The introduction of UAE corporate tax has significant implications for multinational enterprises (MNEs) operating through subsidiaries or holding companies in the region. While the tax rate remains globally competitive, new compliance standards and transfer pricing obligations must be addressed.
Holding companies that manage investments or shares may enjoy certain tax exemptions on dividends or capital gains, especially when operating from a qualifying free zone. However, to maintain these exemptions, the business must meet economic substance requirements and demonstrate real operational presence.
Meanwhile, subsidiaries of global firms are now expected to adhere to transfer pricing rules, ensuring that all intercompany transactions are conducted at arm’s length. This affects royalty payments, shared service costs, and more.
Strategists Consultant offers specialized support to help multinational firms:
- Navigate transfer pricing regulations
- Document intercompany transactions effectively
- Structure operations for maximum tax efficiency
- Stay compliant with FTA filing requirements
With global tax scrutiny on the rise, having a UAE presence isn’t enough—it must be well-structured, transparent, and compliant. Trust our team to guide your international tax strategy from the UAE