FTA Decision FTA Decision No. 5 of 2021 Federal Tax Authority

FTA Decision 5/2021 — FTA policy on clarifications and directives (2026 version)

Federal Tax Authority Decision No. 5 of 2021 on the Authority's Policy on Issuing Clarifications and Directives

In force — amended Issued 8 December 2021 In force from 8 December 2021

Official Arabic title
قرار الهيئة الاتحادية للضرائب رقم (5) لسنة 2021 — سياسة إصدار الهيئة للتوضيحات والتوجيهات
Document type
FTA Decision
Number
5
Issued by
Federal Tax Authority
Issued
8 December 2021
In force from
8 December 2021
Applies to
Taxpayers requesting clarifications, administrative exceptions, apportionment methods or advance pricing agreements.
Current position
In force with amendments; the FTA consolidated text of March 2026 includes FTA Decision No. 2 of 2026, effective 1 March 2026.
Topics
Tax Procedures & the FTA ·
Official text
Official Arabic text · English translation (unofficial)

Factual summary

Sets the FTA's policy for issuing clarifications and directives. It covers private clarifications requested by a taxpayer, public clarifications and guides, and four kinds of directives: administrative exceptions, alternative input-tax apportionment methods, unilateral advance pricing agreements and directives on tax transactions. Directives on tax transactions are published decisions that bind both the FTA and taxpayers.

What it means in practice Professional insight

Who: taxpayers that need certainty on a specific position. What to know: which route applies (private clarification, administrative exception, apportionment method, advance pricing agreement), the minimum information a request must contain, and that published directives on tax transactions are binding.

Key provisions

  • Art. 1–2 The FTA issues clarifications and directives under the attached policy; the current version came into effect on 1 March 2026.
  • Section III Clarifications: private clarifications issued on a taxpayer's request through the FTA form, public clarifications, guides and e-learning.
  • Section IV.1–3 Directives: administrative exceptions (tax invoices, credit notes, export evidence and periods), alternative input-tax apportionment methods, and unilateral advance pricing agreements (currently for domestic related-party transactions only).
  • Section IV.4 Directives on tax transactions are published decisions that bind both the FTA and taxpayers; they lapse when the legislation they rest on is amended or when replaced.

What changed

  1. 8 December 2021 Issued
  2. 8 December 2021 In force
  3. 12 June 2024 Amended by Federal Tax Authority Decision No. 4 of 2024 (effective 1 July 2024)
  4. 19 February 2025 Amended by Federal Tax Authority Decision No. 2 of 2025 (effective 1 March 2025)
  5. 23 February 2026 Amended by Federal Tax Authority Decision No. 2 of 2026 (effective 1 March 2026)

Relationship chain

Law → decisions made under it → amendments → guidance and announcements; oldest first within each level.

  1. 8 December 2021 FTA Decision FTA Decision 5/2021 — FTA policy on clarifications and directives (2026 version) In force — amended
    1. 12 June 2024 FTA Decision FTA Decision 4/2024 — Amending the FTA policy on clarifications and directives — Amends it In force
    2. 19 February 2025 FTA Decision FTA Decision 2/2025 — Amending the FTA policy on clarifications and directives — Amends it In force

Official sources

Official Arabic text (opens in a new tab) English translation (unofficial) (opens in a new tab)

Related services: VAT Health Check · Corporate Tax

Last verified against official sources: 26 October 2026 · اقرأ بالعربية

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General information, not tax advice. Each record is checked against the official source; where they differ, the official Arabic text prevails.