FTA Decision No. 1 of 2025: Extension of Deadlines for Tax Assessment Review and Reconsideration Requests (Effective from 1 March 2025)
Date of Issue: 17 February 2025
Effective Date: 1 March 2025
The Federal Tax Authority (FTA) has issued Decision No. 1 of 2025, providing clarity on the extension of deadlines for submitting Tax Assessment Review Requests and Reconsideration Requests. This Decision outlines specific cases where extensions may be granted and circumstances under which extensions will be rejected, thereby providing taxpayers and their representatives with clear guidelines on managing tax disputes.
Key Highlights of FTA Decision No. 1 of 2025:
1. Cases Where Extensions May Be Granted
- The FTA may approve extensions to the deadline for submitting a Tax Assessment Review Request or a Request for Reconsideration, provided that valid documentary evidence is submitted along with the extension request. Extensions are possible in the following situations:
- Accident or serious illness affecting the authorized signatory.
- Death of the authorized signatory, legal representative, or close family member (first or second-degree relatives).
- Temporary business disruption beyond the taxpayer’s control.
- Damage to records due to a disaster.
- General malfunction in FTA systems preventing timely submission.
- Business record disruptions due to installation of new computer systems.
- Delay due to FTA’s request for additional documents, provided the taxpayer demonstrates inability to obtain them within deadlines.
- Force majeure events, at the discretion of the FTA.
2. Cases Where Extensions Will Be Rejected
- The FTA will not approve an extension in the following circumstances:
- Ignorance of tax obligations by the taxpayer.
- Negligence of third parties (e.g., tax agents or legal representatives) relied upon by the taxpayer.
- Complexity of the issue preventing timely submission.
- The taxpayer being too busy running the business to comply with deadlines.
3. Effective Date and Publication
- The Decision takes effect from 1 March 2025.
- To be officially published in the UAE Official Gazette.
Conclusion:
FTA Decision No. 1 of 2025 provides much-needed clarity and structure around the extension of deadlines for tax dispute processes, balancing fairness and compliance. Businesses facing unforeseen circumstances that prevent timely submission of tax appeals or reviews now have a clear framework for seeking extensions. However, reliance on ignorance or negligence will not be entertained, emphasizing the importance of proactive tax compliance and professional advisory.
KGRN Chartered Accountants is available to assist businesses in navigating tax assessments, reconsideration processes, and ensuring compliance with UAE tax laws. Contact us for expert guidance on tax disputes, appeals, and reviews.
