New Implementing Regulation on Tax Procedures 2023 in the UAE

The FTA has published clarifications on Executive Regulation TAXP006 related to Cabinet Resolution No.74 of 2023, which was published yesterday. The new Executive Regulation deals with tax procedures and comes into force on August 1, 2023, relating to income tax, VAT and excises.

Information about the background of events:

On March 1, 2023, Federal Law (“FZ”) No.28 of 2022 “On Tax Procedures” came into force, which replaced the previous Federal Law No.7 of 2017 “On Tax Procedures”. However, the Executive Regulations related to Federal Law No.7 of 2017 (i.e., Resolution of the Cabinet of Ministers No.36 of 2017 and No.51 of 2021) continued to be valid to the extent that its provisions did not contradict the provisions of the new Federal Law No.28, until the new regulation was published. Yesterday, the Decree of the Cabinet of Ministers No.74 of 2023 (the “New Regulations”) was published, which cancels the Executive Regulations to the Federal Law No.7 of 2017 and applies from August 1, 2023, with the exception of paragraph 2 of Article 12, which will apply from December 1, 2023.

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