Understanding UAE Corporate Tax 2026
In-depth look at UAE corporate tax in 2026, including the new 9% rate, thresholds, and key filing requirements for businesses.
The exact change
Transfer pricing documentation, including the local file, becomes mandatory once related-party transactions exceed AED 40 million, whether from the Local File revenue test or the related-party transaction volume.
Transfer pricing local file: Entities with revenue > AED 200 million, or that are a Constituent Entity of an MNE Group. Related Party Transactions disclosure form: Entities with related-party transactions > AED 40 million in aggregate (AED 4 million per category).
Suggested change
Fixed a mischaracterized transfer-pricing Local File threshold that had wrongly combined two separate compliance mechanisms (the Local File trigger is revenue over AED 200 million or MNE constituent status; the AED 40 million related-party-transactions threshold triggers a separate disclosure form, not the Local File itself). Also softened the Small Business Relief end-date framing, since no extension had been announced.
Why this is better
The Local File revenue threshold (AED 200 million or MNE constituent status) and the separate AED 40 million related-party-transactions disclosure threshold are two different compliance mechanisms that the article had wrongly combined into one test.
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