Executive Summary On 30 December 2025, the UAE Federal Tax Authority (FTA) issued comprehensive guidelines on Advance Pricing Agreements (APAs), marking a significant milestone in the country’s corporate tax framework. This development provides multinational corporations and businesses conducting transfer pricing transactions with a structured mechanism to obtain tax certainty for.
🔹 1. What is Transfer Pricing (TP)? Transfer Pricing refers to the pricing of transactions between related parties or connected persons, such as: Sale or purchase of goods Provision of services Loans or interest payments Use of intellectual property (royalties, licenses, etc.) All such transactions must comply with the Arm’s.
Free Zones are an integral part of the UAE economy and play a crucial role in driving economic growth of both in the UAE and internationally. Business setup in Free Zones are preferred by overseas investors as it offers a gamut of advantages and streamlined administrative procedures. Recognizing the importance.
The United Arab Emirates (UAE) offers a compelling environment for international business through its establishment of Offshore Companies. These entities hold legal recognition within the UAE, granting them the ability to engage in contractual agreements and other lawful transactions. However, Offshore Companies has its unique features, benefits and restrictions and.
Frequently Asked Questions Q1. When is an individual required to register for Corporate Tax? Ans- An individual is required to register for Corporate Tax purposes only if the total turnover derived from their businesses or business activities exceeds AED 1 million in a Gregorian calendar year. Q2. When can an.
As per the Article 18 of Federal Decree Law No. (47) Of 2022 of UAE Tax Legislation read with Ministerial decision No 265 of 2023 and Cabinet Decision No 100 of 2023, in order to claim the benefit of zero rate tax regime provided for Qualified Free Zone Persons (QFZP),.
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Permanent establishment (PE) is a critical concept in international tax law that determines the taxable presence of a foreign entity in a country. It plays a crucial role in allocating taxing rights between countries and preventing double taxation. As has been accepted internationally and under the OECD framework that the.
UAE Government first introduced Tax Residency regulations in November 2022 vide cabinet Decision No. 85 of 2022 which laid down the conditions for determining the tax residency for an Individual and a Legal Person. Thereinafter on 22nd February, 2023 MoF, UAE issued Ministerial Decision No. 27 of 2023 for implementation.
The UAE Corporate Tax becomes applicable from 1st June, 2023 promulgated vide Legislature Federal DecreeLaw No. 47 of 2022 The Ministry of Finance in the UAE Government has been issuing various directives as mandated under the law. In terms of the same, the Ministry of Finance issued the Ministerial Decision.
