What is the guide for Advance Pricing Agreements, and why is it significant? 

At the end of 2025, the Federal Tax Authority (“FTA”) released a first guide for the procedural aspects of United Arab Emirates (“UAE”) Advance Pricing Agreements (“APAs”). The mechanism for APAs had already been introduced in principle under Article 59 of the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (“Corporate Tax Law”), which was issued back in October 2022. However, it was not until the release of the APA guide that the mechanism was formalized.

APAs can be made with respect to Controlled Transactions, being between both related parties and connected persons, that are proposed or entered into by any natural person or juridical person (“Person”).

The APA programme offers a voluntary mechanism for a Person to enter into an agreement for determining the arm’s length price of Controlled Transactions over a period of time and preventing the risk of Transfer Pricing (“TP”) disputes and litigation. Such period of time would be at least three tax periods and no more than five.

Phased introduction of APAs

A Unilateral APA (“UAPA”) is an agreement between a Person and the FTA for domestic and cross border Controlled Transactions. UAPAs for cross border Controlled Transactions will be exchanged with foreign tax administrations of the jurisdiction of the ultimate parent entity, the immediate parent entity, and the counterparty of Controlled Transactions.

UAPAs will firstly be available in respect of domestic Controlled Transactions, for which the FTA are already accepting applications. For cross border Controlled Transactions, the commencement date will be announced later this year.

UAPAs will only cover prospective periods. At an as yet unspecified point in future the APA programme will also be extended to the Bilateral APA (“BAPA”) between competent authorities of two jurisdictions and the Multilateral APA (“MAPA”) between competent authorities of more than two jurisdictions.

Eligibility for an APA

A Person who has proposed or entered into a domestic and/or cross border Controlled Transaction is eligible to enter into an APA, provided the total/expected value of all the Controlled Transactions proposed to be covered under the APA is at least AED 100 million per tax period. For a UAE Tax Group, the threshold of AED 100 million would apply at the level of the Tax Group. This could include cases involving complex business operations or Controlled Transactions, or where such

2028 would be the first possible tax period for a domestic UAPA. Pre-filing and submission would need to be completed this year, with at least six months required for pre-filing based on the FTA’s indicative timelines.

Businesses seeking to enter into a UAPA for domestic Controlled Transactions should therefore begin the process of stress-testing their transfer pricing pricing data and positions, and then gathering the particulars that would be requested and discussed with the FTA during pre-filing.

How Aurifer’s TP specialists can assist

Our transfer pricing team has multi-jurisdictional TP dispute resolution experience, and in the UAE has already been building relationships with the FTA through consultation and training.  We will be happy to discuss and workshop with you the pros and cons of entering into an APA such that you can make an informed decision on how best to proceed.  Should you subsequently wish to enter into an APA, we will support you throughout the end-to-end process.

Controlled Transactions have been historically subject to audit. Controlled Transactions that fall under safe harbour provisions, including low value-adding intra-group services, would not be taken into consideration for APAs.

Domestic Controlled Transactions may be covered under a UAPA if the Person and its domestic related party are subject to different tax rates or are eligible for any tax incentives under the Corporate Tax Law.

Materiality is not the sole criterion for acceptance or rejection of an application, and the FTA will evaluate each request based on its specific facts and circumstances, including the complexity of the Controlled Transactions, the potential for tax risk, and the overall benefit of entering into an APA.

APA fees

A non-refundable fee of AED 30,000 applies at the time of filing the APA application. This fee is inclusive of any revisions/ amendments to the APA application. In case of renewal of an APA, a Person is required to pay a non-refundable fee of AED 15,000.

Timeline and stages of an APA application

A Person must submit the UAPA application within two months from the date of approval of the notification of the pre-filing consultation (see below) by the FTA, or at least twelve months prior to the commencement of the first tax period to be covered under the UAPA, whichever is earlier. Prior to submission of the application itself, a Person wishing to enter into an APA will need to make a request to the FTA (via e-mail APA@tax.gov.ae or EmaraTax) for a pre-filing consultation, which will provide the opportunity for both parties to assess the possibility of an APA.

After the pre-filing meeting and upon notification to proceed, a Person may proceed to submit the application in the format specified by the FTA (English or Arabic language).  Only a Tax Agent registered for UAE Corporate Tax purposes with the FTA may submit the APA request on behalf of the Person in the prescribed form.

The FTA will then review the application, which may involve site visits and interviews, and if it decides to proceed will commence evaluation and analysis. The Person will have the opportunity to negotiate with the FTA to reach a mutually agreeable position.

Any Person who has entered into an APA with the FTA is required to file an APA Annual Declaration for each tax period covered under the APA.

Initial reflections

Our transfer pricing team has multi-jurisdictional TP dispute resolution experience, and in the UAE has already been building relationships with the FTA through consultation and training.  We will be happy to discuss and workshop with you the pros and cons of entering into an APA such that you can make an informed decision on how best to proceed.  Should you subsequently wish to enter into an APA, we will support you throughout the end-to-end process.