How to Challenge an FTA Tax Decision in the UAE

What Is an FTA Tax Decision?

An FTA tax decision is an official decision issued by the Federal Tax Authority in connection with a person or business under the applicable UAE tax legislation.

Depending on the circumstances, the decision may relate to:

• A Tax Assessment issued by the FTA.
• An Administrative Penalties Assessment.
• A decision on a registration or deregistration matter.
• A decision following a tax audit.
• The rejection or approval of a tax-related application.
• A decision relating to a tax treatment or procedural request.

The business should review the title, content, reasons and notification date of the document rather than relying only on the filename, email subject or portal message through which it was received.

Is Every FTA Communication Eligible for Reconsideration?

No. Not every message, reply or communication received from the FTA is an official decision that can be challenged through a Reconsideration Request.

The FTA states that reconsideration applies to official decisions issued by the Authority concerning the applicant. Responses to general enquiries, complaints and clarifications are not treated as official decisions eligible for reconsideration.

The business should distinguish between:

• An official FTA decision.
• A Tax Assessment or Administrative Penalties Assessment.
• A request for information or supporting records.
• An FTA tax audit notification.
• A response to a general enquiry.
• A private or public clarification.
• An administrative communication that does not contain a decision.

Using the wrong procedure may result in rejection or the loss of valuable time within the legal deadline. The nature of the document should therefore be confirmed before the challenge is prepared.

The First Steps After Receiving an FTA Decision

1. Record the notification date: Preserve the decision, portal message, attachments and evidence of when the decision was received.
2. Identify the type of decision: Determine whether it is a Tax Assessment, penalties assessment or another official decision.
3. Review the stated reasons: Identify the factual, calculation, procedural and legal basis used by the FTA.
4. Identify the affected amounts and periods: Connect the decision with the relevant tax, transactions, tax periods and legal entities.
5. Calculate the applicable deadline: Do not rely on an approximate date. Calculate the Business Days based on the notification date and applicable procedure.
6. Preserve the records: Retain the original accounting records, correspondence, calculations and supporting documents.
7. Select the correct procedural route: Determine whether the matter requires a Tax Assessment Review, a Reconsideration Request or a later dispute stage.

These steps should begin immediately after receipt of the decision. Waiting until the deadline is close may leave insufficient time to review the calculations, obtain documents, prepare Arabic submissions and secure internal approval.

Reviewing the Decision, Tax Period and Applicable Deadline

A decision summary should be prepared before the substantive challenge is drafted. The summary may include:

• The decision reference and issue date.
• The date on which the applicant was notified.
• The tax type or administrative penalty involved.
• The relevant tax periods.
• The disputed amounts.
• The reasons stated by the FTA.
• The available procedural route.
• The applicable submission deadline.
• The documents needed to support the challenge.

Article 29(1) sets the Reconsideration Request deadline at 40 Business Days from notification of the decision being challenged. Where Tax Assessment Review is used first, Article 28(4) determines the reconsideration starting point, as explained below. Each stage has its own filing deadline.

Federal Tax Authority Decision No. 1 of 2025 identifies cases in which a person may request an extension of the deadline for accepting a Tax Assessment Review Request or Reconsideration Request. An extension is not automatic and should not be assumed to apply to every late request.

The legislation and current service requirements should be checked at the time of submission because the applicable procedure may depend on the type of decision, the earlier steps taken and any later legislative amendments.

Tax Assessment Review vs Reconsideration Request

Tax Assessment Review

Tax Assessment Review is an optional route to review all or part of an assessment and its related Administrative Penalties. Under Article 28(2), the reasoned request must be filed within 40 Business Days of notification of the Tax Assessment and related Administrative Penalties. This is the filing deadline, not the decision period.

TAXP008 explains that review addresses legislative, calculation or audit-procedure errors using information and documents provided during the audit. Reconsideration may be the appropriate route for new evidence or facts not presented during the audit.

Under Article 28(3), the FTA has 40 Business Days from receipt to decide and 5 Business Days from its decision to notify the applicant, subject to Article 35 extensions. Article 28(4) allows reconsideration within 40 Business Days of notification of the review decision or expiry of the period for issuing and notifying it.

Reconsideration Request

A Reconsideration Request is a reasoned request asking the FTA to reconsider an official decision issued in connection with the applicant, either in whole or in part.

The two procedures should not be treated as parallel requests that can always be submitted at the same time.

