UAE Updates Guidance on Private Tax Clarifications

The United Arab Emirates Federal Tax Authority (FTA) has released an updated version of its guidance on Private Clarifications, the administrative mechanism through which taxpayers may request official guidance on the application of UAE tax legislation to specific factual situations.

The revised guidance reflects recent developments in the UAE tax framework and provides additional procedural information on how clarification requests should be submitted. Particular attention is given to matters relating to the Pillar Two Top-up Tax, following the introduction of the global minimum tax rules within the UAE tax system.

Private Clarifications are an important tool for businesses seeking greater certainty when dealing with complex tax matters. Although they do not constitute generally binding legislation, they enable taxpayers to obtain the FTA's interpretation before taking significant tax positions, thereby helping reduce uncertainty and supporting voluntary compliance.

The updated guide also clarifies who is eligible to submit a request. Besides the taxpayer concerned, certain authorised representatives may file applications, while designated filing entities may do so in relation to Pillar Two matters where permitted under the applicable rules. Requests must continue to be submitted through the EmaraTax platform and comply with the procedural requirements established by the FTA.

In addition, the guidance provides further clarification on the scope of the procedure, emphasising that requests should relate to genuine areas of uncertainty under the tax legislation and outlining situations in which an application may be declined. It also summarises key procedural aspects, including indicative response times and the applicable administrative fees.

The update comes at a time when the UAE tax framework continues to evolve rapidly. The introduction of Corporate Tax and the implementation of the OECD's Global Minimum Tax rules have increased the need for clear administrative guidance, particularly for multinational groups operating across multiple jurisdictions.

For businesses with operations in the UAE, the revised guidance reinforces the FTA's commitment to improving transparency, strengthening tax certainty and providing practical support as taxpayers adapt to the country's expanding tax regime.