UAE: User guide for appeals under economic substance regulations

The tax authority has started issuing administrative penalties for various default(s) by licensees.

Under economic substance regulations

The tax authority—having been appointed as the “national assessing authority” for purposes of the economic substance regulations—is authorized to conduct economic substance audits, impose penalties, and decide on appeals.

Most licensees have gone through two rounds of filings for the economic substance notification and one round of filing for the economic substance report. The tax authority has also started issuing administrative penalties for various default(s) by licensees.

In relation to the penalties imposed and in order to exercise its responsibility with regard to appeals, the tax authority recently issued a user guide to provide details of economic substance-related appeal procedures and to address related issues.

Read an October 2021 report prepared by the KPMG member firm in the United Arab Emirates


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