Related Party Transactions & Connected Persons in UAE Corporate Tax
Under the UAE Corporate Tax Law, businesses must carefully manage and disclose related party transactions and dealings with connected persons. These rules ensure that transactions are conducted on an arm’s-length basis and that taxable income is reported fairly. At Accruon Auditing LLC, we provide expert guidance to help businesses comply with these complex requirements while minimizing risks of penalties or disputes.
Who Are Related Parties?
- Parent companies, subsidiaries, and sister concerns.
- Shareholders with significant ownership or voting rights.
- Directors, partners, and officers influencing decision-making.
- Individuals or entities under common control.
Who Are Connected Persons?
- Owners or shareholders.
- Directors or partners in the business.
- Related parties of such individuals (family connections).
Our Advisory Services
- Identification & Mapping – assess and document all related parties and connected persons.
- Arm’s-Length Pricing Review – ensure transactions (sales, loans, services, IP use, etc.) follow transfer pricing rules.
- Disclosure & Documentation – prepare reports for FTA filings, including connected persons’ benefits (salaries, allowances, dividends, etc.).
- Compliance with OECD Standards – align documentation with international best practices.
- FTA Audit Support – assist in defending related party pricing and connected persons’ transactions.