Starting August 1, the Federal Tax Authority (FTA) will refund fees for “private clarification” requests in certain cases where the clarification is not issued.
According to a Khaleej Times report, this initiative pertains to companies that have sought detailed clarifications on one or more taxes, a service available since June 1, 2023. If a clarification request remains unanswered, the full fee will be reimbursed. For requests covering multiple taxes, partial refunds will be issued if only one tax clarification is provided. The refund amount will be the difference between the fee for multiple taxes and the fee for a single tax.
According to the Federal Tax Authority Decision No. 5 of 2024, issued on July 19, refunds will be granted in specific scenarios, including:
- Withdrawal of the clarification request by the applicant within two business days of submission.
- The applicant is not registered for Corporate Tax and the request is unrelated to tax registration.
- The applicant is undergoing a tax audit at the time of the request.
- The request pertains to procedures arising from an existing Authority decision.
- The request duplicates another active request from the same applicant on the same subject.
- The request relates to a topic under review for potential legislative changes in coordination with the Ministry of Finance.