United Arab Emirates: Corporate Tax

The UAE Federal TaxAuthority (FTA) has recently issued Public Clarification CTP011¹, setting out its position on downward transfer pricing (TP) adjustments made by a Taxable Person in the Corporate Tax Return, along with the disclosure and documentation expected to support such adjustments.

The UAE has developed a sophisticated tax system that mirrors established financial centers while maintaining competitive advantages. This analysis examines how the Emirates' approach to corporate taxation, VAT, and business structures compares with traditional onshore jurisdictions, revealing both strategic alignments and key differentiators that position the UAE uniquely in the global tax landscape.

BLK Partners is a multi-jurisdictional law firm operating across Saudi Arabia, UAE, Lebanon, and Egypt, providing comprehensive legal services under registered trademarks in each region.

The UAE Corporate Tax regime's Transfer Pricing framework extends far beyond traditional cross-border transactions, reaching into domestic relationships, family-owned structures, and Free Zone operations.

The introduction of Corporate Tax (“CT”) in the United Arab Emirates (“UAE”) has brought about a fundamental shift in the way businesses approach accounting and financial reporting.

The UAE tax authorities have recently issued two key legislative instruments completing the regulatory framework governing the Research and Development (R&D) Tax Credit under the UAE Corporate Tax regime.

Cabinet Decision No. 174 of 2025 introduces targeted but significant updates to the schedule of fees charged by the Federal Tax Authority (FTA) under Cabinet Decision No. 65 of 2020.

Over the past three years, the UK has reshaped its tax landscape. While headline rates may look familiar, the changes introduced through the Finance Acts of 2023–2025 have quietly...

Section 28 of the UAE Corporate Tax law prescribes that to be deductible in the UAE, "Expenditure incurred wholly and exclusively for the purpose of the Taxable Person's Business...