAE’s tax procedural framework
