Mutual Agreement Procedure Guidance Published

7 July 2025 – On 25 June 2026, the United Arab Emirates (UAE) Ministry of Finance published guidance on the Mutual Agreement Procedure (‘MAP’), a process by which the UAE and other contracting states in Double Tax Agreements (‘DTA’) seek to resolve international tax disputes – including transfer pricing adjustments - that result or will result in taxation not in accordance with the DTA. 

From a practical perspective, MAPs are primarily deployed where a tax assessment in the UAE or a DTA jurisdiction adjusts intercompany pricing and gives rise to a higher profit and tax liability. This then indicates the need for a corresponding adjustment in the counterpart jurisdiction, potentially reducing the profits and tax liability for the assessed period. The MAP is a mechanism whereby the taxpayer and the Competent Authorities of the UAE and the counterpart DTA jurisdiction undergo a process which aims to result in a position where double taxation can be avoided.

A MAP may also be sought where there is an issue of interpretation or application of the relevant DTA and where double taxation arises for cases not provided for in the relevant DTA. 

What you need to know

The MAP guidance document sets out the practical framework for the process in the UAE for making a MAP claim. The guidance sets out the UAE Competent Authority (‘UAE CA’) responsible for the MAP process, the criteria for eligibility under the MAP process and some scenarios in which a claim may arise, the information required to file the MAP claim, assessment of the MAP claim by the UAE CA and the potential outcomes of such an assessment.

Key takeaways

The UAE MAP Guidance provides additional clarity on the process available to taxpayers for international tax disputes arising from DTAs. Taxpayers will need to:

1. Assess whether they are subject to double taxation and refer to the relevant DTA with particular regard to the time limits within which to file a MAP claim;
2. Consider the interaction of domestic remedies that may be available under the MAP process;
3. Conduct a thorough fact-finding exercise and retain any relevant records to strengthen their MAP claim as well as the ability of the UAE CA to assist in seeking a resolution: and
4. Respond to the UAE CA within one month and remain transparent in all communications.
5. Establish internal protocols to track MAP eligibility timelines (i.e. 3-year rule);
6. Proactively review intercompany arrangements likely to be challenged and ensure TP documentation is up-to-date and defensible for prior and current tax years.
7. Consider parallel filing to both Competent Authorities in TP disputes to expedite resolution.
8. UAE taxpayers should include MAP considerations as part of their broader tax risk governance framework, particularly in high-risk areas such as intercompany financing, intellectual property, and centralized services.
9. Taxpayers should assess the bilateral MAP provisions in each DTA for procedural nuances, especially where arbitration is permitted as a secondary relief. 

For more details on each aspect, please see the attached PDF.

Notice

The above is only a brief summary of the current update, is valid at the time of circulation and is based only on information currently available in the public domain which is subject to change. This alert has been written in general terms and does not constitute any form of advice or recommendation by Deloitte and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we highly recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

Deloitte and Touche Middle East would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances.