Step-by-Step Guide to Filing Reconsideration Requests in UAE Tax Assessments

Putting A Reconsideration Request for Tax Assessment In The UAE

Do you think you have been wrongly convicted by the authorities? Here is the solution. The Federal Tax Authority allows businesses and companies in the UAE to exercise their right to get a justification or ask for the legitimacy of the tax assessment review. As per the Federal Decree Law No 7 of 2017, the reconsideration request is to allow transparency and accuracy of the FTA decisions. 

What is Tax Reconsideration Request and How You May Use It?

As discussed earlier, the request allows the person to ask for the credibility of the Federal Tax Authority decision against the company or business. You can apply for that after applying for the tax assessment review and think that; 

1. Tax assessment process has some loop holes in it.
2. FTA has relied much on the external resources for the information.
3. There exists a lack of information in the review process.

Legal Frameworks Related With Reconsideration Request

The reconsideration request fall under the law of federal decree law no 7 of 2017 which poses following articles that the concerned businesses and companies need to know:

• Article# 27 of Law: define the right of the taxpayer to apply for the Reconsideration request with in the said timeframe..
• Article # 28 that deals with the Federal Tax Authority standing that the must answer the request in 20 days in written form..
• Article # 33: It’s describes the whole process of tax dispute resolution in between the FTA and the tax payer.

Who Can Apply for Tax Reconsideration

Only three types of persons can apply for the tax reconsideration Request: 

• Taxpayer themselves.
• Tax agent or simply the person who is appointed by the taxpayer.
• Lawyers or legislative representative of the business owner.

Read More:  Reduce Corporate Tax Liability in the UAE

How to File for a Tax Reconsideration Request

Here is she detailed guide to submit the Reconsideration request for tax review in the UAE. 

• First, Read and Understand the Tax Assessment Review Report by FTA

Look for the penalization and on which grounds does the Federal Tax Authority has implemented the penalty. Look for any potential loop holes. 

• Gather all of your documents that can assist you in filing the application

You have to keep records of all the documents you have to support your claim. These can be your bank statements, tax return receipts, bank transactions, and any contacts. 

• Submit the Reconsideration Request

Once you have made sure all the things are in your favor, apply for the application within the time limit and through the online portal of the federal tax authority. 

• Wait for the answer from the Federal Tax Authority

The Federal Tax Authority takes their time to investigate and look into the matter and makes the decision asper the need. The FTA takes 40 business days to review and make a decision wile takes 5 days to inform the applicant..

• Supporting Documents

Asper the taxation department, the documents you need are the formal factual documents you need to submit on the basis of which you can base your application. All the documents must be submitted in one file and size must be less than 5 MB.

If your application is approved and the Federal Tax Authority accepts your grounds, the FTA will remove the penalization from your business. In this way, you get the economic advantage of paying a large amount of fines. 

PRO Tip to Make the Process A Success

• It's important to keep yourself updated with the law and regulations. All businesses owners must know the laws and comply well with them
• If you are sure of the matter, you should be submitting the application promptly without any delay.
• Keep a record of your documents that are necessary for the claim.
• Partner with the Consulting company in order to better understand the process and be successful in it.

The reconsideration procedure in the UAE is an essential aspect that requires prompt and efficient efforts from the business and company. If successful, one can save themselves from the problem of penalties. Working hand in hand with the expert consultants one can save themselves from failing the process and deal with the matter efficiently. 

FAQs

What is the process of submitting a reconsideration request in the UAE?

You can file the request with the help of the Federal Tax Authority online portal. You have to attach the relevant documents and wait for the response. 

Which major steps are involved in the tax application process?

First, analyze the review report for the FTA, keep the supporting documents in line and apply for the application process, apply the application efficiently, and after submission wait for an answer.

Which Documents are required for the application?

Necessary documents you need are financial documents, transactions, contracts and receipts. 

How does the federal tax authority deal with the application?

The federal tax authority looks for the credibility of the request, and analysis of the evidence, and decides within 45 days.