Tax compliance is often easy to overlook when filings are submitted on time and operations are running smoothly.

But compliance is not only tested when a return is filed. It is tested when the Federal Tax Authority asks for records, questions a calculation, delays a refund, or issues an audit notice.

That is why the latest amendments to the UAE Tax Procedures Executive Regulation matter.

On 23 March 2026, the UAE Cabinet issued Cabinet Decision No. 17 of 2026, amending Cabinet Decision No. 74 of 2023 on the Executive Regulation of Federal Decree-Law No. 28 of 2022 on Tax Procedures. The amendments came into effect on 1 April 2026, which means they are already in force.

For businesses, this is not simply a legal update for tax professionals. It affects how companies keep records, update tax registration details, correct mistakes, respond to the Federal Tax Authority, manage audits, and apply for refunds.

In simple terms, the UAE tax environment is becoming more structured, more document-driven, and more time-sensitive.

Tax compliance is no longer only about filing on time

Many businesses think of tax compliance as a calendar exercise: file the return, pay the amount due, and move on.

The latest changes are a reminder that compliance is broader than that.

A business must be able to show what it filed, explain how figures were calculated, and provide supporting documents when requested. If the Federal Tax Authority asks questions, the strength of the business’s response will depend on how well its records, systems, and internal procedures have been maintained.

1. Records must be complete, organized, and accessible

Businesses are required to maintain proper accounting records, commercial books, invoices, contracts, licenses, payroll records, fixed asset records, inventory records, and other supporting documents.

In most cases, records must be retained for 5 years. For real estate-related records, the retention period is generally 7 years. These periods may be extended in certain situations, including where there is an audit, dispute, voluntary disclosure, or pending refund claim.

For business owners, the practical lesson is clear: documents should not only exist, they should be easy to retrieve.

If the Authority asks for supporting records, the business should not be starting the search from zero. Contracts, invoices, payroll files, accounting ledgers, inventory records, and tax working papers should be stored in a way that allows the company to respond quickly and confidently.

2. Tax registration details must reflect the business as it operates today

Businesses should also review whether their tax registration details are up to date.

If a company changes its address, email, trade license activities, legal structure, business activity, or place of business, the Federal Tax Authority may need to be notified within the applicable timeframe.

This may sound administrative, but it is important. A tax profile that no longer matches the company’s licence, activities, or communication details can create unnecessary compliance risk.

For growing businesses, this is especially relevant. Changes happen often: new office locations, amended trade licence activities, new business lines, restructuring, or changes in official contact details. Each of these should be reviewed from a tax compliance perspective.

3. Mistakes should be corrected quickly

Errors in tax returns, tax assessments, or refund applications should not be ignored.

Where a mistake is identified, the business may need to correct it through a Voluntary Disclosure. In many cases, action is required within a specific period from the date the business becomes aware of the error, and the treatment may depend on whether the error is above or below the relevant AED 10,000 threshold.

The key point is timing.

Once a business becomes aware of an error, it should assess the issue immediately. Waiting until the next filing cycle, or until the Authority raises a question, can increase exposure.

A strong internal tax process should therefore include a clear escalation route: who reviews errors, who decides whether a Voluntary Disclosure is required, and how quickly corrective action is taken.

4. Tax audits require preparation before the notice arrives

The Federal Tax Authority has the power to inspect records, documents, assets, electronic data, and accounting systems.

Generally, the Authority must provide notice before a tax audit, and the taxpayer must be informed of the results after the audit has been completed.

However, businesses should not treat an audit notice as the moment to begin preparing.

By then, the company may already be under pressure to locate documents, explain transactions, reconcile records, and provide access to systems. A business that keeps files organized throughout the year will always be in a stronger position than one that reacts only after receiving a notice.

Audit readiness is not panic preparation. It is a discipline.

5. Refunds may be delayed if filings are incomplete

Where a business has a credit balance, it may apply to the Federal Tax Authority for a refund.

However, refund applications can be affected if required tax returns have not been submitted. The Authority generally has a set period to decide on a refund application, or another notified period where additional time is required.

For businesses relying on refunds, this is not only a compliance issue. It is a cash flow issue.

Incomplete filings, missing returns, or unresolved tax matters can delay funds that the business may be expecting to receive. Companies should therefore treat refund readiness as part of their broader financial planning.

6. Confidentiality remains protected, but with defined exceptions

The regulation also confirms that taxpayer information must generally remain confidential.

Federal Tax Authority employees and authorized persons are required to protect taxpayer information. However, disclosure may be permitted in certain cases, including court orders, approved government arrangements, international agreements, or requests made by the taxpayer, legal representative, or tax agent.

For businesses, this reinforces the importance of using authorized representatives carefully and ensuring that tax agents, legal representatives, and internal teams are properly aligned.

What businesses should review now

Because the amendments are already in effect, companies should not wait for an FTA request, audit notice, refund delay, or filing issue before reviewing their internal tax procedures.

A practical review should include the following questions:

Are the company’s tax registration details up to date?

Are accounting records complete, accurate, and accessible?

Are invoices, contracts, payroll records, licenses, inventory records, and fixed asset records properly stored?

Is the company retaining records for the correct period?

Have any past filing errors been identified?

If errors were found, were they assessed for Voluntary Disclosure?

Are all required tax returns submitted?

Is the business prepared to respond to an FTA notice or audit request?

Are the right people internally responsible for tax documentation and response timelines?

Final thought

The UAE’s tax framework continues to mature.

For businesses, this means tax compliance is no longer limited to submitting returns on time. It requires structure, documentation, discipline, and readiness.

The safest approach is simple: keep records clean, update tax details on time, correct mistakes quickly, and ensure filings are complete.

The rules are already in force. Businesses that review their tax procedures now will be better placed to avoid unnecessary penalties, delays, and compliance issues later.

Source: Cabinet Decision No. 17 of 2026; UAE Ministry of Finance announcement; Federal Tax Authority legislation update.