UAE FTA PRIVATE CLARIFICATIONS ON CORPORATE TAX

Formally, such clarifications are legally binding only on the specific persons at whose request they were issued. In practice, however, we expect the UAE FTA to follow the approaches set out in these clarifications when dealing with other taxpayers as well.

The tax authority’s position is particularly relevant in the context of the corporate tax return filing campaign. One notable example is the position on transfer pricing adjustments:

“The mere fact that transactions with related parties and connected persons are reflected in the financial statements on non-arm’s length terms does not, in itself, deprive a taxpayer of the right to QFZP status, provided that the taxpayer makes self-initiated transfer pricing adjustments in the corporate tax return.”

We have prepared cards summarising the most interesting positions, which we also consider particularly significant for taxpayers. Some of them had not previously been reflected in legislation, decisions, or official guidance issued by the competent authorities.

Read them, assess how they may apply to your structures, and get in touch with us: the Global Aim team is here to protect the tax efficiency of your business in the UAE and beyond.