What Is Meant by the Tax Dispute Resolution Committee?
Dubai is widely recognized for its tax-friendly regulatory environment, making it a preferred destination for businesses worldwide. While these favorable regimes offer significant advantages, businesses and individuals are required to remain fully compliant with all applicable tax laws and regulations.
In certain situations, disagreements may arise between taxpayers and the Federal Tax Authority (FTA) regarding tax assessments or procedures. To address such matters, the UAE has established the Tax Dispute Resolution Committee, which provides a structured and transparent mechanism for resolving tax disputes in a fair and efficient manner.
What Is TDRC?
The Tax Disputes Resolution Committee (TDRC) is an official body established in the UAE to resolve tax-related disputes between taxpayers and the Federal Tax Authority (FTA). Its primary objective is to address disagreements, misunderstandings, or objections in a fair, efficient, and transparent manner.
Each TDRC is composed of two registered tax experts and is chaired by a member of the judicial authority, ensuring balanced decision-making based on both technical tax expertise and legal oversight.
How Does TDRC Resolve Tax Disputes?
The Tax Disputes Resolution Committee (TDRC) plays a key role in ensuring that tax matters in the UAE are handled in an effective, fair, and transparent manner. The committee has the authority to review and decide on objections raised by taxpayers against decisions issued by the Federal Tax Authority (FTA).
The TDRC may intervene in the following situations:
When a taxpayer raises an objection to an FTA decision issued in response to a reconsideration request
When the FTA fails to provide an adequate or timely response to a reconsideration request
When a taxpayer is not satisfied with the FTA’s decision and submits an objection within 40 days from the date the decision is notified
Cases Where TDRC May Not Accept an Objection
The TDRC may reject or decline to consider an objection in certain circumstances, including:
If a reconsideration request was not submitted to the FTA before approaching the TDRC
If the full tax amount due has not been paid by the taxpayer
If the objection is submitted after the 40-day deadline
Process of Resolving Tax Disputes
When the Tax Disputes Resolution Committee (TDRC) receives an objection, it follows a structured process and strict timeline to ensure fair and efficient resolution:
Review and Decision: Within 20 days of receiving the objection, the TDRC reviews the case and issues its decision.
Notification: Both the taxpayer and the Federal Tax Authority (FTA) are notified of the decision within 5 days of issuance.
Finality of Decision: If the disputed tax amount or related penalties are AED 100,000 or less, the TDRC’s decision is considered final, and no further review is conducted. Taxpayers must first approach the TDRC before taking the matter to any court of law.
The UAE’s TDRC provides a transparent and efficient mechanism for resolving tax disputes, allowing taxpayers and the FTA to settle disagreements quickly. This clear process enables businesses to make informed internal decisions, reduces uncertainty, and ensures compliance with tax regulations.
Furthermore, if taxpayers remain unsatisfied with the TDRC’s decision, they have the option to appeal in court, providing multiple avenues for dispute resolution. This framework reflects the UAE’s balanced approach—maintaining strict regulatory oversight while offering fair treatment and support to taxpayers, creating a favorable environment for businesses to thrive.
Why Choose Taxoryx for UAE Tax-Related Disputes?
Handling tax-related matters requires professional guidance. Both the Federal Tax Authority (FTA) and the Tax Disputes Resolution Committee (TDRC) expect businesses to be fully aware of applicable tax rules and regulations. Filing a proper and justified reconsideration request or objection requires a thorough understanding of these laws.
By working with Taxoryx, businesses can confidently navigate the dispute resolution process. Our team of certified tax professionals provides expert guidance on reconsideration applications, objections, and other tax-related matters, ensuring compliance while protecting your interests.
With deep knowledge of UAE tax laws, experience across diverse industries, and a reputation for delivering customized solutions, Taxoryx ensures that every client receives tailored support to effectively manage tax disputes.
Connect with Taxoryx today to learn more about how we can assist you with your UAE tax matters.
