On 31 January 2022, the Ministry of Finance (MoF) of the United Arab Emirates (UAE) announced that the UAE will introduce a Federal Corporate Tax (CT) which is a form of direct tax levied on the net income or profits of corporations and other businesses. The UAE CT regime will become effective for financial years starting on or after 1 June 2023. UAE CT is a Federal tax and will therefore apply across all Emirates.
UAE intended to introduce a competitive CT regime based on international best practices that will cement the UAE’s position as a leading global hub for business and investment, and accelerate the UAE’s development and transformation to achieve its strategic objectives. Introduction of a CT regime reaffirms the UAE’s commitment to meeting international standards for tax transparency and preventing harmful tax practices.
How Can We Assist You?
The developments in relation to TP in the UAE have far-reaching tax and non-tax/operational implications for affected businesses. Alongside TP, these implications may also relate to legal structure, business model, contracting, accounting, profit and systems and data organization, and the organization of the tax function with a potential impact for various stakeholders within organizations. Considering the timeframe left to prepare for the implementation of TP rules, companies should start assessing the impact for their business and what they need do in order to be prepared given the complexity of these rules.
We can assist you with the following:
- Analyze the inter-company transaction flows and set a robust TP policy
- Advice on substance test, appropriate business models and remuneration mechanism from a TP and Tax standpoint
- Tax impact analysis factoring TP and BEPS implications
- Ensure consistency with OECD and Global TP practices, BEPS readiness
- TP inter-play with CT, VAT, Customs, Accounting, Valuations etc.
- Undertaking TP benchmarking analyses, Drafting inter-company agreement, Group TP policy, SOPs etc.
- Assist with TP Compliances (Disclosure Form, Local File, Master File, Country-by- Country-Report)
- Representations before FTA in due course
- Alternative Dispute Resolution/Preventions (APA, Safe Harbour, MAPs), when implemented
Here is our UAE Transfer Pricing Guide to it. Click on the image to download the pdf file.
Why Spectrum Auditing?
Reach out to Spectrum Auditing for any details pertaining to UAE Corporate Tax. Call us today for any kind of assistance at +971 4 2699329 or WhatsApp +971 50 9866 466 or email [email protected] to get all your queries addressed. Spectrum is your partner in your success.