There are seven ways to identify a related party under the regime of corporate tax in the UAE. The below points will equip you to accurately identify a related party for the purpose of corporate tax compliance in the UAE:
1. Two or more individuals related to the fourth degree of kinship or affiliation, including by birth, marriage, adoption or guardianship
2. An individual and a legal entity where alone, or together with a related party, the individual directly or indirectly owns a 50% or greater share in, or controls, the legal entity
3. Two or more legal entities where one legal entity alone, or together with a related party, directly or indirectly owns a 50% or greater share in, or controls, the other legal entity
4. Two or more legal entities if a taxpayer alone, or with a related party, directly or indirectly owns a 50% share of each or controls them
5. A taxpayer and its branch or permanent establishment
6. Partners in the same unincorporated partnership
7. Exempt and non-exempt business activities of the same person
