The Federal Tax Authority FTA has introduced a new policy regarding the refund of fees paid for private clarification services, effective August 1. The “private clarification” service allows companies to request detailed explanations on specific tax issues from the FTA. Since June 1, 2023, companies have been required to pay for this service.
Under the new policy, if a company submits a request for clarification on one or more taxes but does not receive a response, the full fee will be refunded. In cases where a clarification request covers multiple taxes but a response is provided for only one, a partial refund will be issued. The refund amount will be calculated based on the difference between the fee paid for multiple taxes and the fee for a single tax.
Cases Eligible for Fee Refunds
According to Federal Tax Authority Decision No. 5 of 2024, dated July 19, the following scenarios qualify for a refund of the clarification fee:
- Withdrawal of Request: If the applicant withdraws the private clarification request within two business days of submission.
- Non-registered Applicants: If the request is submitted by an entity not registered for Corporate Tax and the inquiry is not related to tax registration.
- Ongoing Tax Audit: If the applicant is under tax audit by the FTA at the time of submitting the request.
- Decision-Related Inquiries: If the request pertains to procedures resulting from a decision already issued by the FTA.
- Duplicate Requests: If the request is identical to another private clarification request submitted by the same applicant on the same subject and with the same documents, which is already being processed by the FTA.
- Pending Legislative Changes: If the request concerns an issue that the FTA is currently coordinating with the Ministry of Finance to amend the relevant tax legislation.
These measures aim to provide clarity and fairness to taxpayers, ensuring they receive value for their payments and that the FTA’s services are transparent and efficient.
