Cabinet Decision No. 17 of 2026: What UAE Businesses Should Review Under the Tax Procedures Executive Regulation
The UAE tax compliance framework continues to evolve as businesses adapt to Corporate Tax, VAT, Excise Tax and wider Federal Tax Authority compliance requirements.
The amendments are relevant for UAE businesses, tax registrants, taxable persons, legal representatives, tax agents and companies undergoing FTA audits, voluntary disclosure reviews, refund claims or tax registration updates.
At PTG Consultant L.L.C, we recommend that businesses treat this update as a reminder to strengthen their tax governance, documentation, record keeping and FTA response procedures.
What Has Changed?
Cabinet Decision No. 17 of 2026 updates certain provisions of the UAE Tax Procedures Executive Regulation. The regulation covers administrative tax procedures, including:
Accounting records and commercial books
Record retention periods
Electronic record keeping
Language and translation requirements
Tax registration and deregistration
Changes to registration data
Voluntary disclosures
Tax audit procedures
Tax assessments
Administrative penalties
Refund applications
Tax agents
Bankruptcy-related tax matters
Confidentiality and information disclosure
FTA requests for information and documents
These provisions are important because they affect how businesses maintain records, communicate with the FTA, respond to errors, deal with tax audits and manage refund or disclosure positions.
Who Should Review This Update?
This Tax News Alert is relevant for:
UAE Corporate Tax registrants
VAT-registered businesses
Excise Tax registrants
Free Zone and mainland companies
Businesses with real estate records
Companies preparing Corporate Tax returns
Businesses submitting Voluntary Disclosures
Companies applying for tax refunds
Tax groups and group companies
Legal representatives and bankruptcy trustees
Tax agents and tax advisory firms
Businesses currently under FTA review or audit
Key Areas UAE Businesses Should Focus On
1. Record Keeping Requirements
The regulation reinforces the importance of maintaining accounting records, commercial books and supporting documents.
Businesses should maintain proper records of:
Revenue and expenses
Purchases and sales
Payments and receipts
Balance sheet and profit and loss accounts
Wage and salary records
Fixed asset registers
Inventory records and stock counts
Invoices, contracts, licences and business correspondence
Tax calculations, elections, assessments and supporting workings
From a practical perspective, businesses should ensure that accounting data is complete, traceable and supported by documentary evidence. This is especially important for Corporate Tax filing, VAT return preparation, refund claims and FTA audit readiness.
2. Record Retention Periods
The regulation provides important timelines for keeping tax records.
As a general principle, taxable persons should retain records for at least five years following the relevant tax period. Real estate-related records are subject to a longer retention period of seven years.
Additional retention periods may apply where there is an ongoing tax audit, a dispute with the FTA, a notification of intended audit, a voluntary disclosure submitted in later years, or a pending refund application.
PTG practical view:
Businesses should not delete accounting records immediately after filing tax returns. UAE tax files should be retained in a structured and auditable format, especially where Corporate Tax, VAT, real estate transactions, related party transactions or refund claims are involved.
3. Electronic Records and Document Storage
The regulation allows records to be maintained electronically, provided the stored information is identical to the original documents, readable, reproducible and available when requested by the FTA.
This is important for businesses using systems such as Odoo, Zoho Books, QuickBooks, ERP platforms or cloud-based document management systems.
Practical action:
Companies should ensure that accounting records, invoices, contracts, tax workings and supporting documents are stored in a manner that can be easily retrieved and shared with the FTA if required.
4. Language and Arabic Translation
The FTA may accept tax-related data, records and documents submitted in English. However, the FTA may also request translation of some or all documents into Arabic.
Where Arabic translation is requested, the translation must be approved in accordance with UAE translation requirements and submitted within the period specified by the FTA.
PTG practical view:
Businesses should maintain clean and well-organised English records but should be prepared to arrange legal Arabic translations where requested, particularly in audit, dispute, refund or reconsideration matters.
5. Tax Registration, Deregistration and Updates to Registration Data
Registrants are required to notify the FTA of changes to their registered data within the prescribed timeline.
Changes may include:
Name
Address
Email address
Trade licence activities
Legal entity type
Partnership agreement
Memorandum or articles of association
Nature of business
Business address
PTG practical view:
Many businesses update their trade licence, address, email or activities but forget to update the FTA portal. This may create compliance issues, missed notifications or audit communication risks.
Businesses should periodically review their EmaraTax profile and confirm that all details are accurate and updated.
6. Voluntary Disclosure Requirements
The amended regulation provides detailed rules on when a Voluntary Disclosure should be submitted.
Where a taxpayer becomes aware that a tax return or tax assessment is incorrect and the payable tax is lower than it should have been, the Voluntary Disclosure requirements should be reviewed. If the tax difference exceeds AED 10,000, a Voluntary Disclosure should be submitted within the prescribed period.
Where the amount is AED 10,000 or less, correction may be possible through a later tax return where applicable. If correction through a tax return is not possible, a Voluntary Disclosure may still be required.
Similar principles apply where a refund application is incorrect and the refund claimed is higher than the correct amount.
PTG practical view:
Businesses should not ignore historical errors discovered after filing. Each error should be assessed based on amount, tax period, return status and whether correction can be made through the next return or requires a Voluntary Disclosure.
7. Tax Audit Procedures
The regulation gives the FTA powers to inspect premises, documents, assets, electronic records and accounting systems for the purpose of conducting a tax audit.
A person subject to tax audit may also request access to documents, data and information on which the FTA based its assessment, subject to certain limitations.
PTG practical view:
Businesses should maintain audit-ready records before receiving an FTA audit notice. Waiting until an audit starts can create unnecessary pressure, especially where invoices, contracts, reconciliations, tax workings or ERP records are incomplete.
8. Tax Assessments and Administrative Penalties
The regulation sets out information that should be included in a tax assessment, including taxpayer details, tax registration number, tax type, summary of tax reported, adjustments made, reasons for the assessment, net tax due or refundable and payment details.
This highlights the importance of reviewing FTA assessments carefully and responding within the applicable timelines.
PTG practical view:
Where a business receives a tax assessment or penalty assessment, it should not delay internal review. The business should immediately assess whether reconsideration, objection, payment, settlement or corrective filing is required.
9. Credit Balance Refund Procedures
The regulation explains the process for refunding credit balances. The FTA should decide on a refund application within the prescribed timeline or another notified period where additional time is required.
Where a refund application is approved, repayment procedures should be initiated within the specified timeframe. The FTA may also defer a refund where tax returns due at the time of the refund application have not yet been submitted.
PTG practical view:
Before submitting a refund application, businesses should ensure that all due tax returns are filed, supporting schedules are ready, and the refund amount is properly reconciled with accounting records and tax returns.
10. Tax Agents and Professional Representation
The regulation includes requirements for natural and juridical persons seeking to be listed as tax agents. These include education, experience, professional qualification, training, examination, communication ability, professional indemnity insurance and licensing requirements.
For businesses, this reinforces the importance of working with properly authorised and experienced tax professionals when handling FTA matters.
PTG Practical View
The amendments should be viewed as part of the UAE’s broader movement toward stronger tax governance, documentation discipline and administrative compliance.
Businesses should focus not only on filing tax returns but also on maintaining evidence that supports the position taken in those returns.
In our view, the key risk areas for businesses are:
Incomplete accounting records
Weak supporting documents
Delayed update of FTA registration details
Failure to correct errors through Voluntary Disclosure
Poor audit preparation
Unreconciled refund claims
Missing real estate records
Weak ERP/document retention systems
Not monitoring FTA portal notifications
A strong tax compliance framework should include proper bookkeeping, tax return review, management approval, supporting documentation, periodic tax health checks and clear responsibility for FTA communications.
Business Action Checklist
UAE businesses should consider the following actions:
Review whether accounting records are complete and properly supported.
Confirm that balance sheet, P&L, payroll, fixed asset and inventory records are available.
Check whether invoices, contracts, licences and correspondence are stored properly.
Review whether records are retained for the required period.
Confirm that EmaraTax registration details are accurate and updated.
Review whether any historical VAT, Corporate Tax or Excise Tax errors exist.
Assess whether a Voluntary Disclosure is required.
Reconcile refund claims with filed returns and accounting records.
Prepare an FTA audit readiness file.
Confirm that management knows how to respond to FTA notices.
Review whether tax records can be retrieved from the accounting system quickly.
Ensure tax documents are available in English and can be translated into Arabic if required.
Documents Businesses Should Keep Ready
Companies should maintain the following documents in an organised tax file:
Financial statements
Trial balance
General ledger
VAT returns
Corporate Tax returns
Tax computations
Tax registration certificate
Trade licence
Memorandum of Association
Invoices and credit notes
Sales and purchase registers
Bank statements
Payroll records
Fixed asset register
Inventory records
Contracts and agreements
Related party transaction schedules
Refund claim workings
Voluntary Disclosure workings
FTA correspondence
Tax audit response file
Key Takeaways
Cabinet Decision No. 17 of 2026 reinforces the importance of maintaining proper tax records, updating FTA registration data, correcting tax errors on time, preparing for FTA audits and supporting refund claims with proper documentation.
Businesses should review their tax governance framework and ensure that records, filings, tax positions and FTA communications are properly managed.
The key message is simple:
Tax compliance is not only about filing returns. It is about maintaining proper evidence, responding on time, and being ready for FTA review.
Official Source
Federal Tax Authority / Ministry of Finance publication on Cabinet Decision No. 74 of 2023, as amended by Cabinet Decision No. 17 of 2026.
Download Full PDF 👉🏻 Cabinet Decision No. 74 of 2023
How PTG Consultant L.L.C Can Support
PTG Consultant L.L.C can assist UAE businesses with:
UAE Corporate Tax compliance review
VAT health checks
Voluntary Disclosure assessment
FTA audit readiness
Tax registration and amendment support
Tax refund support
Accounting record review
Tax documentation review
EmaraTax profile review
Tax compliance advisory
Need help reviewing your UAE tax compliance position? Contact PTG Consultant L.L.C for a tax compliance review and FTA readiness assessment.. Contact Us
Disclaimer:
This article is prepared for general information only and should not be treated as legal or tax advice. The application of UAE tax legislation may vary depending on the facts and circumstances of each case. Businesses should seek professional advice before taking any action.