Reconsideration of the same assessment cannot be filed during review until a decision is issued or the period for issuing and notifying it expires, taking Article 35 extensions into account. Under Article 28(5), review cannot be filed or continued once reconsideration has already been requested.

The correct route depends on the nature of the decision, the procedural stage, the grounds being raised and the outcome that the applicant is asking the FTA to review.

Who Can Submit an FTA Reconsideration Request?

The person concerned by the decision may submit the Reconsideration Request directly. The FTA also accepts requests submitted by:

• An appointed Registered Tax Agent.
• An appointed Legal Representative.
• The Representative Member where the applicant is part of a Tax Group.

A general tax adviser who is not appointed or registered as a Tax Agent is not automatically permitted to submit a Reconsideration Request on behalf of another person.

The authority, appointment and identification of the applicant or representative should be checked before submission. The request must also be filed through the correct Taxable Person Profile on EmaraTax.

Learn more about XFLEX’s Registered Tax Agent and FTA Representation Services .

Documents and Evidence Needed to Challenge a Tax Decision

A Reconsideration Request should be reasoned and supported by evidence showing why the applicant believes that the decision should be changed.

The supporting file may include:

• A copy of the decision being challenged.
• Evidence of the decision’s notification date.
• The relevant Tax Assessment or penalties assessment.
• The affected tax returns.
• General ledgers and trial balances.
• Financial statements and reconciliation schedules.
• Invoices, contracts and customs records.
• Schedules recalculating the tax or penalties.
• Earlier correspondence with the FTA.
• Documents proving the factual grounds relied upon.
• Technical or legal analysis supporting the tax position.
• Relevant tax advice received by the applicant.
• Appointment or authority documents for the representative, where applicable.

The supporting documents should not be presented as an unstructured collection of files. Each item should be connected to a specific ground of challenge and its relevance should be explained.

The FTA’s current service information states that supporting documentary proof and relevant tax advice may be required. The accepted file formats and individual file-size limits should be checked before submission.

If the matter involves conflicting records or unexplained transactions, forensic accounting services may help reconstruct transactions and connect them with original documents within an agreed examination scope. This accounting work is distinct from selecting a tax procedure or providing legal advice.

How to Prepare the Accounting and Tax Calculations

If the challenge concerns a tax amount, penalty or assessment difference, the applicant should prepare a calculation that can be traced from the FTA decision to the original accounting records.

The calculation may identify:

• The amount stated in the FTA decision.
• The amount that the applicant believes is correct.
• The difference between the two amounts.
• How each amount was calculated.
• The relevant transaction and tax period.
• The affected accounts and accounting entries.
• The legal basis for the proposed treatment.
• The document supporting each figure or assumption.

A structured issues schedule can connect each ground of challenge with the affected amount, calculation, supporting evidence and relevant legislative or official guidance.

Corporate Tax Calculations

A Corporate Tax dispute may require reconciliation of the assessment with the financial statements, taxable-income computation, deductible expenses, related-party adjustments, reliefs, elections or tax losses.

VAT Calculations

A VAT dispute may require analysis of invoices, the date and place of supply, applicable tax rate, Input Tax recovery, Output Tax, imports, exports, zero-rated supplies or adjustments across different tax periods.

For wider Corporate Tax support, review XFLEX’s Corporate Tax Advisory Services in the UAE .

Where the dispute file needs an organised explanation of calculations and disputed amounts, financial expert reports can help present the methodology, reconciliations, assumptions and limitations. The purpose of the report and requirements for its use depend on the engagement scope and the relevant authority.

Arabic Documentation and Submission Requirements

The challenge should be prepared in accordance with the language and procedural requirements applying to the relevant stage.

The FTA’s published Tax Dispute Resolution information states that a Reconsideration Request should be submitted in Arabic with the grounds for the request. Objections before the Tax Dispute Resolution Committee are also submitted in Arabic with the supporting documentation.

An Arabic submission should clearly identify:

• The decision being challenged.
• The relevant factual background.
• Each ground of challenge.
• The alleged factual, calculation, procedural or legal error.
• The outcome or amendment being requested.
• The supporting documents linked to each ground.

Documents originally prepared in another language may require an appropriate Arabic translation, depending on the document and procedural stage. Material legal and technical documents should not rely on an unreviewed automated translation.

A Reconsideration Request is submitted electronically through EmaraTax by accessing the relevant Taxable Person Profile, navigating to “Other Services” and selecting the Reconsideration service.

What Happens After a Reconsideration Decision?

