New FTA UAE Guidance on Transfer Pricing

The UAE Tax Authority (FTA) has released a new Guide offering 25 examples and explanations on transfer pricing (CTGTP1). The document takes into account OECD recommendations and is based on the Corporate Tax Law, emphasizing the importance of using this Guide for taxpayers. It covers a wide range of issues, including intra-group service situations and aspects of cost-sharing agreements.

Details in the Guide include explanations on organizing and payment for goods on behalf of related parties, as well as rules regarding payment delays for accounts receivable. It also addresses important matters related to international standards and regional differences in managing MNE groups.

Furthermore, the Guide promises to provide a sample disclosure form for transfer pricing information on the FTA website for Corporate Tax Law purposes. This Guidance is crucial for understanding tax aspects and can help avoid similar complexities faced by major companies such as Microsoft, eBay, and Apple.

Full text of this document you can find via this link.

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