AED: The United Arab Emirates Dirham.
Authority: Federal Tax Authority.
Advance Pricing Agreement (“APA”): An APA is an agreement by the Authority with a Person, which sets the criteria to determine the Arm’s Length Price in relation to Controlled Transactions entered or to be entered by that Person with its Related Party/Parties, over a fixed period of time.
Annual Declaration: A declaration submitted to the Authority by the Person for each Tax Period covered under an APA to demonstrate the Person’s compliance with the terms and conditions of the APA.
Arm’s Length Principle: The international standard that the Organisation for Economic Co-operation and Development member countries and many other jurisdictions have agreed to use for determining transfer prices for tax purposes. The principle is set forth in Article 9 of the Organisation for Economic Co-operation and Development (“OECD”) Model Tax Convention as follows: Where conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then a...