After a completed request is submitted, the FTA reviews the grounds and supporting documents. The Authority may request additional information or documents where required.

Article 29(2) of the Tax Procedures Law requires the FTA to issue a reasoned decision within 40 Business Days of receiving the request and to notify the applicant within 5 Business Days after issuing it. The FTA service page describes up to 45 Business Days to receive a response to a completed request. This describes the overall service timeframe; the legal periods for decision and notification are distinct. A permitted extension may apply under Article 35.

The outcome may include:

• Confirmation of the original decision.
• Partial amendment of the decision.
• Full amendment of the decision.
• A request for additional information before a decision is issued.
• Rejection for substantive or procedural reasons.

Once the Reconsideration decision is received, the notification date should be recorded immediately. That date may begin the deadline for a possible objection to the Tax Dispute Resolution Committee.

When Can a Matter Move to the Tax Dispute Resolution Committee?

If the applicant disagrees with the FTA’s decision on the Reconsideration Request, the matter may be eligible for objection before the Tax Dispute Resolution Committee, subject to the applicable conditions and procedures.

Current procedures provide for an objection to be submitted to the competent department within 40 Business Days from the date of notification of the FTA’s decision on the Reconsideration Request.

Before filing, Article 32(2) of the Tax Procedures Law requires a prior Reconsideration Request, payment in full of the Tax connected with the objection, and filing within the applicable period; the applicant should also verify its authority, the Arabic-language procedure and supporting documents. Article 32 does not list advance payment of the related Administrative Penalties as a condition for the Committee objection. For an admissible subsequent court appeal, subject to the Committee finality rule explained below, Article 36(2) separately requires proof of full Tax payment and settlement of at least 50% of the Administrative Penalties determined under the Committee decision or court judgment, as applicable, either in cash to the FTA or through an approved bank guarantee. Any Cabinet amendment to the required tax amount or penalty percentage must be checked before filing.

The objection file may include:

• The applicant’s name, details and address.
• A summary of the objection and the relief requested.
• The FTA Reconsideration decision.
• Supporting evidence and calculations.
• The details of the Legal Representative or Tax Agent.
• Additional documents supporting the grounds of objection.

The Committee may review the parties’ submissions and request further information in accordance with the applicable procedures. Submission of the objection does not guarantee that the FTA decision will be changed.

When Is the Committee Decision Final? The AED 100,000 Rule

Under Article 33(3), the Committee decision is final where the total Due Tax and Administrative Penalties relating to the decision does not exceed AED 100,000. This includes a total of exactly AED 100,000. An ordinary court appeal should therefore not be assumed available for every Committee decision.

Where the total exceeds AED 100,000, a court appeal may be available within 40 Business Days of notification of the Committee decision, subject to Articles 34 and 36 and admissibility requirements. The threshold concerns the combined amount, not tax or penalties separately.

The Role of Tax Advisers, Tax Agents and Legal Counsel

Tax Adviser

A tax adviser may analyse the tax treatment, review the accounting records and returns, prepare reconciliations and technical memoranda, and assess the strengths and weaknesses of the file.

Registered Tax Agent

An appointed Registered Tax Agent may deal with the FTA and submit or follow up requests on behalf of the applicant within the permitted appointment and regulatory scope.

Legal Counsel

Legal counsel may be required where the matter involves specialised legal analysis, an objection before the Committee, court proceedings or issues that extend beyond the tax calculations.

The role of each professional should be defined clearly. General tax advisory support should not be presented as formal tax or legal representation unless the required appointment, authority and professional status are in place.

Common Mistakes When Challenging an FTA Decision

• Failing to record the decision’s notification date accurately.
• Submitting the request after the applicable deadline.
• Using the reconsideration procedure before identifying the nature of the communication.
• Submitting a Tax Assessment Review and Reconsideration Request simultaneously for the same assessment.
• Providing general statements without specific factual or legal grounds.
• Failing to connect the supporting evidence to each ground of challenge.
• Submitting calculations that cannot be traced to the accounting records.
• Ignoring Arabic-language or translation requirements.
• Uploading incomplete, unreadable or incorrectly labelled files.
• Assuming that submission automatically suspends every liability or procedural effect.
• Submitting through a person who lacks the required appointment or authority.
• Waiting for the result before preparing for a possible next stage.

A strong challenge is not measured by the number of documents submitted. It depends on clear facts, accurate calculations, relevant evidence, a structured legal and technical position and compliance with the applicable procedures.

