Transfer pricing (TP) regulations in the UAE were introduced approximately a year ago, together with profit tax legislation. However, some taxpayers are already approaching the deadlines for filing profit tax declarations , which also require taxpayers to reflect information on TP compliance.
As we previously indicated in our review (available in Russian), compliance with TP requirements is one of the main criteria for applying the 0% corporate tax rate for FTA residents (Free Trade Zones, FZ). However, non-compliance with TP rules by companies applying the reduced tax rate and those on the general tax regime can potentially result in additional assessments by the tax authorities at a rate of 9%.
Read more in our review.
