With the introduction of UAE Corporate Tax, multinational groups operating through UAE Free Zone entities faced a new level of scrutiny—particularly around controlled transactions, arm’s length pricing, and governance substance.
While the group had established global accounting, audit, and tax practices, the UAE entity required localised interpretation, execution, and defensibility under UAE Corporate Tax Law, aligned with OECD principles.
The challenge was not compliance in isolation but ensuring that the UAE entity could withstand tax authority review while remaining fully aligned with group policies—without fragmenting responsibility across advisors.
A detailed review of controlled transactions was undertaken, including:
This ensured that the UAE entity’s inter-company dealings were defensible, documented, and regulator-ready.
Despite being part of a multinational group, all UAE local compliance matters were entrusted to a boutique advisory firm—a deliberate and confidence-driven decision.
This extended beyond Corporate Tax to include:
The engagement evolved from advisory support to trusted local stewardship.
A comprehensive internal governance and compliance document (AOA-aligned internal procedures) was developed, covering:
This documentation was reviewed, accepted, and appreciated at group level, reinforcing confidence in the UAE control environment.
A structured compliance register and checklist-based system was implemented to:
Compliance shifted from who handles it to how it is controlled.
Qualitative Outcomes
Strategic Outcomes
Strategic Takeaway
For multinational groups, UAE Corporate Tax compliance is not about filing returns, it is about defensibility, governance, and trust.
This engagement demonstrates that when arm’s length principles, benchmarking, and internal controls are handled with precision, local compliance becomes a strength rather than a risk point, even within complex group structures.
If your UAE entity:
Then Corporate Tax risk is often latent, not visible. The answer lies in process, documentation, and local ownership, not scale of advisor.
With over 25 years in Dubai and nearly 30 years as a Chartered and Management Accountant, Hemant has extensive experience across manufacturing, services and technology sectors. He has worked with major corporate groups including Al Tayer, Saif Al Ghurair, Dhabi, and Aditya Birla. Hemant specializes in profitability and cost management, debt restructuring, contract management, and regulatory compliance, having generated approximately USD 47.5 million in savings and profit growth. A confident public speaker and Distinguished Communicator, he lives by the quote: “You get what you reward for. If you want ants to come, you put sugar on the floor” (Charlie Munger), embodying his belief that “Profit has its own intelligence.”
Archana Mundhra is a qualified Chartered Accountant with over 15 years of experience in multinational corporations. Her proficiency lies in financial planning and business intelligence. Her deep financial understanding and profound analytical skills empower her to assist management in realizing their objectives effectively.
Rinkle Jain is a qualified Chartered Accountant and Fellow Member of the Institute of Chartered Accountant of India. A results-driven Chartered Accountant with a distinguished career marked by proficiency in management, financial planning, and catalyzing overall company development.Demonstrates a unique blend of financial acumen, strategic insight, and leadership prowess, contributing significantly to organizational success.