How XFLEX Supports UAE Tax Dispute Files

Subject to the agreed engagement and applicable professional scope, XFLEX may support a business by:

• Reviewing the FTA decision or Tax Assessment.
• Identifying the preliminary procedure and deadline.
• Analysing the affected tax periods, transactions and amounts.
• Reviewing tax returns, accounting records and financial statements.
• Preparing reconciliations and revised calculations.
• Organising the supporting evidence.
• Preparing the technical and accounting analysis of the challenge grounds.
• Supporting preparation of a Tax Assessment Review or Reconsideration Request, as applicable.
• Coordinating with the appointed Registered Tax Agent or legal counsel where required.
• Preparing the accounting and documentary file for a later dispute stage.

XFLEX does not guarantee that a request will be accepted or that an FTA decision will be changed. XFLEX also does not replace legal counsel where the stage or matter requires legal representation. The scope of work and representation depends on the appointment, professional status and applicable regulatory requirements.

If the decision followed an FTA tax audit, review XFLEX’s FTA Tax Audit Readiness and Mock Tax Audit Services .

For the scope of support across review, reconsideration and objection stages, see XFLEX’s Tax Dispute Resolution Services in the UAE.

Related XFLEX Services and Guides

• Forensic Accounting — Examine records and transactions and trace financial evidence within a defined scope.
• Financial Expert Reports — Explain calculations, claims and reconciliations for financial matters and dispute support.
• Tax Dispute Resolution — Review decisions and assessments and organise the technical file for the appropriate stage.
• FTA Tax Audit Readiness — Review documentation, returns and reconciliations connected with an FTA audit.
• Received an FTA Audit Notification? — Understand the immediate steps and records to prepare after receiving a notice.
• XFLEX Blog — Explore guidance on forensic accounting, financial expert support and tax procedures.

Frequently Asked Questions About Challenging FTA Tax Decisions

What is the deadline for a Reconsideration Request?

The usual deadline is 40 Business Days from notification of the decision being challenged. Following Tax Assessment Review, the starting point in Article 28(4) applies, as explained in the review section above.

What is the Tax Assessment Review filing deadline?

The reasoned request must be filed within 40 Business Days of notification of the Tax Assessment and related Administrative Penalties under Article 28(2). An extension depends on the applicable conditions and is not automatic.

Can every FTA communication be reconsidered?

No. Reconsideration applies to an official decision issued by the FTA concerning the applicant. General enquiries, complaints, clarifications and ordinary information requests are not all eligible for reconsideration.

Who can submit a reconsideration request?

The concerned person may submit the request directly. It may also be submitted by an appointed Registered Tax Agent or Legal Representative. The Representative Member submits the request for a Tax Group.

Can reconsideration be requested during a tax assessment review?

Reconsideration of the same assessment cannot be filed before the review decision is issued or the period for issuing and notifying it expires, including any applicable Article 35 extension.

What documents are required?

Documents may include the decision, proof of its notification date, tax returns, accounting records, financial statements, calculations, reconciliations, invoices, agreements and evidence supporting the factual and legal grounds.

Must the request and evidence be submitted in Arabic?

The request should comply with the applicable language and procedural requirements. The FTA’s published dispute information states that a Reconsideration Request is submitted in Arabic with its grounds. Tax Dispute Resolution Committee files are also submitted in Arabic with supporting documents.

What is the Tax Dispute Resolution Committee?

It is a committee that considers eligible objections to FTA decisions issued following Reconsideration Requests, subject to the conditions, deadlines and procedures established by the applicable legislation.

Is the Committee decision final at a total of AED 100,000?

Yes. Article 33(3) makes the decision final when the combined Due Tax and Administrative Penalties relating to it are AED 100,000 or less. The threshold applies to the total, not to either amount separately.

Does submitting a request guarantee that the decision will change?

No. Submission of a Tax Assessment Review, Reconsideration Request or Committee objection does not guarantee a different outcome. The result depends on procedural compliance, the grounds raised, the calculations, evidence and applicable legislation.

Official UAE Sources

• Federal Decree-Law No. 28 of 2022, including the 2025 amendment effective 1 January 2026 – Articles 28, 29 and 32–36 (FTA consolidated English text)
• FTA Reconsideration Request Service
• FTA Tax Dispute Resolution
• FTA Public Clarification TAXP008 – Tax Assessment Reviews
• Federal Tax Authority Decision No. 1 of 2025 on Cases of Extension of the Deadlines for Accepting the Submission of a Tax Assessment Review Request or a Request for Reconsideration