The Tax Point

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💡 An interesting update from the Federal Tax Authority in the UAE and great news for foreign investors with the freshly announced administrative ease measures!

The UAE Federal Tax Authority has recently released a Corporate Tax Guide on Corporate Tax Returns, offering critical insights for businesses operating in the UAE. We have summarized hereafter the main takeaways in relation to the transfer pricing (TP) aspects. 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐭𝐡𝐫𝐞𝐬𝐡𝐨𝐥𝐝𝐬 - R̲e̲l̲a̲t̲e̲d̲ p̲e̲r̲s̲o̲n̲s̲: To be reported only if the aggregate value with all Related Parties exceeds AED 40 million. Transactions with Related Parties where the aggregate transaction value per category exceeds AED 4 million, must be disclosed. (Note that Dividends declared between Related parties do not need to be disclosed and should not be taken into account in determining the AED 40 million or AED 4 million thresholds referred to above) - C̲o̲n̲n̲e̲c̲t̲e̲d̲ p̲e̲r̲s̲o̲n̲s̲: The Schedule is to be completed only if the aggregate value of transactions with Connected Persons (including their Related Parties) exceeds AED 500,000. Not all Connected Person transactions are required to be disclosed. The schedule should be completed for each Connected Person where the aggregate payment or benefit exceeds AED 500,000 per Connected Person. 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐀𝐝𝐣𝐮𝐬𝐭𝐦𝐞𝐧𝐭𝐬 - A̲d̲d̲i̲t̲i̲o̲n̲s̲ a̲s̲ a̲ r̲e̲s̲u̲l̲t̲ o̲f̲ a̲d̲j̲u̲s̲t̲m̲e̲n̲t̲s̲ t̲o̲ t̲r̲a̲n̲s̲a̲c̲t̲i̲o̲n̲s̲ w̲h̲i̲c̲h̲ w̲e̲r̲e̲ n̲o̲t̲ a̲t̲ a̲r̲m̲’s̲ l̲e̲n̲g̲t̲h̲: The aggregate value of TP adjustments that increase the Taxable Income (i.e. upward adjustments) should be recorded in the TP Schedule. This should not be netted off against TP adjustments that decrease the Taxable Income (i.e. downward adjustments). Even if the Taxpayer is required to complete the ‘Related Party transactions’ Schedule, this field still needs to be completed manually. Since not all transactions need to be reported in the Schedule, the value here should be equal or more than the adjustment reported in the Schedule. Same applies for transactions with connected persons. - D̲e̲d̲u̲c̲t̲i̲o̲n̲s̲ a̲s̲ a̲ r̲e̲s̲u̲l̲t̲ o̲f̲ a̲d̲j̲u̲s̲t̲m̲e̲n̲t̲s̲ t̲o̲ t̲r̲a̲n̲s̲a̲c̲t̲i̲o̲n̲s̲ w̲h̲i̲c̲h̲ w̲e̲r̲e̲ n̲o̲t̲ a̲t̲ a̲r̲m̲'s̲ l̲e̲n̲g̲t̲h̲: Any TP adjustment that decreases the Taxable Income (i.e. downward adjustment) will be allowed only upon a successful application to the FTA. Hence, only the aggregate value of such downward adjustments which have been approved by the FTA should be entered in the TP Schedule. If you a taxpayer is required to complete the ‘Related Party transactions’ Schedule, this field still needs to be completed manually. Since not all transactions need to be reported in the Schedule, the value here should be equal or more than the adjustment reported in the Schedule. Same applies for transactions with connected persons. Got any questions or need any clarifications on the above? Reach out to us on: contactus@thetaxpoint.com

🔔 Exciting times at The Tax Point! We are thrilled to share our story as featured in Business Magazine UAE, highlighting the incredible evolution of "The Tax Point" journey. Our commitment to simplifying tax solutions and empowering businesses has been at the core of everything we do. In this article, you’ll discover how we’ve navigated challenges and celebrated milestones, all while staying true to our mission of delivering unparalleled service. A huge thank you to everyone who has been part of this journey with us! Check out the full article here: [Business Magazine UAE] https://lnkd.in/ewvtJHBY #TheTaxPoint #TaxSolutions #BusinessGrowth #Teamwork #Innovation

🚀 Exciting News! We are thrilled to share that our founder, Safae Guennoun, will be delivering the module "𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗶𝗻 𝘁𝗵𝗲 𝗚𝗖𝗖" for the 2024 edition of Aurifer’s GCC Tax Course, in collaboration with Middlesex University in Dubai! With her extensive expertise, Safae Guennoun will provide invaluable insights that can help shape our understanding and application of these critical concepts. Join us to learn more about transfer pricing and secure your seat in the GCC Tax Learning certificate! #GCC #TransferPricing #MiddlesexUniversity #TaxCourse #ProfessionalDevelopment

📢 We are hiring! Join a growing tax team at The Tax Point for a Transfer Pricing Senior Manager full-time role based in Abu Dhabi! Check the job details in the link below and apply to join our growing tax team in the heart of the UAE capital! https://lnkd.in/d3Wki7TU

📑  𝑻𝒉𝒆 𝑻𝒂𝒙 𝑷𝒐𝒊𝒏𝒕 𝑩𝒓𝒊𝒆𝒇 𝑺𝒆𝒓𝒊𝒆𝒔 - September 2024 𝑬𝒅𝒊𝒕𝒊𝒐𝒏 📢 "Navigating Tax Compliance Waves in 2024: 10 Best Tips for Success" As tax regulations continue to evolve, staying compliant can feel like navigating stormy seas. Our latest article breaks down the top 10 tips you need to ensure smooth sailing through the complex world of tax compliance in 2024. Whether you're a seasoned tax professional or just getting started, this guide offers practical strategies to help you stay ahead of the curve, avoid common pitfalls, and optimize your tax processes. 🔗 Read the full article here https://lnkd.in/ePaMgaEr and let's master tax compliance together! #thetaxpoint #TaxCompliance #TaxTips #Finance2024 #BusinessSuccess

"Did you know" 🔔 Weekly 'Fun' & 'Fact' posts and valuable information are available for you ! Stay tuned ! www.thetaxpoint.com #Taxationlaw #taxknowledge #thetaxpoint #taxinformation

"Did you know" 🔔 Weekly 'Fun' & 'Fact' posts and valuable information are available for you ! Stay tuned ! www.thetaxpoint.com #Taxationlaw #taxknowledge #thetaxpoint #taxinformation

Have you read our latest post on the latest Transfer Pricing Case Law from Italy? It is a landmark case in Transfer Pricing as it comes to how to approach loss making comparables in a benchmarking analysis 📑 Check our Poll and let us know what is your approach to Loss Making coparables in a benchmarking analysis 👇 Stay tuned for our technical insights on this topic by the end of the Poll!