Understanding the Tax Disputes Resolution Committee in the UAE

Navigating Tax Disputes in the UAE: The Role of the Tax Disputes Resolution Committee

Dealing with a tax dispute in the UAE? The Tax Disputes Resolution Committee is a key authority that helps businesses and individuals resolve tax issues with the Federal Tax Authority (FTA). This committee provides a fair and transparent process for appealing tax penalties, VAT assessments, and other tax-related matters in the UAE. Understanding how to approach tax disputes and how the committee operates is essential for UAE taxpayers looking to stay compliant and protect their rights. Whether you're a business owner or a tax consultant in Dubai, Abu Dhabi, Jebel Ali or anywhere in the UAE, knowing your options for tax appeal and resolution is vital in today's evolving UAE tax system.

What is the Tax Disputes Resolution Committee?

The Tax Disputes Resolution Committee (TDRC) is a permanent body established to handle disputes between taxpayers and the Federal Tax Authority (FTA). Its primary goal is to ensure that any disagreements over tax assessments, penalties, or decisions are resolved fairly and efficiently. Each committee is chaired by a member of the judicial authority, supported by two expert members who are registered in the official register of tax experts, ensuring impartiality and adherence to legal standards. These experts, appointed by the Minister of Justice, bring specialized knowledge to effectively handle complex tax disputes and ensure transparent resolution under the UAE’s tax laws.

Navigating Tax Disputes in the UAE: Committee Jurisdiction and Procedures

In the UAE, resolving tax disputes is structured, transparent, and guided by specific laws. Articles 31 to 34 of the tax procedures law offer a detailed framework for how objections to Federal Tax Authority (FTA) decisions are handled through the Tax Disputes Resolution Committee (TDRC).

Jurisdiction of the Tax Disputes Resolution Committee (Article 31)

The TDRC plays a crucial role in ensuring fairness in tax matters. It has the authority to:

1. Handles objections filed against the FTA’s decisions regarding prior reconsideration requests.
2. If the FTA fails to respond to a reconsideration request within the stipulated timeframe, the Committee can intervene and decide on the matter.

If you disagree with the FTA’s decision on a reconsideration request, such objections must be filed within 40 business days from the date of being notified of the FTA’s decision.

The Committee will not accept your objection if:

• You did not first file a reconsideration request with the FTA.
• The tax amount related to the objection hasn’t been fully paid.
• The objection was submitted after the 40-business-day window.

The Cabinet may change the required tax payment condition if recommended by the Minister.

How the Tax Disputes Resolution Committee Handles Your Objection: Key Steps and Deadlines

Once your objection is accepted, the Committee follows a strict and efficient review timeline:

1. The Committee will review and issue a decision within 20 business days of receiving the objection.
2. Both the taxpayer and the FTA will be informed of the decision within 5 business days of issuance.
3. If the total tax and penalties involved are AED 100,000 or less, the decision is considered final.
4. No tax dispute can be taken to court unless it has first gone through the Committee.

The UAE tax dispute resolution process provides taxpayers with a transparent and fair framework to address tax grievances. From filing initial tax reconsideration requests to reviews by the Tax Disputes Resolution Committee (TDRC) and potential escalation to UAE courts, each stage follows defined procedures and strict timelines. For businesses and individuals in the UAE, understanding these tax dispute resolution steps is essential to effectively manage tax controversies, ensure compliance, and avoid costly legal complications under the UAE tax laws.

How does a Tax Agency Support You with the Tax Disputes Resolution Committee (TDRC) in the UAE?

Navigating the Tax Disputes Resolution Committee (TDRC) process can be complex and time-sensitive. A professional tax agency in Dubai, Abu Dhabi, Sharjah, and across the UAE provides essential support to ensure your tax dispute is handled efficiently and effectively. Here’s how tax agencies assist clients with TDRC cases in the UAE:

• Reviewing and Assessing Tax Notices: Tax agent or Tax agency can carefully analyze Federal Tax Authority (FTA) assessments and penalties to identify valid grounds for dispute.
• Preparing and Filing Objections: Tax Experts in Dubai, Abu Dhabi and other Emirates help draft and submit formal objections and all required documents on time, ensuring compliance with TDRC procedures.
• Representation and Communication: Tax Agents represent taxpayers during hearings and communications with the TDRC, advocating for clients throughout the UAE, including free zones like Jebel Ali (JAFZA), Dubai Airport Free Zone (DAFZA), Hamriyah etc.
• Strategic Guidance: With in-depth knowledge of UAE tax laws and TDRC regulations, tax agencies in all Emirates provide strategic advice on the best approach to resolving disputes or escalating to court if needed.
• Compliance and Documentation: They assist in compiling thorough documentation to support your case and comply with legal standards across the UAE tax system.
• Post-Decision Support: After the TDRC decision, tax agencies help implement the resolution, whether it’s arranging payment plans, appeals, or compliance adjustments.

By partnering with a trusted tax agency in Dubai, Abu Dhabi, Sharjah, or elsewhere in the UAE, businesses and individuals can confidently navigate the TDRC process, minimize risks, and protect their tax interests.

If you need expert assistance navigating tax disputes, our experienced team offers comprehensive support, including objection filing, documentation preparation, representation before the TDRC, and guidance through the entire dispute resolution process. Contact us today to learn how we can help protect your interests and ensure compliance with all UAE tax regulations.

Why Choose CLA Emirates for Your UAE Tax Disputes?

• Registered Tax Agents with the FTA

• Deep knowledge of UAE VAT, Excise, and Corporate Tax laws

• Presence in all major business hubs across the UAE

• Arabic-speaking experts for official submissions

• Experience handling disputes in JAFZA, DAFZA, ADGM, and DMCC

• Tailored support for both private companies and government entities

Whether you’re dealing with a VAT penalty, a corporate tax objection, or a complex case involving cross-border transactions, CLA Emirates provides the clarity, confidence, and expertise you need to navigate the tax landscape effectively.

Contact CLA Emirates for your query on Tax Disputes Resolution

Ajil Varghese
Associate Director – Taxation
M: +971 54 2119 621
E: Ajil.Varghese@claemirates.com
CLA Emirates