How the UAE tax dispute resolution committee resolves tax disputes

What is the UAE tax dispute resolution committee?

The UAE tax dispute resolution committee (TDRC) is an independent body that reviews objections from taxpayers who disagree with a decision made by the Federal Tax Authority (FTA). It sits between the FTA reconsideration stage and the courts. The TDRC examines the facts, hears both sides, and issues a binding or non-binding decision depending on the disputed amount.

If you run a business in the UAE, understanding the TDRC is a key part of staying on top of FTA compliance in the UAE. Disputes can arise from VAT assessments, corporate tax adjustments, penalty notices, or denied refund claims. The TDRC gives you a structured, relatively fast path to challenge those decisions before resorting to litigation.

Where the TDRC fits in the dispute process

The UAE tax dispute process follows a strict sequence. You cannot skip a step. Here is the order:

1. FTA reconsideration request. You must first ask the FTA to review its own decision. Learn more about the FTA reconsideration request in the UAE.
2. TDRC objection. If the FTA rejects your reconsideration or you disagree with the revised decision, you file an objection with the TDRC.
3. Federal courts. If either party disagrees with the TDRC decision, the case can move to the UAE tax court procedures stage.

Filing directly with the TDRC without first completing the reconsideration step will result in your objection being rejected.

Legal basis for the TDRC

The TDRC was established under Federal Decree-Law 7 of 2017 on Tax Procedures, later amended by Federal Decree-Law 17 of 2024. Cabinet Decision 23 of 2018 set out the committee's formation, jurisdiction, and procedural rules. Additional amendments have refined timelines and fee structures.

Who can file an objection with the TDRC

Any taxable person, tax agent, or legal representative who has received an FTA reconsideration decision may file an objection. This includes:

• Companies registered for VAT (5% standard rate under Federal Decree-Law 8 of 2017).
• Entities subject to corporate tax under Federal Decree-Law 47 of 2022.
• Businesses that received excise tax assessments.
• Individuals or entities penalised under Cabinet Decision 106 of 2025, with penalties ranging from AED 2,500 to AED 50,000 per violation.

You do not need a lawyer to file, but professional representation is common for larger disputes.

Deadlines for filing a TDRC objection

Timing is critical. Missing a deadline means losing your right to challenge the FTA decision at this stage.

All deadlines are counted in business days, not calendar days. Public holidays and weekends (Saturday and Sunday) are excluded.

How to file a TDRC objection

Step 1: Gather your documents

Before filing, prepare the following:

• A copy of the original FTA decision you are disputing.
• The FTA reconsideration decision (or proof that the FTA did not respond within 40 business days).
• Your Tax Registration Number (TRN).
• Supporting evidence: invoices, contracts, bank statements, accounting records, correspondence with the FTA.
• A clear written statement explaining why you believe the FTA decision is wrong.

Step 2: Submit the objection

Objections are submitted to the relevant TDRC secretariat. The UAE has multiple committees covering different emirates. Your submission must include:

• The completed objection form.
• All supporting documents.
• Payment of the objection fee (see below).

Step 3: Attend the hearing

The TDRC will schedule a hearing. Both you (or your representative) and the FTA present arguments. The committee may request additional documents or clarification.

TDRC objection fees

Filing fees depend on the disputed amount. If the TDRC rules in your favour, the fee is typically refunded.

Fee schedules can change. Always confirm the current fee with the TDRC secretariat before filing.

What happens after the TDRC decision

The outcome depends on the disputed amount and whether either party accepts the decision.

Binding vs. non-binding decisions

If the total tax and penalties in dispute are AED 100,000 or less, the TDRC decision is final and binding on both parties. Neither side can appeal to the courts.

If the disputed amount exceeds AED 100,000, the decision is non-binding. Either the taxpayer or the FTA may escalate the matter to the Federal Court of First Instance within 20 business days. Read more about UAE tax court procedures if you need to understand that next step.

Possible TDRC outcomes

• Full acceptance of your objection. The FTA decision is overturned. Any overpaid tax or penalty is refunded.
• Partial acceptance. The committee adjusts the assessed amount. You pay the revised figure.
• Rejection. The FTA decision stands. You may appeal to court if the amount exceeds AED 100,000.

Common reasons businesses file TDRC objections

Most TDRC cases involve one or more of these issues:

• Disagreement over a VAT assessment or additional tax liability.
• Penalties imposed for late filing or late payment.
• Denied VAT refund claims.
• Corporate tax adjustments, especially around the AED 375,000 zero-rate threshold or the 9% rate above it.
• Disputes over whether a voluntary disclosure for UAE taxes was processed correctly.
• Rejected penalty waiver requests.

Tips for a stronger TDRC case

Winning at the TDRC stage saves time and money compared to going to court. Keep these points in mind:

• File on time. Late objections are automatically rejected.
• Be specific. State exactly which part of the FTA decision you dispute and why.
• Provide evidence. Attach every document that supports your position. The committee relies heavily on documentary proof.
• Reference the law. Cite the relevant article of the VAT law, corporate tax law, or tax procedures law.
• Stay organised. Number your exhibits and create a summary index for the committee.
• Consider professional help. A tax agent or legal adviser experienced in UAE tax disputes can improve your chances.

How the TDRC connects to other compliance steps

The TDRC does not exist in isolation. It is one part of a broader FTA compliance framework. Before you reach the dispute stage, proactive steps can reduce risk:

• File accurate VAT returns within 28 days of each period end.
• Submit corporate tax returns within 9 months of your financial year end.
• Use voluntary disclosure with correct timing to fix errors before the FTA finds them.
• Prepare for UAE e-invoicing under the Peppol 5-corner DCTCE model, with Phase 1 go-live on January 1, 2027 for businesses with AED 50M+ revenue.

Staying compliant from the start is always cheaper than resolving disputes after the fact.

If you want to make sure your invoicing and tax data are accurate from day one, get UAE e-invoicing pricing and see how EInvoice Direct works for your business.