Abu Dhabi – UAE, The UAE Ministry of Finance today announced the issuance of Cabinet Decision No. (74) of 2023 on the Executive Regulation of Federal Decree-Law No. (28) of 2022 on Tax Procedures (New Tax Procedures Law). The Cabinet Decision repeals and replaces the existing Executive Regulation on Tax Procedures and aligns definitions, procedures, and processes, amongst other matters, with the New Tax Procedures Law, which entered into force on 1 March 2023.
With the introduction of Corporate Tax in the UAE and the Corporate Tax Law becoming effective for tax periods starting on or after 1 June 2023, it is crucial to continuously update all relevant legislation and provide Taxable Persons with the necessary guidance to understand how the UAE Tax system applies to them, ensuring ongoing compliance.
The new Cabinet Decision stipulates the accounting records and commercial books to be maintained as well as the period and manner of record-keeping. It further includes updates related to the conditions and controls for registering as a Tax Agent, the procedures for de-listing a Tax Agent, including the requirement to communicate verbally and in writing in Arabic or English, and the rights and responsibilities of a Tax Agent. Other key updates include procedures related to reconciliation in Tax Evasion crimes and the terms and conditions for such reconciliations. In addition, the new Cabinet Decision covers Tax payment and refund procedures, and the obligations of a trustee in cases of bankruptcy.
Cabinet Decision No. (74) is effective as of 1 August 2023, except for Clause (2) of Article (12) outlining the conditions for juridical persons who wish to be listed in the Register of Tax Agents, which will be effective as of 1 December 2023.
About the Ministry of Finance:
The Ministry of Finance of the United Arab Emirates was established as a sovereign ministry under Federal Decree No. (2) of 1971 to assume responsibility for implementing all financial policies related to economic development in the country, foremost of which is preparing and allocating the federal budget, managing the government’s financial situation, and providing services to the government and business sectors, as well as individuals. His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, serves as Minister of Finance, heading the UAE’s economic and financial interests. His Excellency Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, aims to achieve the Ministry’s strategic objectives.
The Ministry of Finance operates in accordance with a realistic yet ambitious strategic plan to perform its tasks and services in line with international best practices. The Ministry strives to achieve six key strategic goals, namely, enhancing financial planning in the Federal Government and the sustainability of public finances; raising the efficiency and effectiveness of budget execution, while managing the Federal Government’s financial position and cash flows; overseeing the UAE’s financial and economic interests at the international level; boosting the country’s competitiveness in financial and economic fields; providing all administrative services in accordance with the highest standards of quality, efficiency, and transparency; and finally, promoting a culture of innovation in the corporate work environment.
The Ministry includes five main sectors: the government budget and revenue sector, tax legislation sector, government financial management sector, international financial relations sector, and support services sector. It also includes the Federal Debt Management Office, General Budget Committee, Government Financial Policy Coordination Council, and the Financial Restructuring Committee.
