UAE Transfer Pricing & Benchmarking Services
- Legal Basis: Federal Decree-Law No. (47) of 2022, effective June 1, 2023, or later
- Purpose: Enhance UAE’s global business hub status, diversify revenue, meet international tax transparency standards.
- Scope: Applies to all businesses and individuals with commercial licenses in UAE, including Free Zone businesses (with incentives), foreign entities with ongoing trade, banking, and real estate activities
Taxation Basis: Residence and source .
- Resident Person: Taxed on domestic and foreign income .
- Non-Resident Person: Taxed only on UAE-sourced income .
- Taxable Income Calculation: Starts from accounting net profit, adjusted per CT Law .
- Deductible Expenses: Generally, all legitimate business expenses incurred for deriving taxable income are deductible .
- Administering Authority: Federal Tax Authority (FTA) .
- Rates: 0% for taxable income up to AED 375,000; 9% for taxable income above AED 375,000.
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MicroBiz CT Assist Package: Small Business Relief (SBR)
Concept: Eligible businesses treated as having zero taxable income (0% CT).
Eligibility Criteria:
- Resident Person (natural or juridical).
- Total gross business revenue AED 3 million or less in current and prior tax periods (since June 1, 2023).
- Not a Qualifying Free Zone Person (QFZP) or MNE Group member (global revenue > AED 3.15 billion).
- No artificial business splitting.
Key Benefit:
- 0% Corporate Tax liability
- Simplified compliance
