Navigating Tax Uncertainties: How to Request Clarifications from the Federal Tax Authority

The Federal Tax Authority (FTA) has introduced a valuable update with the release of the Tax Procedures Guide on Private Clarifications (TPGPC1 – November 2024). This guide outlines how taxpayers can seek official clarification on specific tax matters, ensuring correct compliance and avoiding future disputes.

What Are Private Clarifications?

A Private Clarification is an official response issued by the FTA on a taxpayer’s specific request, based strictly on the facts and documentation submitted. Unlike Public Clarifications, which apply broadly, Private Clarifications are binding only for the applicant and the specific case in question—provided no material facts change.

This mechanism allows businesses and individuals to resolve uncertainties in tax treatments with confidence and authority.

Who Can Apply?

The following parties are eligible:

1. A taxpayer seeking clarification for a matter related to themselves

2. A representative member of a Tax Group

3. A tax agent or legal representative acting on the taxpayer's behalf

4. Multiple applicants jointly, in exceptional cases where the matter is shared

What Matters Qualify?

Clarifications must relate to:

1. Federal taxes or related penalties

2. specify the relevant tax type

3. concern the taxpayer's own facts and circumstances (not third-party cases)

4. Must include relevant, complete documentation for the FTA to determine correct tax treatment

5. Improperly filed or irrelevant requests will be rejected by the FTA.

How to Apply?

Applications are submitted via the EmaraTax portal, in either English or Arabic, with:

1. A cover letter outlining the issue and the applicant’s view

2. Supporting documents (e.g., contracts, invoices, prior advice)

3. Payment of fees (AED 1,500 for one tax type; AED 2,250 for multiple)

Once submitted, applicants receive a unique request number linked to their TRN.

Timelines to Expect

FTA will respond:

1. Within 50 business days for indirect taxes (VAT, Excise)

2. Within 60 business days for Corporate Tax

These timelines start from submission or when any requested additional info is provided. In complex cases, the FTA may extend the review period.

Why It Matters

Uncertainty in tax application can be costly. The Private Clarification process empowers taxpayers to proactively resolve grey areas, reducing compliance risks and gaining peace of mind.

How AMCA Can Assist

At AMCA, we help you prepare robust Private Clarification requests that:

• Clearly articulate your position

• Meet all FTA requirements.

• Include solid documentation to support your query.

Avoid penalties. Eliminate doubt. Let AMCA guide you.

Need Tax Clarity?

Contact AMCA today for professional support in submitting your Private Clarification request to the FTA.

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