UAE as a Global Distribution Hub – Tax and Transfer Pricing Considerations

As a Global Distribution Hub with an advanced business culture and low-tax environment alongside a strategic location in the Middle East and North Africa (MENA) region, the United Arab Emirates (UAE) is an inevitable investment and business destination that presents immense benefits to carry out and set up a new business.

Recently, the UAE Ministry of Finance introduced some new changes to its tax and legal framework. To understand its impact on the business environment from a tax and transfer pricing angle, Lokesh Gupta, Associate Director, Tax and Transfer Pricing provided a lucid overview of its implications while sharing key insights.

During the webinar, Lokesh covered the taxation regime and stated the different percentages of tax rates including ‘Free Zone persons’ and ‘other than Free Zones persons’ while speaking about the withholding tax rates and their applicability.

Lokesh also gave an overview of how distributors in the UAE are taxed and specified the benefits to which a distributor from a Mainland or Non-designated Zone is entitled.

Furthermore, he also mentioned the key conditions for being part of a tax group and the benefits of registering for a business as a tax group. Lokesh, also discussed the different types of distributors and provided a thorough risk analysis of distributors while talking about their functions and assets.