The Finance Ministry (MoF) issued new guidance (pdf) on the Mutual Agreement Procedure (MAP), laying out how taxpayers can seek relief from double taxation under the UAE’s network of more than 100 double tax treaties, Wam reports.

Uh, Enterprise, what’s MAP? The MAP process allows taxpayers facing taxation that breaches a tax treaty — think dual residency conflicts, transfer pricing adjustments, or permanent establishment issues — to request relief through negotiations between the UAE and the foreign tax authority involved.

What’s required: The guidance outlines a comprehensive list of supporting documents taxpayers must submit, including tax assessments, treaty article interpretations, transfer pricing documentation, and proof of tax residency. Claims must typically be filed within three years of when the taxpayer becomes aware that double taxation may arise.

Who’s covered: MAP access is allowed even in multilateral disputes and in cases involving self-initiated adjustments, provided they’re made in good faith and backed by economic analysis. But if a final ruling is issued by a UAE court or the Tax Dispute Resolution Committee, the UAE Competent Authority is bound by it. In such cases, only the foreign tax authority may be able to grant relief.

I’ve submitted a claim, now what? The UAE Competent Authority, separate from the Federal Tax Authority, aims to resolve cases within 24 months, in line with OECD best practices. Taxpayers are expected to respond to any additional information requests within one month, or risk their claim being dropped. Where available, arbitration may be triggered if no agreement is reached.

Tags: