FAQ – Article 35 Related parties and control

Source: https://mof.gov.ae/corporate-tax-faq/

  1. Who are Related Parties?

Generally, Related Parties of an individual refer to the individual’s relatives as well as companies in which the individual, alone or together with their Related Parties, has a controlling ownership interest (typically 50% or more of shares of the company).

Similarly, Related Parties of a company refers to any other companies in which the company, alone or together with their Related Parties, has a controlling ownership interest (typically 50% or more of shares of the company), or that are under greater than 50% common ownership.

Further detail on the definition of Related Parties can be found in Article 35 of the Corporate Tax Law.

  1. Who are Connected Persons?

Connected Persons are different from Related Parties. A person will be considered “connected” to a business that is within the scope of UAE CT if they are:

  1. The owner of the business;
    2. A director or officer of the business; or
    3. A Related Party of either of the above.

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