Ministry of Finance publishes Mutual Agreement Procedure guidance for taxpayers

Al Etihad

6 days ago

24 June 2025 17:36
ABU DHABI (ALETIHAD)The Ministry of Finance has issued Mutual Agreement Procedure (MAP) guidance to provide clarity and guidance to taxpayers on the eligibility of MAP, the MAP process and the information required for a MAP claim.The Mutual Agreement Procedure provides taxpayers with the possibility to seek relief from (economic) double taxation under the applicable double tax treaty.The MAP Guidance provides clarity to taxpayers on the scenarios where double taxation may occur, such as a tax assessment resulting in a cross-border transfer pricing adjustment or the determination of the existence of a cross-border permanent establishment.The MAP guidance further clarifies the timelines in which taxpayers must make a MAP claim - typically within 3 years from when a taxpayer is aware that double taxation may occur - and confirms that rulings on tax matters issued by a UAE domestic judicial court or the Tax Dispute Resolution Committee may impact the scope of relief that the UAE Competent Authority can provide if such cases are submitted to MAP.Importantly, the MAP guidance outlines a detailed list of information that is required from taxpayers wishing to submit an eligible MAP claim. The UAE Competent Authority will seek to resolve all MAP cases as soon as possible and within the best practice timelines prescribed by the Organisation of Economic Cooperation and Development (OECD), subject to the timely submission of relevant information from taxpayers and the availability of the Competent Authority of the counterparty jurisdiction.Given the large tax treaty network that the UAE possesses, the MAP guidance is critical information for taxpayers to consider when seeking relief from double taxation to verify the eligibility of their MAP claim, before submission, and determine which jurisdiction should receive its MAP claim.The publishing of the MAP guidance will provide taxpayers direction on how to access the MAP process, and thus benefit from the UAE's tax treaty network and ultimately seek to relieve instances of double taxation.
The publication of the MAP guidance reaffirms the Ministry of Finance's commitment in ensuring certainty and transparency for UAE taxpayers.
Source: Aletihad - Abu Dhabi