CD 36/2017 — Former Tax Procedures Executive Regulation (repealed)

Factual summary

Was the Executive Regulation of the first Tax Procedures Law. It set the content and retention periods of accounting records, the use of Arabic, registration and notification duties, voluntary disclosure rules around the AED 10,000 threshold, tax agent listing conditions, tax audit powers and timelines, refund procedures and confidentiality. Cabinet Decision No. 51 of 2021 rewrote its rules on reducing or waiving administrative penalties.

What it means in practice Professional insight

Who: taxpayers and tax agents dealing with periods or procedures before 1 August 2023. What to check: which regulation governed a past disclosure, audit or penalty waiver request; current obligations follow Cabinet Decision No. 74 of 2023.

Key provisions

• Arts. 2–3 Accounting Records and Commercial Books include the accounting books (balance sheet and profit and loss accounts, wages and salaries, fixed assets, inventory) and are kept for 5 years after the end of the Tax Period for a Taxable Person, or 5 years from the end of the calendar year in which the document was created for a non-Taxable Person; the Authority may require a further period not exceeding 4 years in a dispute or tax audit, and records are kept for 12 months after the end of bankruptcy proceedings.
• Art. 8 Where an error in a Tax Return or Tax Assessment understates Payable Tax by more than AED 10,000, the Taxable Person makes a Voluntary Disclosure within 20 business days of becoming aware of it; where the difference is not more than AED 10,000, the error is corrected in the Tax Return for the period in which it is discovered (or by Voluntary Disclosure within 20 business days if there is no such return); an overstated refund application is disclosed within 20 business days.
• Art. 10 A Tax Agent applicant must be of good conduct, hold a recognised bachelor or master degree in tax, accounting or law (or another bachelor degree plus a recognised tax certification), have at least three years of recent relevant experience with oral and written Arabic and English, pass any qualifying tests, hold professional indemnity insurance and work through an approved legal person; the Authority decides within 15 business days and listing in the Register is valid for three years.
• Arts. 12–14, 16 During a Tax Audit the Authority may inspect the Premises, Documents, Assets and accounting systems; entering a part used as a dwelling requires the Director-General's prior written consent and a Public Prosecutor permit; a record of removed Documents or Assets is provided within 10 business days, and perishable Assets may be disposed of 45 business days after removal after 10 business days' notice to the owner.
• Art. 17 The person audited is notified of the results within 10 business days from the end of the audit, may request within 20 business days the documents and data on which the assessment was based, and the Authority provides them within 10 business days (except internal correspondence and other persons' confidential data).
• Art. 22 The Authority reviews a refund application and notifies acceptance or rejection within 20 business days (or notifies that it needs longer); within 5 business days of approval it pays the refund, offsets it against other Payable Tax or Administrative Penalties, or postpones it until overdue Tax Returns are submitted.
• Art. 26 As amended by Cabinet Decision No. 51 of 2021: the Authority may reduce or waive Administrative Penalties where there is an excuse it accepts, supported by evidence, either on its own initiative or on an application notified within 40 business days from the end of the excuse after the violation has been corrected; a tripartite committee formed by the Director-General decides on the excuse, a deliberate violation is never excused, and the Authority decides within 40 business days and notifies within 10 business days.