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FTA Issues Updated Private Clarifications Guide – July 2026

The Federal Tax Authority (FTA) has published an updated Private Clarifications Guide, dated July 2026. The revised guide reflects recent legislative and procedural developments, most notably the introduction of guidance on clarification requests relating to the UAE Pillar Two Top-up Tax regime. It also provides additional guidance on the formulation of clarification requests and updates the position on advance pricing agreements and the scope of FTA materials that applicants must consider before submitting a request.

Key developments

  • Pillar Two Top-up Tax clarifications: The guide now expressly addresses eligibility and procedural requirements for Top-up Tax clarification requests. As a general rule, applicants must be registered for Top-up Tax. Limited exceptions apply where the request concerns registration, or where the applicant is an Excluded Entity or an Investment Entity located in the UAE.
  • Requests by a Domestic Designated Filing Entity: Where a Domestic Designated Filing Entity (DDFE) has been appointed, only the DDFE may submit a clarification request on behalf of the relevant entities or permanent establishments in the MNE Group. The request must be submitted through the DDFE’s EmaraTax account using the group-level Pillar Two Top-up Tax registration number. A request submitted independently by another group entity may be rejected.
  • Tax Agent eligibility: A Tax Agent registered with the FTA for Corporate Tax may submit a Top-up Tax clarification request on behalf of an eligible applicant.
  • QDMTT requests remain restricted: Clarification requests concerning the Qualified Domestic Minimum Top-up Tax (QDMTT) remain outside the scope of the service, except where the request relates to registration. The FTA has indicated that the commencement date for accepting requests on other aspects of the QDMTT legislation will be announced in Q4 2026.
  • Advance pricing agreements: The guide confirms that the FTA is currently accepting unilateral advance pricing agreement applications for domestic transactions between Related Parties. Applications relating to other types of advance pricing agreements will be accepted from a date to be announced by the FTA. Private clarifications cannot be used to obtain confirmation that a Related Party transaction satisfies the arm’s-length standard or is at Market Value.
  • Consistency between the EmaraTax form and cover letter: Where the questions stated in the EmaraTax application form differ from those included in the cover letter, the FTA will answer the questions as stated in the EmaraTax form. Applicants should therefore ensure that the questions are framed consistently and precisely in both documents.
  • Broader review of FTA publications: Before applying, taxpayers must consider not only FTA guides and public clarifications, but also other “information” published by the FTA. A clarification request may be rejected where the matter has already been addressed in such published material. Similarly, an issued clarification may cease to be effective where the FTA subsequently publishes an updated position on the same subject.

Overall, the updated guide reinforces the need for private clarification requests to be submitted by the correct applicant, through the appropriate EmaraTax profile, and with precisely aligned questions, robust technical analysis and complete supporting documentation.