The Ministry of Finance has issued\nthe Ministerial Decision No (97) of 2023 on the Requirements for Maintaining\nTransfer Pricing Documentation which aims to promote transparency and fairness\nin the UAE’s tax system.<\/p>\n\n\n\n
Federal\nDecree Law No (47) of 2023 on the Taxation of Corporations and Businesses enforces transfer pricing rules and\ndocumentation requirements to ensure that the pricing of transactions between\nrelated parties and connected persons, such as companies that are part of the\nsame multinational enterprise (MNE) group, are not influenced by their\nrelationships. <\/p>\n\n\n\n
His Excellency Younis Haji Al Khouri,\nUndersecretary of the Ministry of Finance, said: \u201cThe transfer pricing\ndocumentation requirements aim to ensure taxpayers can prove the arm’s length\nbasis for pricing their transactions with related parties and connected persons\nusing standardized files. Additionally, to reduce the compliance burden on\ntaxpayers, the Decision defines the threshold for preparing master files and\nlocal files and the exclusions for disclosing certain transactions.” <\/p>\n\n\n\n
His Excellency added that the\ntransfer pricing documentation requirements will promote transparency and\nfairness in the UAE’s tax system by providing clear guidance and easing\ncompliance burdens for small and medium-sized businesses to their benefit. The\ndecision reinforces the UAE’s commitment to fostering a business-friendly\nenvironment that encourages growth, supports economic diversification, and\nenhances the nation’s competitiveness on the global stage.<\/p>\n\n\n\n
The Decision specifies instances\nwhere taxpayers must maintain transfer pricing documentation, specifically a\nmaster file and a local file, including if they have revenues in a relevant tax period of at least\nAED200 million, or they are part of a MNE group with a total consolidated group\nrevenue of at least AED 3.15 billion in the\nrelevant tax period. Additionally, the Decision outlines the\ntransactions or arrangements that will be included in the local file. <\/p>\n\n\n\n
Cabinet and Ministerial Decisions relating to the Corporate Tax Law are available on the Ministry of Finance’s website: www.mof.gov.ae <\/p>\n","protected":false},"excerpt":{"rendered":"
The Ministry of Finance has issued the Ministerial Decision No (97) of 2023 on the Requirements for Maintaining Transfer Pricing Documentation which aims to promote transparency and fairness in the UAE’s tax system. Federal Decree Law No (47) of 2023 on the Taxation of Corporations and Businesses enforces transfer pricing rules and documentation requirements to …<\/p>\n","protected":false},"author":5,"featured_media":49834,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,4],"tags":[],"class_list":["post-53582","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-economy","category-news"],"_links":{"self":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts\/53582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/comments?post=53582"}],"version-history":[{"count":1,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts\/53582\/revisions"}],"predecessor-version":[{"id":53583,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/posts\/53582\/revisions\/53583"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/media\/49834"}],"wp:attachment":[{"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/media?parent=53582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/categories?post=53582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.uaebarq.ae\/en\/wp-json\/wp\/v2\/tags?post=53582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}