The Ministry of Finance publishes the executive regulations of Federal Law No. (7) about tax procedures

Following the approval of the Council of Ministers during its session held on 13 September 2017 under the chairmanship of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the Ministry of Finance published the executive regulation of Federal Law No. (7) Including taxable responsibilities, and the Federal Tax Authority’s procedures in the pursuit of a world-class tax system.

He Obaid Humaid Al Tayer, Minister of State for Finance, said: “The adoption by the Council of Ministers of the Federal Regulations No. 7 of the Federal Law on Tax Procedures is a qualitative step in the implementation of the UAE tax system. Effective between the Federal Tax Authority being the competent authority to manage and collect and implement the federal taxes and all categories of dealers of taxpayer and taxpayers and partners from government agencies to contribute to the achievement of the objectives of the tax system and to establish the state’s position on the world competitiveness indicators through its continuous improvement in the quality of government services and the expansion of infrastructure projects to keep pace with the future.

He added: “The executive regulation of Federal Law No. (7) on tax procedures is in line with our commitment to enhance transparency as an important element in supporting the development of the government’s financial resources efficiently to achieve the development, sustainability and soundness of the financial system. Taxes, as well as the provisions governing the relationship with customers of institutions and individuals of society.

Accounting records and business books
The Executive Regulations, pursuant to the Council of Ministers’ Resolution No. (36) for the year 2017, concerning the executive regulation of Federal Law No. (7) of 2017 on tax procedures, shall specify accounting records and business books containing the restrictions of payments, receipts, purchases, sales, revenues and expenses, and any acts imposed by Any applicable law, including the balance sheet and profit and loss accounts. Accounting records and business books also include payroll and pay records, fixed assets records, inventory records and accounts (including quantities and values) held at the end of any relevant tax period, inventory inventory records for inventory statements and additional records as required by the tax law And its executive regulations.

The Federal Tax Authority has the right to request any other information in order to ascertain the tax liability of the person through a documentary series that can be audited, including its responsibility for registration for tax purposes. Any person holding and keeping any of the accounting records and business books under the decision of the Council of Ministers shall keep them in such a manner as to enable the Commission or any official authorized by it to ascertain the tax obligations imposed on the person concerned for a period of five years after the end of the tax period (5) years from the end of the calendar year in which the relevant document was created for the non-taxable person or for the period specified by the tax law in respect of the real estate records. The list includes the following key points:

Procedures for tax registration and cancellation
The tax registration and cancellation shall be followed by a number of procedures, including the filing of a tax registration application by the unregistered taxpayer or any other person entitled to register in accordance with the approved forms in this regard. To cancel the registration, in accordance with the models adopted by the Commission in this regard.
The Authority shall study or cancel the application for tax registration in accordance with the rules adopted in this regard. The tax registration shall be canceled or canceled by granting the applicant a tax registration number, cancellation or reactivation upon re-registration of the same person as the case may be. The Authority shall inform the person of his tax registration, cancel his tax registration or reactivate it in accordance with the mechanism adopted in this regard.

Tax liabilities
If the taxable person pays any amount to the Authority without specifying the type of tax or tax period that has been paid, the Authority may allocate the amount paid to settle any debts or liabilities due to it and according to seniority. If the payments received by the Commission exceed the current obligations on the taxable person, the Commission may record such surplus as a credit for future taxable obligations, unless the taxable amount is requested by the taxable person.

The date range of the voluntary declaration of the Commission
According to the decision, if the taxpayer finds that the tax return submitted by him to the Authority or the tax assessment sent to him by the Authority is incorrect, which led to the calculation of the tax due in accordance with the tax law, under the tax law of less than (10,000) dirhams, ) A working day from the date of his knowledge of the error. If the taxable person finds that the tax return submitted by him to the Authority or the tax assessment sent to him by the Authority is incorrect, which led to the calculation of the tax due in accordance with the tax law, with a minimum amount of not more than (AED 10,000), he must correct the error in the tax return for The tax period in which the error is discovered, if he is required to submit a tax return to the Authority for that tax period.

Procedures for registering the tax agent in the register and his rights and obligations
A person who is required to be registered in the registry must fulfill many conditions, including good conduct and conduct, and has never been convicted of a felony or misdemeanor contrary to honor or trust, although he has been rehabilitated and obtained at least a bachelor’s or master’s degree Tax or accounting or law from a recognized educational institution or to obtain a bachelor’s degree in another field, to have a recognized certificate from an international association specialized in the field of taxation, and to have practical experience for a period of not less than three years in the field of Tax or legal accounting or law, with a To communicate orally and in writing in both Arabic and English.

Tax audits
Before making a decision on a person’s tax audit, the Authority must make a decision whether or not the tax audit is necessary to protect the integrity of the tax system. And determine the responsibility of the person or any person associated with him to comply with the law and tax law, determine the potential tax revenues and the compliance burdens and administrative burdens of both the entity and the person resulting from the tax audit. If the Commission decides to re-audit it should take into account the results of the previous tax audit and any new information or data from That would change the body’s position. The Authority may, for the purposes of conducting the tax audit, inspect the headquarters, the documents and the assets therein, in addition to the accounting systems used by the tax assessor.

Audit result
The person subject to the tax audit shall be notified of the results of the tax audit within 10 working days of the end of the tax audit.

Tax assessment and assessment of administrative fines
According to the decree, when the amount of the tax or administrative fine is assessed and reported to a person under the tax law, it becomes the debt owed to the Authority and can be collected on that basis.

Reduction or exemption from administrative fines
The Authority may reduce or exempt administrative fines for any person found to be in breach of the provisions of the law or the tax law, provided that he has an excuse acceptable to the Authority.

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