A software group's first UAE corporate tax return

The parent company in London had opened a Dubai subsidiary to serve Gulf customers. Staff, contracts and invoices moved between the two companies, but nobody had agreed how the services between them should be priced or documented.

The subsidiary's first corporate tax return was due nine months after its first financial year end. VAT registration had been missed in the first quarter, and the UK team was unsure what the UAE rules meant for the group.

• Registered the subsidiary for VAT and corporate tax, and settled the late VAT registration with the authority.
• Mapped every flow of staff time, software licences and cash between the two companies.
• Set a cost plus price for the services between them and documented it for both tax authorities.
• Put the UAE and UK deadlines for both companies on one calendar.
• Prepared the return from closed books and walked the UK board through it before filing.

The first UAE corporate tax return was filed three weeks before its deadline, with the related party disclosures in place. The UK transfer pricing file now matches the UAE position, so both companies tell the same story.

The group now sees every VAT and corporate tax date for both countries in one place, and has not missed a deadline since.