FTA to allow clarification requests for Corporate Tax registration

In a press statement issued today, the Authority explained that the service could be accessed by filling and submitting a clarification request through the EmaraTax platform, along with the required supporting documents and paying the designated service fees.

The decision aims to support and encourage taxpayers subject to Corporate Tax to voluntarily comply with the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (the “Corporate Tax Law”), which applies to financial years beginning on or after 1st June, 2023. The FTA has already opened registration for Corporate Tax for public joint-stock companies and resident private companies, in addition to launching an awareness campaign about procedures and requirements for Corporate Tax compliance.

The statement went on to specify individuals eligible to submit Private Clarification requests related to Corporate Tax registration on behalf of taxpayers. It noted that requests could be made by appointed Tax Agents or authorised legal representatives, whereas tax consultants who are not registered with the FTA as Tax Agents will not be allowed to submit clarification requests on behalf of others.

The Authority clarified that Cabinet Decision No. 7 of 2023, amending specific provisions of Cabinet Decision No. 65 of 2020 on Fees for the Services Provided by the FTA, which came into effect on 1st June, 2023, determined the fees for providing a Private Clarification request related to one tax and a Private Clarification request related to multiple taxes.

As per the Cabinet Decision, a Private Clarification is a clarification issued by the Authority in the form of a stamped and signed document concerning specific tax technical matters for a specific taxpayer, as submitted through the designated form on the FTA website, along with the required documents. Moreover, the Cabinet Decision allows the Authority to refund fees paid for Private Clarification requests in cases where the FTA does not issue the requested clarification.