Chapter Two
The Authority's Establishment and Competencies: The Authority's Establishment and Competencies
Article (4)
The Authority shall be competent to:
1. Administer, levy and implement federal taxes and related fines, distribute their revenues
and enforce the applicable tax procedures in the State. In order to achieve this, the
Authority may:
a. Enforce the applicable laws and regulations with regard to federal taxes and related
fines.
b. Settle the Authority's financial obligations.
c. Enforce the agreements preventing double taxation that are ratified by the State.
d. Avoid cases of double taxation and combat tax evasion in cooperation with the
relevant entities inside and outside the State.
e. Decide on applications for registration in the existing tax systems in the State, and
allocate tax numbers for registration in these systems.
-- 3 of 11 --
Federal Decree-law of 2016 Establishing Federal Tax Authority 4
f. Propose legislation relevant to administering, levying and implementing federal
taxes and related fines, and distributing their revenues, in coordination with the
Ministry.
g. Collect the data, information and statistics relevant to federal taxes and related fines.
h. Create and maintain registers for the registered taxpayer in accordance with what is
set out in the tax laws.
i. Issue the necessary directives and clarifications for the taxpayer regarding their
obligations to federal taxes and related fines, in accordance with the mechanisms
issued by a resolution of the Board.
j. Coordinate with the Federal Government, the governments of the Emirates and the
taxpayer concerning all the issues regarding federal taxes and related fines.
k. Contract a number of entities to carry out certain works required by the Authority to
exercise its competencies.
l. Exchange information and expertise with states, and international federal
organisations and authorities that are related to tax.
m. Coordinate with the competent entities with regard to becoming a member of
international federal organisations and authorities that are related to tax.
n. Represent the State at international and regional conferences and meetings whose
activity relates to tax affairs, in coordination with the competent entities in the State.
o. Inspect the registers, files and documents specific to the taxpayer.
p. Review and audit the tax declarations and reports submitted to the Authority,
determine their approval or amendment, or request any additional information or
documents.
q. Issue the certificates relating to federal taxes.
r. Enforce a mechanism for settling disputes between the taxpayer and the Authority, in
accordance with the applicable legislations.
s. Request access to any existing data or information from any third party who has
information relating to a person under tax audit which may be essential for carrying
out the tax audit.
t. Request that any person who has dealings with a person under tax audit provides
the Authority with information about such dealings.
-- 4 of 11 --
Federal Decree-law of 2016 Establishing Federal Tax Authority 5
2. Enforce the rules and procedures for regulating cooperation between the State and other
states, and international and regional organisations, authorities and federations with
regard to tax systems, and implement the requirements specific to the exchange of
information, in accordance with what is set out in the resolutions issued by the Cabinet
in this regard, based on the Minister's recommendation.
3. Any other competencies authorised to the Authority in accordance with the laws or
regulations and resolutions issued by the Cabinet.
Chapter Three
Management of the Authority
