Navigating International Business in the UAE

1)  Introduction

 
The UAE's favourable business environment, which includes low tax rates and simplified regulatory compliances, has attracted multinational corporations (MNCs) to establish operations, making it an attractive destination for businesses looking to expand their global footprint.

2)   Corporate Tax (“CT”)

Applicable

• Place of Effective Management (PoEM)
• Permanent Establishment (PE)
• Derives state source income
• Nexus in the UAE

Compliance

• Registration for CT
• Annual CT return filling
• Annual CT payment
• Maintaining proper documentation

Rate

3)   Transfer Pricing

Applicable

• Transactions with related parties and connected persons.

Compliance

• Master File
• Local File
• RP Disclosure Form

To be submitted if requested by FTA within 30 days.

4)   Economic Substance Regulation (ESR)

Applicable

• Licensee in the UAE (Freezone or Mainland) carrying out a relevant activity.
• Does not qualify as an exempt licensee.
• Derives income from a relevant activity.

Compliance

• ESR Notification
  within 6 months from FY end

• ESR Report
  within 12 months from FY end
  

5)   Country by Country Reporting (CbCR)

Applicable

Tax resident in the UAE
+
Part of a Multinational group of entities
+
Consolidated revenue ≥ AED 3.15 billion

Compliance

• CbC Notification
  On or before last day of the group’s reporting fiscal year 

• CbC Report
  within 12 months from group’s reporting fiscal year end

6)   How can Crowe help?

• Assisting companies in developing tax strategies which are aligned with the UAE tax regulations and ensuring compliance with local regulatory provisions.
• Advising on business restructuring to optimize the tax costs and documentation to support the tax positions.
• Ongoing review and providing recommendations to ensure tax compliance.