Tax Dispute Resolution & Appeals
Written in plain language for general understanding. This is educational content, not legal advice. Based on UAE federal decrees, laws, and ministerial decisions.
UAE Federal Law
What is this right?
If you disagree with a tax assessment or penalty from the FTA, you have the right to challenge it:
- Step 1 — Reconsideration: File a reconsideration request with the FTA within 40 business days of the assessment. The FTA must respond within 40 business days.
- Step 2 — TDRC: If the FTA rejects your reconsideration, appeal to the Tax Disputes Resolution Committee (TDRC) within 40 business days.
- Step 3 — Federal Court: If the TDRC ruling is unsatisfactory, you can appeal to the Federal Court of Appeal within 40 business days.
- Penalty reduction: You can request a reduction or waiver of penalties if you can show reasonable cause for the violation.
- Payment during dispute: You must pay the assessed tax even while disputing it. If you win, the amount is refunded.
When does it apply?
- You received a tax assessment from the FTA that you believe is incorrect.
- You were issued a penalty that you want to challenge or reduce.
- This applies to VAT, corporate tax, and excise tax disputes.
What should you do?
- Act quickly — you have 40 business days at each stage, and missing the deadline means you lose your right to appeal.
- Prepare strong evidence — gather all relevant invoices, records, and calculations that support your position.
- Hire a tax advisor who is experienced in FTA dispute resolution.
- Pay the disputed amount while you challenge it — non-payment adds more penalties.
What should you NOT do?
- Do not ignore a tax assessment — it becomes final if you do not challenge it within 40 business days.
- Do not skip the reconsideration step — you must file with the FTA first before going to the TDRC.
- Do not withhold payment while disputing — you must pay first and claim a refund if you succeed.
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