2025 Year in Review of FTA Decisions & Policy Changes
1. Expansion of Excise Tax Scope
2. Update on Taxation of Partnerships
Following Ministerial Decision 261 of 2024, the FTA is updating the tax guide on partnerships.
- It clarifies conditions for unincorporated partnerships and registration processes for foreign partnerships.
- It introduces “unincorporated partnership” as a recognized legal status within the FTA’s tax portal.
3. Updated Raqeeb User Guide for Whistleblower Program
The Federal Tax Authority has issued an updated version of the Raqeeb User Guide to support its Whistleblower Program for Tax Violations and Evasion. The revised guide reflects recent legislative changes across excise tax, VAT, and corporate tax, expanding the program’s scope and effectiveness. It introduces a simplified submission process with more streamlined forms and clearly defined evidence requirements.
The update also provides detailed guidance for informants, including revised eligibility criteria and clearer procedures for reward claims and processing. These enhancements aim to strengthen transparency and encourage proactive reporting of tax non-compliance in the UAE.
4. FTA Decision No. 2 of 2025
Purpose: Establishes a structured framework for issuing tax clarifications and directives, enhancing procedural transparency and standardizing application requirements.
Key Components:
1. Private Clarifications:
- Taxpayers can request clarifications on specific tax matters.
- Applications must pertain to federal taxes or relevant penalties.
- Clarifications are binding unless withdrawn or superseded by subsequent clarifications.
2. Public Clarifications and Guides:
- The FTA may issue public clarifications, guides, and e-learning programs to elucidate tax laws and procedures.
- Such publications are subject to review by the Ministry of Finance before issuance.
3. Administrative Exceptions:
- Taxpayers may request exceptions to standard tax procedures under specific circumstances.
- Applications must be substantiated with relevant information and are subject to FTA’s discretion.
4. Input Tax Apportionment:
- Taxpayers can apply alternative methods of input tax apportionment if the standard method does not yield fair results.
- Approved alternative methods are typically valid for two to four years, with recalculations limited to the preceding three tax years.
5. Advance Pricing Agreements (APAs):
- From the fourth quarter of 2025, taxpayers can apply for unilateral APAs concerning transfer pricing arrangements.
- The FTA will announce the commencement date for other types of APAs in due course.
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