Overview
- The UAE issued a Federal Decree-Law on December 15 amending Decree-Law No. 47 of 2022 on the taxation of corporations and businesses.
- Tax liabilities must now be settled in a set order: first withholding tax credits under Article 46, then foreign tax credits under Article 47, then Cabinet-approved incentives, with any remainder payable under Article 48.
- A new article permits taxable persons to claim payments for unutilised credits from approved incentives or reliefs, subject to conditions, timelines and procedures to be set by the Cabinet.
- The Federal Tax Authority is authorised to withhold amounts from corporate tax revenues, and where relevant top-up tax revenues, to settle approved refund claims pursuant to a Board decision.
- Officials describe the update as increasing transparency and administrative clarity for businesses using credits, incentives and reliefs.