What is the Tax Disputes Resolution Committee?
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The Tax Disputes Resolution Committee is the first stage for settling most tax disputes with the FTA before going to court. It must decide your objection within 20 business days, and if the disputed amount is AED 100,000 or less, its decision is final.
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The detail
The TDRC, established under Article 30 of Federal Decree-Law No. 28 of 2022, is a permanent committee that reviews tax objections submitted after the FTA's reconsideration stage. Under Article 33, it must decide within 20 business days of receiving the objection and notify the person and FTA within 5 business days (Article 33(1)-(2)). Its decision is final if the total disputed tax and administrative penalties do not exceed AED 100,000; otherwise, appeal proceeds to the competent court, but only after the Committee has considered the objection (Article 33(3)-(4)). It also approves instalment payment, waiver, or refund of administrative penalties under Cabinet Decision No. 105 of 2021 and related FTA guidance.1234
What the law says
- Article 30 of Federal Decree-Law No. 28 of 2022 establishes the TDRC as a permanent committee chaired by a judicial authority member with two registered tax experts.1
- Article 33 sets the 20-business-day decision timeline, the 5-business-day notification, the AED 100,000 finality threshold, and the requirement to exhaust Committee objection before going to court.2
- Cabinet Decision No. 105 of 2021 (Article 3) and the FTA's public clarification on the amendment give the Committee authority over penalty instalments, waivers, and refunds.34
What it depends on
- Committee decisions are final when the disputed amount (due tax plus administrative penalties) is AED 100,000 or less.2
- For penalty instalments, penalties must be unsettled, at least AED 50,000 (adjustable by the Committee), not under other dispute, and you must owe no payable tax for that tax period.3
- The Committee may extend its decision deadline by up to 60 business days if necessary, and may accept late objections if the delay was due to force majeure or circumstances beyond your control.5 Based on FTA guidance
Check before you rely on it
- Check the total amount of your disputed assessment to determine if the Committee's decision will be final.
- Before applying for penalty instalments, ensure you have no outstanding tax liabilities for the relevant period.
- Confirm you filed a valid objection with the FTA before reaching the Committee stage.
Note: The Committee's detailed bylaws are issued by a Cabinet decision that is not included in the supplied materials; refer to that decision for full procedural steps.
Sources (5) — read the official text
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Article 30 – Tax Disputes Resolution Committee
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Article 30 – Tax Disputes Resolution Committee 1. One or more permanent committees shall be formed known as the “Tax Disputes Resolution Committee”, chaired by a member of the judicial authority and two expert members registered in the register of tax experts to be appointed by a decision by the Minister of Justice in coordination with the Minister. 2. A Cabinet decision shall be issued regarding the Committee's bylaws, the remuneration of its members, and the procedures it shall follow. Federal Decree-Law No. 28 of 2022 and its amendments – As published by the Ministry of Finance 20
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Article 33 – Procedures of the Committee
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Article 33 – Procedures of the Committee 1. The Committee shall review the objection submitted to it and make a decision within (20) twenty Business Days from the receipt of the objection. 2. The Committee shall inform the Person submitting the objection and the Authority of its decision within (5) five Business Days of its issuance. Federal Decree-Law No. 28 of 2022 and its amendments – As published by the Ministry of Finance 21 3. The Committee’s decision on the objection shall be deemed final if the total amount of Due Tax and Administrative Penalties in respect of the decision does not exceed (100,000) one hundred thousand Dirhams. 4. In all cases, Tax disputes will not be accepted before the Competent Court if an objection has not been previously submitted to the Committee.
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Article 3 – Controls for Settlement of Administrative Penalties
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Article 3 – Controls for Settlement of Administrative Penalties by Instalments The Committee may approve the Settlement of Administrative Penalties by instalments if the following are met: 1. The Request to pay by instalments shall be in respect of unsettled Administrative Penalties only. 2. The Administrative Penalties required to be paid in instalments by the Person shall not be less than (50,000) fifty thousand Dirhams, and the Committee may make any adjustments to that amount. 3. The Administrative Penalties, which are the subject of the Request to pay by instalments, shall not be subject to dispute before the Tax Dispute Resolution Committee, the competent courts, or any other entity involved in the consideration of tax objections or appeals in accordance with the mechanism stated in the Federal Law No. 7 of 2017, except objection through the reconsideration mechanism. 4. The Person should not owe any payable tax in respect of the tax period which is the subject of the Request.
