Certainty is an important hallmark of an efficient tax regime, and it is considered international best practice to create a stable tax environment in which Persons can be certain about their Corporate Tax treatment.

Tax clarifications provide an opportunity for Persons to obtain certainty on their tax position upfront. A Person can apply to the FTA for a clarification regarding the application of the Corporate Tax Law.404

The FTA may undertake an assessment of a Person’s Corporate Tax affairs under specific circumstances and conditions to be prescribed by the FTA.405

If the tax position reported by the Taxable Person is not accurate, or administrative requirements have not been fulfilled, the Taxable Person may be liable for penalties under the Tax Procedures Law and the Corporate Tax Law.406