GTL Summary:

Article 38 outlines the procedure for a Taxpayer to apply for a refund of a credit balance that exceeds their Payable Tax and Administrative Penalties. The application must generally be submitted within five years from the end of the relevant Tax Period. The start date for this period varies depending on whether the credit arose from an excess payment, a submitted Tax Return/Voluntary Disclosure, or other circumstances. The Article specifies exceptions, granting a one-year or 90-day extension if the credit arises near or after the five-year deadline. The Authority reviews all applications, and failure to meet these deadlines results in the right to claim a refund lapsing.

Document Type: Tax Law Article
Law: Tax Procedures (FDL No 28 of 2022, as amended)
Article Number: 38
Country: 🇦🇪 UAE
Location: Title 5 - Refund and Collection of Tax › Chapter 1 - Refund of Tax
Order: 38
Last updated at: 2026-02-20 14:31:33 UTC

Title 5 - Refund and Collection of Tax

Chapter 1 - Refund of Tax

Article 38 - Application for Refund of Credit Balance [11][G13]

  1. A Taxpayer may apply for a refund of any [credit balance where he is entitled to a refund under the provisions of the Tax Law, where it was established that such credit balance is in excess of the Payable Tax and Administrative Penalties, pursuant to the procedures specified in the Executive Regulations.

  2. The refund application must be submitted within a period not exceeding (5) five years from the end of the Tax Period to which any of the following applies, as the case may be: [12]

    1. The excess payment was made, if the credit balance resulted from an excess Tax payment.

    2. The Tax Return or Voluntary Disclosure was submitted or the Tax Assessment was issued, if the credit balance resulted from a Tax Return or a Voluntary Disclosure submitted to the Authority, or otherwise from a decision issued by the Authority.

    3. The credit balance arose, in any other cases.

  3. As an exception to the provisions of Clause 2 of this Article, if the credit balance arose as a result of a decision issued by the Authority after the expiry of the (5) five years period referred to or during the last (90) ninety days thereof, the Taxpayer may submit the refund application within one year from the date on which this balance arises.

  4. Without prejudice to the provisions of Clause 3 of this Article, if the credit balance arose in any other case after the expiry of the (5) five years period referred to or during the last (90) ninety days thereof, the Taxpayer may submit the refund application within (90) ninety days from the date on which this balance arises.

  5. The Authority shall review the application submitted under this Article and notify the Taxpayer of its decision as to whether it has accepted or rejected the application.

  6. If the refund application is not submitted according to the deadlines provided for in this Article, the right to claim a refund of the excess Tax paid or the credit balance shall lapse.

Footnotes

[11]Article amended as per Federal Decree-Law No. 17 of 2025.

[12]Article 3 of the Federal Decree-Law No. 17 of 2025 includes the following transitional provision:

1. A Taxpayer who is entitled to a refund of a Tax or credit balance, where the period of (5) five years has lapsed from the end of the Tax Period referred to in Clause 2 of Article 38 of Federal Decree-Law No. 28 of 2022 referred to above, may submit to the Authority an application for a refund of this credit balance or utilize it in the payment of Tax liabilities or Administrative Penalties, provided that this request is submitted within a period not exceeding a year from the effective date of this Decree-Law [1 January 2026].

GTL Notes

[G13]Article amended, effective from 1 January 2026. Prior to its amendment, the Article read as follows:

Application for tax refunds

1. A Taxpayer may apply for a refund of any Tax he has paid if he is entitled to a refund under the Tax Law and it appears that the amount he has paid is in excess of the Payable Tax and Administrative Penalties, pursuant to the procedures specified in the Executive Regulations.

2. The Authority shall review the application submitted under Clause 1 of this Article and notify the Taxpayer of its decision as to whether it has accepted or rejected the application.

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