UAE Launches Advance Pricing Agreements to Give Businesses Tax Certainty

UAE, 21 August, 2026: The UAE Federal Tax Authority (FTA) has introduced a new Advance Pricing Agreement (APA) framework, allowing eligible businesses to agree in advance on how related-party transactions will be priced for tax purposes.

The initiative aims to provide greater certainty around transfer pricing, one of the key areas of focus under the UAE Corporate Tax regime. An APA can help businesses reduce the risk of future tax disputes, audits, and penalties by obtaining the FTA’s agreement on the pricing methodology in advance.

Initially, the framework covers domestic related-party transactions, with cross-border applications expected to follow in 2026. The APA Guide indicates that the total or expected arm’s-length value of covered controlled transactions must generally be at least AED 100 million per tax period.

The application process includes a mandatory pre-filing consultation, formal application, evaluation and negotiation, and a final binding agreement. The official application fee is AED 30,000, although businesses should also consider advisory, management, and ongoing compliance costs.

The move is expected to strengthen the UAE’s position as a business-friendly jurisdiction by offering companies greater certainty and predictability in managing their transfer pricing obligations.