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Cabinet shall issue a Decision adopting an يصدر مجلس الوزراء قرارا ً باعتماد آلية بديلة،المختصة alternative mechanism of objection and appeal if لالعتراض والطعن إذا كان أطراف النزاع أيّ من الجهات the parties to the dispute are any of the Federal or .الحكومية االتحادية أو المحلية المحددة في ذلك القرار local Government entities specified in that Cabinet Decision. Pending the Cabinet Decision and its enforcement, تسري،وإلى حين صدور قرار مجلس الوزراء والعمل به the general objection and appeal rules will apply to األحكام العامّ ة في شأن اعتراضات وطعون الجهات objections and appeals of Federal and local .الحكومية االتحادية والمحلية المتعلقة بالمنازعات الضريبية Government entities concerning tax disputes. Mechanism of waiving, refunding, and payment of آلية اإلعفاء من الغرامات أو ردها أو سدادها على أقساط Penalties as instalments Penalties may be levied where a person commits غير،5قد تفرض الغرامات في حال ارتكب الشخص مخالفة an offence.5 There may, however, be أنه قد تكون هناك ظروف خارج إرادة الشخص قد يلزم circumstances beyond the person’s control which .النظر فيها may need to be considered. As per the Tax Procedures Law amendment, the تم تعديل،وبموجب تعديل قانون اإلجراءات الضريبية FTA’s authority to waive Penalties was modified. As ونتيجة لهذا.صالحية الهيئة في اإلعفاء من الغرامات a result of the amendment, the previous تم إلغاء اللجنة السابقة التي تنظر في األعذار واألدلة،التعديل committee reviewing the excuses and evidences in .المقدمة في شأن طلبات التخفيض واإلعفاء من الغرامات respect to applications to reduce or waive Penalties no longer exists. A new committee with the mandate to approve the وسيتم تشكيل لجنة جديدة تختص بالموافقة على تقسيط payment of Penalties in instalments, and waiving .ً واإلعفاء منها أو ردها كل ًيا أو جزئيا،الغرامات or refunding penalties in full or in part, will be formed. شرح تفصيلي Detailed discussion األطر الزمنية لالعتراض والطعن Timelines for objection and appeal 3 / 11
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− The value of the tax and administrative . مقدار الضريبة والغرامات اإلدارية مستحقة الدفع− penalties payable. − The percentage and value of the additional . بيان نسبة ومقدار المقابل اإلضافي للتصالح− amount of consideration for the reconciliation. 29،30،31،32)25 تمديد المواعيد (المادة Extension of deadlines (Article 25)29,30,31,32 The FTA may extend the deadline for deciding on a يجوز للهيئة تمديد أجل البت في طلب مراجعة التقييم tax assessment review request and a request for ) يوم عمل إذا كان20( الضريبي وطلب إعادة النظر لمدة reconsideration for a period of 20 business days if .التمديد ضروريا ً للبت في الطلب the extension is necessary to decide on the request. The FTA may, at the request of the concerned تمديد مدة قبول، بنا ًء على طلب ذوي الشأن،يجوز للهيئة persons, extend the deadline for accepting the ،تقديم طلب مراجعة التقييم الضريبي أو طلب إعادة النظر submission of a tax assessment review request or .في الحاالت التي تقدرها الهيئة a reconsideration request, in the cases deemed appropriate by the FTA. The Tax Disputes Resolution Committee may يجوز للجنة فض المنازعات الضريبية تمديد أجل البت في extend the deadline for deciding on a Tax objection ) يوم عمل إذا كان التمديد60( االعتراض الضريبي لمدة for a period of 60 business days if the extension is .ضروريا ً للبت في االعتراض necessary to decide on the objection. The Tax Disputes Resolution Committee may, at بنا ًء على طلب ذوي،يجوز للجنة فض المنازعات الضريبية the request of a concerned person, extend the تمديد مهلة قبول تقديم االعتراض الضريبي إذا كان،الشأن deadline for accepting the submission a tax تأخير تقديم االعتراض الضريبي نتيجة أحداث ال يد له فيها objection if the late submission of the tax objection أو حادث فجائي أو ظروف طارئة أو قوة قاهرة حالت دون was due to circumstances beyond the person’s القدرة على التقدم باالعتراض الضريبي ضمن المواعيد control, sudden accident, emergency circumstances or force majeure that prevented them from submitting the tax objection within the specified period. 18/28 .المحددة
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Written by AI from the FTA sources above and checked before display. Not tax advice or official FTA information - confirm with a tax adviser before you act. Full disclaimer
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