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Our Deepest Specialisation

Tax Litigation in the UAE

Among the earliest advocates to litigate tax disputes before the UAE Federal Courts. We represent individuals and companies in all matters of VAT and Corporate Tax — from objections before the Federal Tax Authority to appeals at the highest levels of litigation.

١ The First Case

A Pioneer in UAE Tax Litigation

Cassation lawyer Mohamed Abdulilah Alhamed handled the very first tax case — registered as Case No. (1) — in the history of UAE federal litigation, at a time when tax legislation was newly enacted and no tax case had been filed before it. This pioneering role gave the firm a deep, foundational understanding of the philosophy and mechanics of tax adjudication, translated today into specialised defence for its clients.

Tax Matters Leave No Room for Guesswork

With the UAE's adoption of a modern tax system — first Value Added Tax (VAT), then Corporate Tax — every business has become subject to tax audits that may result in substantial penalties or disputes with the Federal Tax Authority. These matters leave no room for casual judgement; they demand a lawyer who understands the tax text, its precise procedures, and its critical deadlines.

UAE tax legislation is recent and procedurally exacting: objection deadlines are strictly defined, the required documents are technical, and a dispute passes through escalating stages before reaching the courts. An error at any stage may forfeit your rights at the next. Engaging a specialised lawyer from the very first moment is therefore not a luxury — it is a necessity.

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What We Offer in Taxation

📊

VAT Disputes

Defence in Value Added Tax disputes: registration, tax assessments, refunds, and objections to Authority decisions.

🏢

Corporate Tax

Advisory and litigation in Corporate Tax matters: returns, exemptions, and disputes relating to company profits.

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FTA Objections

Preparing and filing objections before the Federal Tax Authority within prescribed deadlines and procedures, with rigorous technical documentation.

Tax Disputes Resolution Committee

Representing clients before the Tax Disputes Resolution Committee and drafting technical legal memoranda grounded in legislative authority.

🏛

Tax Appeals Before the Courts

Filing tax actions and appeals before the competent courts up to the highest levels of litigation, with the expertise of a cassation lawyer.

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Tax Penalties

Challenging administrative tax penalties, requests for their reduction or cancellation, and defence against tax penalty decisions.

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Preventive Tax Audit

Reviewing companies' tax positions preventively, ahead of government audits, to identify and remedy risks before they become disputes.

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Tax Advisory

Legal tax advisory for companies and individuals on their obligations, structuring their transactions, and lawfully minimising their tax risk.

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Cross-Border Tax

Tax matters connected to international transactions, tax treaties, and multinational companies operating in the UAE.

How We Handle Your Tax Case

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Assessment

We examine the Authority's decision or audit notice and identify critical deadlines and possible grounds of defence.

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Strategy

We set an escalating plan: objection, dispute committee, or judicial appeal, according to your legal position.

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Litigation

We prepare technical memoranda and represent you before the Authority, committees, and courts at every level.

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Follow-up

We follow through on enforcement of the decision or judgment and preserve your right to appeal where your interest requires.

Tax Deadlines Are Unforgiving

The most important thing to know about a tax dispute: deadlines are decisive. Each stage has a fixed window for filing an objection or appeal, and missing it forfeits your right no matter how strong your position on the merits. That is why the first thing we do when your case reaches us is to pinpoint the remaining deadlines precisely, before we begin building the defence.

If you have received a notice from the Federal Tax Authority, a tax assessment decision, or a penalty — do not wait. Contact us immediately; every passing day may bring you closer to missing an irrecoverable deadline.

The Tax Disputes We Handle

A tax dispute is not a single door but several, each with its own nature and procedural path. We classify the matters we handle into six main branches:

📊 Tax Assessment Disputes

Challenging the Authority\'s assessment of tax due — in VAT or corporate tax — where the assessment exceeds the facts or departs from the law.

⚠️ Administrative Penalty Disputes

Objecting to penalties imposed for late registration, filing, or payment, and seeking their cancellation or reduction on legally accepted grounds.

🔍 Tax Audit Disputes

Representing you during and after a tax audit, responding to audit findings, and defending your returns and records before the Authority\'s auditors.

🧾 Refund Disputes

Claiming refund of overpaid or undue tax, and challenging the Authority\'s full or partial rejection of a refund request.

🏛️ Tax Evasion Disputes

Defending against tax-evasion allegations — the gravest category, where the burden of proof lies on the Authority and which demands precise technical and legal defence.

🌐 Cross-Border Tax Disputes

Double-taxation matters, double-tax treaties, transfer pricing between related parties, and the tax residency of individuals and entities.

The Tax Litigation Ladder: From the Authority to the Federal Court

Federal Decree-Law No. 28 of 2022 on Tax Procedures and its Executive Regulation (Cabinet Decision No. 74 of 2023) established a graduated dispute path, each stage with its own body and deadline. This is the ladder:

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Tax Assessment Review

Before the Federal Tax Authority — optional stage

An amicable preliminary stage in which the taxpayer asks the Authority to review an assessment it issued, setting out its errors. It is optional and may be skipped straight to reconsideration.

Within 40 business days of notification
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Reconsideration Request

Before the Federal Tax Authority

A reasoned request supported by legal and factual grounds. The Authority decides within 40 business days and notifies its decision within 5 business days of issuance.

File within 40 business days of notification
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Tax Disputes Resolution Committee (TDRC)

An independent committee under the Ministry of Justice — a judge and two tax experts

If reconsideration is rejected or undecided, the objection goes before the Committee, which decides within 20 business days, extendable by a further 20. Full payment of the disputed tax is a condition before objecting.

Object within 40 business days of the reconsideration decision
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Appeal Before the Competent Court

Federal or competent local courts

If the Committee\'s decision is not in your favour, you may appeal before the competent court within 40 business days. Admissibility requires the disputed tax and penalty combined to exceed AED 100,000. Both taxpayer and Authority may appeal.

Within 40 business days of the Committee\'s decision

* The deadlines and conditions above follow Federal Decree-Law No. 28 of 2022 and its Executive Regulation in force at the time of writing. The actual deadlines in your case depend on the notification date and type of decision, and must be verified as soon as the notice arrives.

Value Added Tax in the UAE: Where the Dispute Begins

VAT was introduced on 1 January 2018 under Federal Decree-Law No. 8 of 2017 (amended by Decree-Law No. 18 of 2022). It is an indirect tax collected at each stage of the supply chain and borne by the end consumer. Most disputes arise from its finer points:

Standard rate
٥٪ / 5%
Zero-rated supplies (e.g. exports) and exempt supplies (e.g. certain financial services and residential property) also exist.
Mandatory registration
٣٧٥٬٠٠٠ AED
Once taxable supplies exceed this over 12 months, registration is mandatory. The voluntary threshold is AED 187,500.
Periodic return
Quarterly (usually)
Filed within 28 days of the tax period end, with due tax paid by the same date.
Record-keeping
5 years
Invoices and accounting records must be kept, and the Authority may request them in Arabic.

* Note: mandatory e-invoicing is scheduled to take effect on 1 July 2026. [Verify the applicable date at the time of filing]

Map Your Tax Dispute Path →

Corporate Tax: The Newcomer to the Tax Landscape

Under Federal Decree-Law No. 47 of 2022, corporate tax applies to business profits for financial years beginning on or after 1 June 2023. It is a direct tax on net profit, differing in nature and disputes from VAT:

Rate
٩٪ / 9%
On taxable income above AED 375,000, and 0% below it.
Exempt bracket
٣٧٥٬٠٠٠ AED
Supporting SMEs and startups. A "Small Business Relief" also applies below a set revenue limit [verify the applicable limit].
Free zones
0% conditional
A "Qualifying Free Zone Person" may enjoy 0% on qualifying income, subject to strict substance and activity conditions.
Filing & payment
9 months
From the financial year end, the return is filed and tax paid. A 15% global minimum top-up tax also applies to large groups.

