Intra-group Financing – Special UAE Tax and Transfer Pricing considerations

The UAE taxation system has changed significantly with the introduction of the UAE Corporate Tax law and Transfer Pricing regulations. Moreover, as a financial and investment hub, adhering to its new tax regime and regulations while staying compliant with the Arm’s Length Principle (ALP) has become critical for multinational enterprises and taxpayers.

To elaborate more on this topic, Nexdigm hosted a webinar where Lokesh Gupta, Associate Director, Tax and Transfer Pricing, provided vital insights and listed important considerations against the intra-group financing activities while giving a detailed overview of the topic.

During the webinar, Lokesh spoke about the types of intra-group financing activities and the crucial general interest limitation rules.

He further drew attention to delineation in intra-group financing and stated the critical considerations for delineation.

Lokesh also spoke at length about the transfer pricing analysis of intra-group guarantees and the different types of guarantees.

He concluded the session by speaking about the process of how to delineate a corporate guarantee while giving a brief transfer pricing analysis of cash pools and their types.