The Federal Tax Authority (FTA) has issued a Decision No. 9 of 2025 laying down the following conditions based on which it may deny the refund of any residual amounts where the Person is subject to Tax Audit:
- Significant potential tax liabilities identified based on information during the audit
- Sufficient grounds to believe that the Person is involved in Tax Evasion
- Refund request relates to goods involved in tax-evasion within the supply chain
- Any tax returns for any tax type remain outstanding
- Failure to provide requested information on time during the course of Audit
- Lack of cooperation with the FTA during the audit.
The Decision would be effective from 1 January 2026.