The UAE Federal Tax Authority (FTA) updated Decision No. 4 of 2024 on 12 June 2024, clarifying the future implementation of an advance pricing agreements (APAs) framework in the UAE.
Based on the Corporate Tax Law, a person may make an application to the Authority in relation to the conclusion of an advance pricing agreement with respect to a transaction or an arrangement proposed or entered into by the person. The start date for receiving applications for advance pricing agreements and procedures related to the submission of applications and the issuance of agreements will be announced in the fourth quarter of 2024.
This policy outlines the general framework for procedures of clarifications and directives, while the processes and details shall be specified by the Authority.
The updated Decision No. 4 does not address the APA process or technical requirements. It focuses on the minimum information needed for a person to request clarification from the FTA regarding the APA Framework.
