UAE tightens tax procedures and extends record retention by two years
Corporate tax teams must extend retention and update disclosure workflows
Change
UAE updated tax procedures regulations effective April 1, 2026, tightening rules on voluntary disclosures, requiring refund procedures to apply to any taxpayer credit balances, extending audit record-retention by two years for tax periods linked to refund claims, and clarifying information-sharing limits with government authorities.
Why it matters
Taxpayers and their advisers are required to keep supporting documents for an extra two years when a refund claim is involved, increasing the volume and duration of records exposed to audit. Tax and finance teams must also apply the revised refund procedures to any credit balances and meet stricter rules on what tax information can be shared with government authorities.
Implications
- — Corporate tax compliance teams at UAE companies must immediately change document-retention schedules to cover the additional two-year retention window — failure to retain required records risks audit penalties and denial or reversal of refund claims.
- — Treasury and accounts-payable teams at UAE companies must reconcile and submit refund claims under the revised procedures now — unclaimed or improperly documented credit balances risk rejection or delayed repayment by the tax authority.
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Source
View on Gulf News