Diagnose Your Tax Position →

VAT or Corporate Tax? A Classification That Decides the Path

Conflating the two taxes is a common error that undermines the defence at its root. Each has its own nature, subject, and method of proof. A brief distinction:

VAT
NatureIndirect, on consumption
SubjectSupplies and transactions
Who bears itConsumer; business collects it
Common disputeInput tax recovery, exempt supplies
Corporate Tax
NatureDirect, on profit
SubjectNet taxable income
Who bears itThe business itself
Common disputeDeductible expenses, transfer pricing

Administrative Penalties: What Does Delay Cost You?

Cabinet Decision No. 129 of 2025 — effective 14 April 2026 — restructured penalties: unifying, simplifying, and substantially reducing many, and removing the old compounding system. The key penalties under the new regime:

Violation Penalty
Late tax registration AED 10,000
Late return filing (first offence) AED 1,000
Repeat within 24 months AED 2,000
Late tax payment 14% per annum (monthly)
Filing an incorrect return AED 500
Voluntary disclosure of an error 1% monthly on the tax difference
Voluntary disclosure after audit notice + 15% extra

* The penalties above follow Cabinet Decision No. 129 of 2025 in force at the time of writing, covering VAT and Excise Tax. Figures remain subject to verification against the law in force at the time of your matter, as tax legislation evolves. This table is no substitute for advice addressing your specific facts.

Tax Evasion: When a Violation Becomes a Crime

There is a fundamental difference between an administrative violation, punished by a monetary fine, and the crime of tax evasion, referred to the Public Prosecution and punished by imprisonment and a fine together. The dividing line is intent: error and delay are administrative violations, whereas the deliberate use of unlawful means to reduce or escape tax is a criminal offence.

Definition of Tax Evasion

"A person's use of unlawful means resulting in reducing the amount of tax due, in not paying it wholly or partly, or in obtaining a refund of tax to which he is not entitled." Per Federal Decree-Law No. (28) of 2022 on Tax Procedures.

⚖️

Tax Evasion

Imprisonment and/or a fine no less than the evaded tax and not exceeding three times it

For deliberately reducing tax, withholding payment, or claiming an undue refund by unlawful means.

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Wilful Non-Payment of Penalties

Imprisonment and/or a fine from one to three times the administrative penalty

For anyone who deliberately abstains from paying a due and payable administrative penalty.

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Other Tax Crimes

Imprisonment and/or a fine not exceeding AED 1,000,000

Such as submitting false data or documents, destroying or concealing records, or obstructing the Authority's staff.

Administrative Violation

  • Punished by a monetary fine imposed by the Authority.
  • Requires no criminal intent — delay or error suffices.
  • Its path is administrative objection, then the Committee.
  • Much of it is remedied by voluntary disclosure.

Criminal Offence

  • Punished by imprisonment and fine; referred to the Prosecution.
  • Built on criminal intent and an unlawful means.
  • The burden of proving evasion lies on the Authority.
  • Demands precise criminal and technical defence from the outset.

🤝 Tax Reconciliation — A Way Out Before Court

The legislator allows the Federal Tax Authority to reconcile with the offender before or during the criminal action, against full settlement of the due tax and penalties. It is a door to avoiding the criminal path — if handled early and with specialised counsel.

* The penalties above derive from Federal Decree-Law No. (28) of 2022 on Tax Procedures (notably Article 25) and its Executive Regulation. The lapse of the criminal action or the execution of the penalty does not extinguish the tax due or the administrative penalties. Figures and texts remain subject to verification against the law in force at the time of the act; this overview is no substitute for advice on your specific facts.

Have You Crossed the Line?

Answer six honest questions about your actual tax conduct, and the tool will give you a preliminary diagnosis: compliant, within administrative-violation territory, or under suspicion of criminal evasion — then chart your way out.

