UAE Corporate Tax: Advance Pricing Agreements

The Federal Tax Authority (FTA) has issued guidance on Advance Pricing Agreements (APAs), offering taxpayers upfront certainty on transfer pricing arrangements and reducing dispute risks.

Types of APAs

• Unilateral APA (UAPA): Agreement between taxpayer and FTA
• Bilateral / Multilateral APA: Agreements between multiple tax authorities

Scope and Eligibility

APAs are generally available for controlled transactions exceeding AED 100 million per tax period, though smaller transactions may qualify where complexity exists.

APA Process

• Pre-filing consultation
• APA application filing
• Evaluation and negotiation
• Conclusion and implementation

APA Period & Fees

• APA term: 3 to 5 tax periods
• New application fee: AED 30,000
• Renewal fee: AED 15,000

FAAB Partners can assist you throughout the APA process to ensure certainty and compliance.

Regards,
FAAB PARTNERS