Tax assessments issued by the UAE Federal Tax Authority (FTA) initiate a structured, multi-stage process of administrative and judicial review governed by Federal Decree-Law No. 28 of 2022 on Tax Procedures. A clear understanding of this procedural framework—and its associated timelines—is essential for taxpayers seeking to challenge assessments or penalties, particularly where uncertainty arises due to delays in decision-making by the Tax Dispute Resolution Committee (TDRC).

Initiating the Process: FTA Assessments and Internal Review

The tax dispute process formally begins with the FTA’s issuance of a tax assessment The date of receipt starts the countdown for all subsequent procedural steps. The first available remedy is an internal review under Article 28 of the Tax Procedures Law. A reasoned application, supported by documentation, must be filed within 40 business days of notification. This application must be supported by appropriate documentation. The FTA must issue a decision within another 40 business days and notify the taxpayer within 5 business days thereafter. If no decision is issued, the taxpayer may proceed to the next stage: reconsideration.

Reconsideration under Article 29

Under Article 29, taxpayers may formally contest any FTA decision, including one following internal review. A reconsideration request must be submitted within 40 business days of either receiving the decision or the FTA’s missed deadline. The application must follow the FTA’s format and set out clear legal and factual grounds. The FTA then has 40 business days to decide and 5 business days to notify the taxpayer. Notably, reconsideration is only available after the internal review process has concluded.

Objection Before the TDRC

If still dissatisfied, the taxpayer may file an objection with the TDRC, subject to conditions under Articles 30, 32, and 33. The taxpayer must have first submitted a valid reconsideration request and must pay the full disputed tax before filing. The objection must be lodged within 40 business days of the FTA’s decision.

Once a valid objection is lodged, the TDRC is required to issue a decision within 20 business days and must notify both parties within an additional 5 business days. For disputes under AED 100,000, the TDRC’s decision is final and binding. For larger claims the decision is enforceable but subject to appeal before the competent court, provided the appeal is filed within 40 business days of notification.

Settlement Options

 

At any stage prior to judicial proceedings, taxpayers may pursue settlement—either directly with the FTA or through the TDRC. This route is particularly advisable when the taxpayer acknowledges part of the liability or seeks to avoid the time and expense of litigation. In complex or fact-intensive disputes, settlement can offer a pragmatic resolution that aligns enforcement objectives with commercial practicality.

Legal Uncertainty: What Happens If the TDRC Delays Its Decision?

Although the law imposes clear timelines, uncertainty can arise when the TDRC fails to issue a decision within the prescribed period. In such cases, a key question arises: may the taxpayer escalate the matter to court, or must they await a formal outcome? This issue was addressed by the Federal Supreme Court (FSC) in a recent ruling that clarified the implications of administrative delay.

Applicable Legal Framework and Admissibility Conditions

Under Article 33(1), the TDRC must issue its decision within 20 business days of receiving an objection. This period may be extended under Article 35. If the TDRC either rejects the objection or fails to act within the required time, Article 36(1) permits the taxpayer to appeal to the competent court within 40 business days of:

1. receiving the rejection; or
2. the expiration of the TDRC’s decision period.

 

However, Article 36(2) imposes strict admissibility requirements for any such appeal:

• the full amount of the disputed tax must be paid (Art. 36(2)(b));
• at least 50% of the administrative penalties must either be paid or secured by a bank guarantee (Art. 36(2)(c)); and
• the objection must have been validly submitted in accordance with the procedural requirements (Art. 36(2)(a)).

Supreme Court Guidance: Judgment No. 388 of 2024

In Judgment No. 388 of 2024, issued on 14 May 2025, the FSC clarified that a TDRC decision is a procedural prerequisite to judicial review. While statutory deadlines under the Tax Procedures Law are binding, the Court emphasized they are procedural—not jurisdictional in nature.

In the case at hand, the TDRC had exceeded the 20-day period prescribed under Article 33(1), yet no decision had been issued. The court held that the taxpayer’s appeal was premature, reaffirming that administrative delay alone does not open the door to judicial review. The taxpayer must first await the TDRC’s formal outcome and satisfy all conditions under Article 36 before proceeding to court.

 

Conclusion

 

Briefly and in sum: The UAE’s tax dispute resolution framework provides a clear and structured pathway for contesting FTA assessments. Yet, as confirmed by the FSC’s Judgment No. 388 of 2024, statutory timelines—though binding—do not grant automatic access to the courts. Even where delays occur, the TDRC remains a required procedural step that cannot be skipped.

Taxpayers must therefore remain vigilant in meeting all deadlines, evidentiary standards, and payment obligations at each stage. Where ambiguity persists—especially in cases of administrative silence—legal guidance may be critical to safeguarding appeal rights. In a system where timing and form are as vital as substance, procedural precision is not optional—it is essential.