Introduction
The Federal Tax Authority (FTA) of the United Arab Emirates (UAE) has issued Decision No. 1 of 2025, outlining the circumstances under which deadlines for submitting Tax Assessment Review Requests or Requests for Reconsideration may be extended. This decision is effective from March 01, 2025.
Cases Where Deadline Extensions are Permitted
The FTA may approve an extension for accepting the submission of a Tax Assessment Review Request or a Request for Reconsideration if the delay results from one of the following circumstances, provided the request is supported by documentary evidence:
- If the authorized signatory suffers from a serious illness or is involved in an accident.
- Death of the Authorized Signatory or Immediate Family Members includes first or second-degree relatives or the Legal Representative.
- Unforeseen temporary business disruptions beyond the taxpayer’s control.
- Instances where tax records are destroyed due to a disaster.
- A malfunction issue within the FTA’s systems.
- The sudden discontinuation of business or unavailability of tax records caused by the installation of a new computer system.
- If the FTA requests additional documentation, and the taxpayer can demonstrate the inability to provide them within the prescribed deadline.
- Any force majeure as determined at the FTA’s discretion.
Cases Where Deadline Extensions are Rejected
The FTA shall not grant an extension for accepting the submission of a Tax Assessment Review Request or a Request for Reconsideration in the following cases:
- If the taxpayer claims unawareness of their obligations.
- Any delay resulting from the negligence or failure of a third party on whom the Taxpayer relied, such as Tax Agent, Legal Representative, or intermediary.
- If the taxpayer fails to submit the request on time due to the complexity of the issue.
- The taxpayer was preoccupied with business activities.
The FTA’s decision underscores the necessity for strict adherence to tax deadlines while allowing flexibility in cases of genuine and unavoidable delays. Taxpayers seeking an extension must submit verifiable documentary evidence. The rejection criteria further emphasize the critical need for compliance with regulatory deadlines in the UAE.