١Are you registered with the FTA, given that your activity exceeds the mandatory registration threshold?
٢Do you file your tax returns by their due dates?
٣Do your returns actually include all your supplies and revenues?
٤Have you ever claimed a tax refund? On what basis?
٥Do you keep accounting records and invoices for the legal retention period?
٦Have you paid the tax due from you?

Your answers are not stored or sent — the diagnosis runs in your browser alone.

Likely penalty or consequence
Suggested way out

⚠ This is a preliminary, indicative diagnosis based on your answers — not legal advice nor an opinion on your liability. The true legal characterisation of your case requires examining your documents and facts against the law in force. Contact us before taking any step.

Gauge Your Tax Position in Seconds

Two guiding tools that give you a preliminary sense of the likely penalty and your objection deadline — as a prelude to precise advice.

🧮Late-Payment Penalty Estimator

Per Cabinet Decision 129 of 2025: 14% per annum, calculated monthly on the outstanding balance.
Estimated penalty

📅Objection Deadline Calculator

Tax deadlines run in business days (Fri/Sat and public holidays excluded). This tool is indicative.
Estimated last day to object

⚠ These tools are for preliminary guidance only; they are not legal advice and do not compute official deadlines. The actual penalty and true deadlines are set by the law in force, the notification date, and the decision type, and are affected by public holidays. Contact us for precise verification before any deadline lapses.

Questions Many Ask About Tax Disputes

What is the deadline to object to an FTA decision?
A reconsideration request is filed to the Authority within 40 business days of notification, then an objection before the Tax Disputes Resolution Committee within 40 business days of the reconsideration decision, then a court appeal within 40 business days of the Committee’s decision. Deadlines run in business days under Federal Decree-Law No. 28 of 2022; verify the law in force at the time of your matter.
Must the tax be paid before objecting to the Committee?
Yes, payment of the disputed tax and no less than 50% of the administrative penalty (in cash or by a bank guarantee in the Authority’s favour) is generally required before the objection is accepted before the Tax Disputes Resolution Committee. Overlooking this condition forfeits the objection on form.
What is the VAT rate and the mandatory registration threshold?
The standard VAT rate is 5%. Registration is mandatory once taxable supplies exceed AED 375,000 over twelve months, and voluntary registration is available at AED 187,500, under Federal Decree-Law No. 8 of 2017 and its amendments.
What is the corporate tax rate in the UAE?
Corporate tax is 9% on taxable income above AED 375,000, and 0% below it, for financial years beginning on or after 1 June 2023, under Federal Decree-Law No. 47 of 2022.
What is the penalty for late tax payment?
Under Cabinet Decision No. 129 of 2025 (effective 14 April 2026), the late-payment penalty is 14% per annum calculated monthly on the outstanding balance. Amounts remain subject to verification against the law in force at the time of your matter.

* General guidance answers; their figures and deadlines are to be verified against the law in force at the time of your matter, and are no substitute for specific advice.

Volumes on UAE Tax Law

A series of doctrinal works by cassation lawyer Mohamed Abdulilah Alhamed, grounding UAE tax law in both theory and application.

📕 Volume I

The General Theory of Tax Law

A grounding of the principles and philosophy of tax law, its sources, its relationship to the UAE legal system, and the pillars of tax obligation.

📗 Volume II

Commentary on the VAT Law

A detailed commentary on the provisions of Value Added Tax: registration, supplies, refunds, and procedures, supported by practical applications.

📘 Volume III

Commentary on the Corporate Tax Law

An in-depth study of Corporate Tax: scope of liability, exemptions, calculation of the tax base, and companies\' procedural obligations.

📙 Volume IV

Commentary on the Tax Procedures Law

A commentary on objection and appeal procedures, their deadlines, dispute resolution committees, and tax litigation before the courts.

Request the Full Collection

For those wishing to acquire the tax law collection, contact us to request the set and enquire about its details.

📚 Request via WhatsApp

Facing a Tax Dispute?

Contact us today. We will assess your tax position and identify your critical deadlines and available options of defence.

Tax Consultation