AVS Internatioanl TRADE FZC LlC

21/01/2026

Elite compliance, effortless growth. AVS delivers precision tax solutions for UAE businesses.

20/01/2026

TRANSFER PRICING ARM'S LENGTH PRINCIPLE

Transfer pricing in the UAE refers to the rules that govern how transactions between related parties and connected persons must be priced for corporate tax purposes. Under the UAE Corporate Tax Law, businesses are required to ensure that these internal transactions—such as the sale of goods, provision of services, financing, or use of intellectual property—are conducted as if the parties were independent, reflecting real market conditions KPMG +1.

This standard is known as the Arm’s Length Principle. It ensures that the price charged between related parties matches what unrelated parties would agree to in similar circumstances. The UAE follows the OECD Transfer Pricing Guidelines, and the Federal Tax Authority may adjust taxable income if transactions do not reflect arm’s length behavior transferp... +1.

In practice, businesses must:

• Apply accepted transfer pricing methods (CUP, Cost Plus, Resale Price, TNMM, Profit Split) transferpric...
• Maintain documentation such as disclosure forms, master file, and local file when thresholds apply mytaxman.ae
• Be prepared to justify pricing with comparable market data

These rules promote fairness, prevent profit shifting, and align the UAE with global tax standards.

19/01/2026

VAT TREATMENT ON CROSS BORDER SERVICEA IN UAE

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19/01/2026

Qualifying vs Non‑Qualifying Income Under UAE Corporate Tax

A simple guide every UAE business should understand

The UAE’s Corporate Tax regime applies a 9% tax on taxable income above AED 375,000.
However, Free Zone companies may still enjoy a 0% tax rate — but only on Qualifying Income.

Understanding the difference is essential for compliance, planning, and avoiding penalties.

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✅ What Is Qualifying Income?

Qualifying Income refers to revenue that can be taxed at 0% for a Qualifying Free Zone Person (QFZP).
Based on Cabinet Decision No. 100 of 2023 and expert summaries Reyson Ba... +2, this typically includes:

• Income from approved Qualifying Activities
• Exports of goods or services outside the UAE
• Certain passive income, such as:• Dividends
• Capital gains
• Royalties (from qualifying sources)

• Transactions with other Free Zone entities (subject to conditions)

To benefit, the business must meet all QFZP criteria, including maintaining adequate substance and complying with transfer pricing rules.

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❌ What Is Non‑Qualifying Income?

Non‑Qualifying Income is fully taxable at 9%, even for Free Zone companies.
This includes:

• Revenue earned from mainland UAE customers
• Activities not listed as qualifying
• Income from non‑compliant operations
• Any revenue that fails QFZP conditions

If a Free Zone business earns both types of income, it must separately track and report them.

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📊 Why This Matters

Correct classification affects:

• Your tax rate (0% vs 9%)
• Your compliance status
• Your risk of penalties
• Your financial planning and pricing strategy

A single misclassification can change your tax liability.

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🧭 Final Thought

Corporate Tax isn’t just about filing — it’s about understanding your income streams.
Knowing what qualifies and what doesn’t helps your business stay compliant, confident, and future‑ready

18/01/2026

Here’s a clean, premium caption + description you can use directly for Instagram:

✨ Caption

“VAT Treatment for Cross‑Border Services — Clear, Confident, Compliant.”

📌 Description

Understanding VAT on imports and exports of services can be complex, but the right clarity keeps your business compliant across borders. From zero‑rating rules to reverse charge decisions, every step matters. Stay informed. Stay compliant. Stay global.

14/01/2026

Don't let VAT penalties drain your profits.
Get your registration, filing and records handled by professionals.
DM us to stay compliant and confident

12/01/2026

12/01/2026

“UAE Corporate Tax 2026 is coming—are you ready? ✅ Don’t miss these key updates that could shape your business strategy. # ”

12/01/2026

Confidence begins with compliance.

11/01/2026

We assist businesses with:
✔ VAT registration
✔ VAT returns filing
✔ Bookkeeping & accounting
✔ Corporate tax compliance
✔ FTA support & advisory
Get in touch for smooth, accurate, and penalty‑free compliance.

Call us on :-00971-562672752