As part of the UAE’s ongoing efforts to improve the effectiveness of the tax system and reinforce the values of transparency and fairness in tax transactions, the Ministry of Finance has announced the issuance of Federal Decree-Law No. (17) of 2025, which amends some provisions of Federal Decree-Law No. (28) of 2022 on Tax Procedures. On January 1, 2026, the modified law will take effect.
The revisions are intended to establish a simpler, more organized legislative framework for tax obligations and procedures, and to regulate the deadline for submitting credit balance refund requests to the Federal Tax Authority (FTA). This improves financial discipline by guaranteeing more clarity regarding the rights and responsibilities of both taxpayers and the FTA.
The changes establish a time limit of no more than five (5) years from the conclusion of the applicable tax period for either claiming a credit balance refund from the Authority or using that balance to pay taxes. This ensures taxpayers’ rights and strengthens financial certainty by providing a clear timeline for organizing such financial processes and allowing extra flexibility to submit a refund request if the credit balance arises after the five-year period has passed or within the last ninety (90) days of that period (in some instances).
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