A Clarification is an official document issued by the FTA in response to an inquiry from the applicant regarding the tax treatment of specific transactions. The primary objective of the Clarification is to provide guidance concerning the FTA’s interpretation of the tax legislation and its proper application to the circumstances outlined in the application. It is essential to note that while the FTA endeavors to furnish a response based on the information provided by the applicant, the FTA does not undertake to verify the accuracy of the facts and will rely solely on the information provided.
The clarification issued by the FTA exclusively pertains to the applicant and the specific transaction(s) for which it was sought. It is important to note that the FTA’s response does not establish a precedent that can be applied to other individuals or to the applicant for substantially different transactions.
Instances where clarification requests will not be accepted
The FTA will not provide clarification in the following instances:
- The clarification form is not filled correctly or is incomplete
- The clarification request is not clear
- The Application is submitted by a person other than an authorised signatory
- A previous clarification has already been issued to the person on the same matter
- The clarification request is about transactions which the FTA believes are for the purposes of avoiding tax or seeks tax planning advice
- The application is related in any way to a tax inspection, audit, or assessment by the FTA
The following are not Clarification requests and may need to be addressed through a more appropriate channel:
- Reconsideration request
- Administrative penalty waiver request
- Administrative penalty payment by instalment request
- Special Input Tax Apportionment method request
- Administrative exception request
- System technical enquiries
- Other matters not pertaining to the interpretation of the relevant tax law in the context of specific facts
How to apply?
The person may submit the Clarification form via the concerned person’s Emara tax portal on the FTA’s website. Please refer to the relevant Emara tax guide for more information on the process to submit the application.
Who can submit the clarification form on behalf of a person?
Submission of a clarification can be done by:
- Appointed tax agents
- Appointed legal representatives
If the person is a member of a tax group, the request should be submitted by the authorised signatory of the representative member of the tax group.
Tax advisors (who are not registered tax agents) are not permitted to submit any Clarification requests on behalf of another person.
What are the fees for the request submission?
The field of calculated fees are pre-populated based on the number of tax types selected:
- Value Added Tax
- Excise Tax
- Corporate Tax (This option will be available from the date Corporate Tax Clarifications requests are accepted)
If only one tax type is selected the fee is AED 1,500 and AED 2,250 if more than one tax type is selected.
Response from the FTA to a Clarification request
FTA will take up to 50 business days to issue a clarification. Kindly note that requests or further information submitted after 3 pm on a business day, during a weekend or a federal public holiday, will be regarded as being received on the following business day.
The FTA may extend the above-mentioned time limit in some complex cases and you will be notified about the same.
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How Spectrum can help you?
If you have any questions or need further clarification regarding your tax inquiries, please don’t hesitate to reach out to us. We are here to assist you with any clarification requirements you may have, ensuring that you receive the guidance necessary for navigating your specific transactions with the FTA. Your understanding is our priority, and we look forward to helping you with your tax-related queries.
Contact us today for a consultation at +971 4 2699329 or email [email protected] to get all our queries addressed.
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