Tax Dispute Resolution Services in UAE
Registered Tax Agent Regulated by the FTA (Federal Tax Authority)
Tax Dispute Resolution Services in the UAE
Expert Support for FTA Disputes, Reconsideration Requests, and TDRC Appeals
Disagreements with Federal Tax Authority decisions — whether relating to VAT, Corporate Tax, or administrative penalties — require a structured, technically sound response. The UAE tax dispute process involves defined timelines, formal submissions, and escalating stages of review.
Farahat & Co. provides professional tax dispute resolution services, helping businesses challenge FTA decisions, prepare reconsideration applications, and navigate the full dispute process from the initial review stage through to the Tax Disputes Resolution Committee and beyond.
The UAE Tax Procedures Framework
The UAE’s Tax Procedures Law establishes the legal framework for how the Federal Tax Authority administers and enforces tax compliance — covering audits, assessments, penalties, and dispute resolution. It applies to all taxable persons and regulated entities across VAT, Corporate Tax, and Excise Tax.
Understanding this framework is essential for businesses that receive FTA notices, assessments, or penalties — and for those who need to challenge a tax decision through the formal dispute process.
FTA Tax Audits — What Businesses Need to Know
Body: The FTA has broad powers to conduct tax audits on any registered or unregistered person to verify compliance with UAE tax law. An audit can be initiated at any time and does not require the subject to hold a tax registration number.
Key points on FTA audits:
- Businesses must be given a minimum of five working days’ notice before a scheduled audit — unless the FTA has reason to conduct an unannounced inspection
- The FTA may request original records or copies, seize assets, and conduct physical inspections of stock during the audit
- The audited person and their appointed tax agent may be present throughout the audit process
- In certain circumstances, the FTA may close a business premises for up to 72 hours to facilitate the audit — subject to approval by the Director General of the FTA. An extension beyond 72 hours requires approval from the public prosecutor
FTA Tax Assessments and Administrative Penalties
Following an audit or compliance review, the FTA may issue a tax assessment where it identifies that a business has not met its tax obligations. The FTA assesses matters including:
- Whether the person is registered as required
- Whether tax has been paid correctly and on time
- Whether tax returns have been filed and are accurate
- Whether there is evidence of tax evasion or underpayment
Administrative penalties may be imposed where a business has failed to comply with its obligations. The level of penalty depends on the nature and severity of the violation. Where tax evasion is established, penalties can be significantly higher than standard administrative fines.
The UAE Tax Dispute Resolution Process
The UAE provides a structured three-stage process for challenging FTA decisions. Each stage has defined timelines that must be strictly observed.
Stage 1 — Reconsideration A business that disagrees with an FTA decision may submit a formal reconsideration request — asking the FTA to review its own decision. The application must be submitted within 40 business days of receiving the decision notice. The FTA has up to 45 business days to review the application and issue its response.
Stage 2 — Tax Disputes Resolution Committee (TDRC) If the reconsideration outcome is unsatisfactory, the matter may be escalated to the Tax Disputes Resolution Committee — an independent body operating under the Ministry of Justice. The objection must be filed within 40 business days of receiving the reconsideration decision. The TDRC typically issues its decision within 20 business days, with a possible extension of a further 20 business days.
Stage 3 — Judicial Appeal Where the disputed amount exceeds AED 100,000, the TDRC decision may be appealed before the competent court within 40 business days of the Committee’s ruling. Where the disputed amount is AED 100,000 or less, the TDRC decision is final.
How Farahat & Co. Can Help with Tax Dispute Resolution
Tax disputes require more than submitting a form. They demand a thorough review of the FTA decision, well-organised supporting documentation, a clear and technically sound presentation of the tax position, and an understanding of how the matter may escalate if not resolved early.
Farahat & Co. provides end-to-end tax dispute support, covering:
- Review of FTA decisions, assessment notices, and penalty notices
- Eligibility assessment and dispute strategy development
- Preparation of reconsideration applications — including Arabic translation
- Document organisation and supporting file preparation
- Representation before the Tax Disputes Resolution Committee
- Court appeal support where the disputed amount exceeds AED 100,000
- Ongoing advisory throughout the dispute process
Frequently Asked Questions
What is tax dispute resolution in the UAE?
What types of FTA decisions can be disputed?
What is the deadline for filing a tax reconsideration request?
What is the Tax Disputes Resolution Committee?
What are the key timelines in the UAE tax dispute process?
What happens if I miss a tax dispute deadline?
Can FTA disputes cover both VAT and Corporate Tax?
Can Farahat & Co. represent my business in a tax dispute?