Latest news with #TaxDisputeResolutionCommittee
Gulf Insider
5 days ago
- Business
- Gulf Insider
UAE Issues Tax Guidance to Help Businesses
The UAE Ministry of Finance has released Mutual Agreement Procedure (MAP) guidance to help taxpayers avoid double taxation through its global tax treaty network. The UAE Ministry of Finance has issued official Mutual Agreement Procedure (MAP) guidance to clarify how businesses and individuals can seek relief from double taxation under the country's extensive network of international tax treaties. The new guidance outlines eligibility criteria, procedural timelines, and information requirements for MAP claims. It is intended to help taxpayers navigate situations where double taxation may arise — such as cross-border transfer pricing adjustments or disputes around the existence of permanent establishments in more than one jurisdiction. The Mutual Agreement Procedure is a mechanism included in many double tax treaties that allows taxpayers to resolve disputes between two countries regarding taxation rights. In practice, it provides a way to eliminate economic double taxation — where the same income is taxed in two jurisdictions. The guidance confirms that a MAP claim should generally be submitted within three years from the date the taxpayer becomes aware that double taxation may occur. It also explains that prior decisions made by UAE domestic courts or the Tax Dispute Resolution Committee may limit the scope of relief available under MAP. Timelines: Claims must be filed within three years of awareness of potential double taxation. Claims must be filed within three years of awareness of potential double taxation. Information Required: A detailed list of supporting documents is necessary for an eligible submission. A detailed list of supporting documents is necessary for an eligible submission. Interaction with UAE Courts: Court rulings may affect relief scope in MAP cases. Court rulings may affect relief scope in MAP cases. OECD standards: The UAE will aim to resolve MAP cases within OECD-recommended timeframes, provided information is submitted promptly. The Ministry emphasised that taxpayers should verify the eligibility of their case and determine which jurisdiction is appropriate for submitting their MAP request before proceeding. The release of the MAP guidance aligns with the UAE's commitment to promoting tax transparency, minimising cross-border tax disputes, and offering certainty to businesses operating internationally. Given the UAE's growing role as a global business hub and its extensive double tax treaty network, the MAP guidance is expected to be a key resource for multinationals and cross-border investors. Also read: Abu Dhabi Mandates Valet Parking Licences Amid ITC Crackdown
Hi Dubai
5 days ago
- Business
- Hi Dubai
Ministry of Finance Issues Guidance to Streamline Double Tax Relief Process
The UAE Ministry of Finance has released official guidance on the Mutual Agreement Procedure (MAP), offering much-needed clarity for taxpayers seeking relief from double taxation under international tax treaties. The new guidance outlines eligibility requirements, timelines, and documentation standards for initiating a MAP claim. It aims to support businesses involved in cross-border operations that may face economic double taxation—such as those dealing with transfer pricing adjustments or disputes over permanent establishment status. Taxpayers typically have three years from the moment they become aware of potential double taxation to file a MAP claim. However, the guidance also notes that prior rulings from UAE courts or the Tax Dispute Resolution Committee may influence the scope of relief the UAE Competent Authority can provide. In addition to defining the procedural framework, the Ministry emphasized that all cases will be handled in line with OECD best practices, provided that taxpayers submit complete and timely information and that the relevant foreign authorities are responsive. With its extensive tax treaty network, the UAE's MAP guidance is expected to play a key role in helping taxpayers navigate international tax disputes and reduce the risk of double taxation. The release reaffirms the Ministry's broader commitment to transparency, tax certainty, and aligning with global tax standards. News Source: Emirates News Agency
Mid East Info
5 days ago
- Business
- Mid East Info
The Ministry of Finance publishes Mutual Agreement Procedure guidance for taxpayers - Middle East Business News and Information
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 and that the UAE Competent Authority will seek to resolve all MAP cases as soon as possible and within the best practice timelines prescribed by the Organization 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.
