By Bill Anderson, FCCA, Chief Executive Officer, Assetica — 2026-06-21
The UAE's 9% corporate tax has made independent valuations a compliance requirement, not an option. When you need one for restructuring, related-party transfers and group relief, and what makes a valuation defensible to the FTA.
The FTA expects a market valuation in restructurings and reorganisations (moving a business or assets into a new group structure), related-party and connected-person transactions (transfer pricing requires arm's length pricing), transfers of shares or a business within a group, and claims for qualifying group relief or business restructuring relief.
Arm's length is the price two unrelated parties, each acting in their own interest, would agree. For related-party transfers you cannot move shares at book value or a round number to suit the tax outcome. The valuation must reflect what the business would genuinely fetch in the market, established with recognised methodology.
A corporate-tax valuation that withstands review states the valuation date and standard of value, applies recognised methodology (usually triangulating DCF and market multiples cross-checked against assets), normalises earnings for one-off and owner-related items, and is independent of the party benefiting from the outcome. It should be dated to the transaction and kept on file with its assumptions and supporting financials.
Do I need a business valuation for UAE corporate tax?
You need one whenever a transaction must be priced at market value for tax purposes, most commonly restructurings, related-party transfers of shares or a business, and qualifying group reorganisations. The FTA expects arm's length values that can be supported if reviewed.
Can I transfer shares between my own companies at book value?
Generally no. Transfer pricing rules require related-party dealings to be at arm's length (market value), not book value or a figure chosen for the tax result. An independent valuation evidences the market value.
What does the FTA look for in a valuation?
A clear valuation date and standard of value, recognised methodology, normalised earnings, and independence from the party benefiting from the outcome, all properly documented so the figure can be defended on review.