Legal Services in Dubai

Corporate

Corporate Tax

Bylocal May 6, 2024September 30, 2024

What about Corporate Tax?

Following the enactment of Federal Decree Law No. 47 of 2022 regarding the Taxation of Corporations and Businesses, the Federal Tax Authority has released numerous publications offering comprehensive practical advice on various aspects outlined in the CT Law. In October 2023, the FTA issued a comprehensive Transfer Pricing Guide.

While not legally binding, the TP Guide is a helpful tool that sheds light on the application of Transfer Pricing provisions in the CT Law, specifically focusing on the Arm’s Length Principle. It brings the UAE TP regime in line with global standards set by the OECD TP Guidelines, stressing the significance of having proper documentation.

Various situations call for the application of the arm's length principle.

Recognize Related Parties,
Connected Persons, relevant transactions, and arrangements, and conduct a comparability analysis accordingly.
Choose the most suitable Transfer Pricing method, and determine the Arm’s Length Price.

What impact does it have on you?

If you are a Foreign Bank operating in Dubai or have plans to establish a presence in the city, it is essential to comprehend the impact of this Law and evaluate its implications to ensure conformity. We anticipate that the executive regulations, which will outline the implementation of the Law in greater detail, will be published in due course.