Legislation Details
- Full Title: Cabinet Resolution Regarding the Procedures of Objections and Appeals by Government Authorities on Tax Disputes
- Law Type: Cabinet Resolution
- Law Number: No. (12) of 2025
- Issued Date: 10 Feb 2025
- Effective Date: 15 Apr 2025
- Official Gazette: No. 793
- Sector: Tax
- Status: Active
- Number of Articles: 22
- Chapters/Parts: 0
- Amendments: 0
Summary
This Cabinet Resolution establishes the procedures for government authorities in the UAE to file objections and appeals against tax-related decisions made by the Federal Tax Authority (FTA). It outlines the role and functions of the Tax Disputes Resolution Committee, the timelines and requirements for submitting objections, and the process for appealing the Committee's decisions in court. The Resolution aims to provide a structured framework for resolving tax disputes between government entities and the FTA. (Cabinet Resolution Regarding the Procedures of Objections and Appeals by Government Authorities on Tax Disputes, 2025, Art. 1-11)
What is the scope and purpose of this law?
The provisions of this Cabinet Resolution apply to all procedures for objection and appeal on tax disputes related to Value Added Tax (VAT) where government authorities are a party, with respect to any of the activities they carry out in a sovereign capacity. (Cabinet Resolution Regarding the Procedures of Objections and Appeals by Government Authorities on Tax Disputes, 2025, Art. 2)
What are the key definitions under this law?
The Resolution provides the following key definitions:
- Authority: The Federal Tax Authority (FTA)
- Government Authorities: Federal and local government authorities designated under Cabinet Resolution No. (58) of 2017, except for the FTA
- Department of Finance: The official body in charge of financial affairs in the local emirate
- Committee: The Tax Disputes Resolution Committee formed under Cabinet Resolution No. (23) of 2018
- Objection: A written or electronic objection filed by government authorities with the Committee
- Competent Department: The Ministry of Justice's Tax Disputes Resolution Department
(Cabinet Resolution Regarding the Procedures of Objections and Appeals by Government Authorities on Tax Disputes, 2025, Art. 1)
What are the main obligations and requirements?
The key obligations and requirements under this Resolution include: 1. Government authorities must file an objection to the FTA's decision on an application for reconsideration within 40 working days of being notified of the decision. (Art. 4(1)) 2. Government authorities are not required to pay the full tax or administrative penalty when filing an objection, until the Committee decides on the matter. (Art. 4(3)) 3. The Competent Department must send the government authority's objection to the Committee within 2 working days of receiving it. (Art. 4(4)) 4. The Committee must review and decide on the objection within 20 working days of receiving it. (Art. 5(1)) 5. The Committee must notify the government authority and FTA of its decision within 3 working days. (Art. 5(2)) (Cabinet Resolution Regarding the Procedures of Objections and Appeals by Government Authorities on Tax Disputes, 2025, Art. 4-5)
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible for enforcement under this Resolution are: 1. The Tax Disputes Resolution Committee, which is responsible for deciding on objections submitted by government authorities against FTA decisions. (Art. 3) 2. The Competent Department, which is the Ministry of Justice's Tax Disputes Resolution Department, is responsible for receiving objections from government authorities and forwarding them to the Committee. (Art. 1, 4) 3. The enforcement judge of the competent court, who is responsible for enforcing the final decisions of the Committee that have the legal force of Writs of Enforcement. (Art. 6(3)) (Cabinet Resolution Regarding the Procedures of Objections and Appeals by Government Authorities on Tax Disputes, 2025, Art. 3, 4, 6)
What are the penalties for non-compliance?
This Cabinet Resolution does not specify any penalties for non-compliance. It focuses on the procedures for government authorities to file objections and appeals against tax-related decisions made by the FTA. (Cabinet Resolution Regarding the Procedures of Objections and Appeals by Government Authorities on Tax Disputes, 2025)
How are disputes resolved under this law?
Disputes are resolved through the following process: 1. Government authorities can file an objection to the FTA's decision on an application for reconsideration with the Competent Department within 40 working days. (Art. 4(1)) 2. The Committee reviews and decides on the objection within 20 working days. (Art. 5(1)) 3. If the total tax and penalties do not exceed AED 100,000, the Committee's decision is final. (Art. 5(3)) 4. For disputes over AED 100,000, the FTA or government authority can appeal the Committee's decision to the competent court within 40 working days. (Art. 7(1)) 5. Tax dispute claims will not be admitted in court if they were not initially objected to before the Committee or if the Committee's decision was not appealed within the 40-day deadline. (Art. 7(2)) (Cabinet Resolution Regarding the Procedures of Objections and Appeals by Government Authorities on Tax Disputes, 2025, Art. 4-7)
When did this law come into effect?
This Cabinet Resolution was issued on 10 February 2025 and will come into effect 60 days after its publication in the Official Gazette, which was on 14 February 2025. Therefore, the effective date of this Resolution is 15 April 2025. (Cabinet Resolution Regarding the Procedures of Objections and Appeals by Government Authorities on Tax Disputes, 2025, Art. 11)
Source Documents
This article analyses Cabinet Resolution Regarding the Procedures of Objections and Appeals by Government Authorities on Tax Disputes for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.