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Refund of Corporate Tax: Article 49 of Corporate Tax Law

Refund of Corporate Tax

When can the Application for a Refund be Made?

As per Article 49 of corporate tax Law, there may be instances where a taxable person has paid more than the corporate tax due under the law to the FTA through withholding or actual payment. In such a case, the taxable person can claim a corporate tax refund.

The Taxable Person may apply to the FTA for a refund in line with the requirements of the Tax Procedures Law in the following instances:

Withholding Tax Credit exceed Corporate Tax Payable

Corporate Tax Paid More Than Tax Actually Payable

Situations when Refund of Corporate Tax Not Available

There are some specific cases when a person can’t apply for a refund as mentioned below:

Amount of Tax disputed

Taxable Person is subject to Tax Audit

Order of Competent Court

Revision of Application for Refund of Corporate Tax

Tax Refund Procedures defined as per cabinet Decision no. 74 of 2023 are mentioned below:

The Taxpayers entitled to a refund under the Corporate Tax Law can submit a formal application to the FTA in the form and manner determined by the Authority.

Upon receipt of the Refund application, the FTA will assess it within 20 business days from the submission date. This timeframe may be extended if additional information is required, with due notification to the taxpayer.

Upon approval of the refund application, the FTA will initiate the repayment process within 5 business days of notifying the taxpayer in accordance with the repayment mechanism determined by the Authority.

The FTA may defer processing a refund request if the taxpayer has outstanding tax returns. Once all due returns are submitted, the refund, including any resulting excess amount, will be processed.

Set-off and Intimation by FTA

The FTA shall set off the amount requested to be refunded against any non-disputed tax or administrative penalties payable by the applicant taxpayer before refunding any amount.

Case Study

Green Tech FZ, a Dubai Media City company, discovers they overpaid corporate tax due to qualifying R&D expenses. Here's how the revised refund process helps them:

Possible Outcomes:

Seeking Professional Help for Claiming Refund of Corporate Tax

A tax consultant can be helpful in the following manner:


The tax refund procedures mentioned within the UAE Corporate Tax Law establish clear guidelines for eligible taxpayers seeking refunds under specific circumstances, such as overpayment or withholding tax credits exceeding the original tax liabilities.

After the taxpayer's refund application is made, the Federal Tax Authority (FTA) conducts a thorough assessment within a defined timeframe and ensures transparency and adherence to regulations. After successful assessment and approval, refunds are promptly processed, but sometimes, they are also delayed if there are outstanding tax returns.

It's important to note that non-compliance with tax regulations may incur penalties. Furthermore, the FTA's authority to set-off refund amounts against outstanding tax or penalties emphasizes the government's commitment to maintaining fiscal integrity.

Overall, these procedures describe the UAE's dedication to a fair, efficient, and compliant corporate tax environment.


1. Are GAAR Provisions applicable for Refund of Corporate Tax?

Yes, GAAR (General Anti-Avoidance Rule) provisions can be applicable for claiming a refund of Corporate Tax under the UAE Corporate Tax Law.

When evaluating a refund request, the FTA will consider the primary purpose behind the transactions or arrangements leading to the overpayment. If the main goal was to take undue advantage of the tax refund procedures and to avail fake refund benefits, then in such case, a GAAR challenge will apply.

2. Is there any limit for the minimum refund amount?

No, the UAE Corporate Tax Law does not currently specify a minimum refund amount

3. Who shall make the application for the Refund?

A taxpayer shall apply for a refund.