New Tax Procedures and Stricter Audits (Effective 1 April 2026)
The key amendments to Cabinet Decision No. (74) of 2023, effective from 1 April 2026, align the Executive Regulations with the updated Tax Procedures Law to enhance transparency and compliance efficiency.
Extended Record Retention
The mandatory record retention period is extended by two additional years for tax periods related to a refund claim.
This applies if the claim was submitted before the statute of limitations expired, but the Federal Tax Authority (FTA) has not yet issued a final decision.
Voluntary Disclosures and Refunds
Procedures for submitting voluntary disclosures are clarified to ensure they remain consistent with the amended primary legislation.
The regulations confirm that refund procedures apply broadly to any credit balance in favour of the taxpayer, providing clearer guidance on handling such cases.
Audit Powers and Document Handling
Authorities now have the flexibility to extend the duration for preserving or seizing documents and assets specifically for tax audits and examinations.
Information Disclosure and Confidentiality
The mechanisms for disclosing information to other competent government authorities have been revised.
The update reinforces strict safeguards for data confidentiality and defines clear limits and conditions for its use.
Transitional Provisions
Taxpayers with credit balances where the standard five-year period expired before 1 January 2026 (or will expire within one year after) may submit refund requests until 1 January 2027.
Voluntary disclosures related to these requests can be submitted within two years of filing, provided the FTA has not already issued a decision.
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