By Bill Anderson, Senior Valuation Advisor & RICS Associate — Assetica, Dubai, UAE
Definition: Tax valuation in the UAE is the preparation of an independently certified assessment of a business, asset, or interest specifically for tax compliance purposes. Since the introduction of UAE corporate tax at 9% in June 2023, formal tax valuations are required for transfer pricing between related parties, business reorganisations, employee share option schemes, and recognition of goodwill and intangible assets.
We assess tax impacts and develop optimised strategies to enhance your company's financial health. Our tax valuations are fully compliant with UAE, UK, and international tax regulations.
What is a tax valuation and why is it needed in the UAE?
A tax valuation is an independently prepared assessment of the value of a business, asset, or interest for a specific tax purpose. In the UAE, following the introduction of corporate tax in 2023, tax valuations are increasingly required for transfer pricing compliance, business reorganisations, employee share schemes, and transactions between related parties.
Does Assetica prepare transfer pricing valuations for UAE businesses?
Yes. Assetica prepares transfer pricing valuations and documentation that comply with the OECD Transfer Pricing Guidelines and UAE FTA requirements, protecting businesses from transfer pricing adjustments and penalties.
How does UAE corporate tax affect business valuation requirements?
The introduction of UAE corporate tax at 9% from June 2023 has created new valuation obligations for businesses, particularly around related-party transactions, group restructurings, and the recognition of goodwill and intangible assets.