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UAE Corporate Tax Fundamentals/Revenue Recognition for CT
8 min

Revenue Adjustments for CT

Adjustments to accounting revenue for tax purposes.

Revenue Adjustments

Common Adjustments

  1. Exempt income — remove from taxable revenue
  2. Non-arm's length revenue — adjust to arm's length (transfer pricing)
  3. Deemed income — include income deemed to arise
  4. Tax-exempt dividends — exclude qualifying dividends

Transfer Pricing Adjustments

If related-party transactions are not at arm's length, revenue must be adjusted to reflect the arm's length price. This is a key compliance area.

Documentation

All revenue adjustments must be supported by documentation, including transfer pricing studies and arm's length benchmarking.

Key takeaways

  • Exempt income must be removed from taxable revenue
  • Transfer pricing adjustments may be required
  • All adjustments need documentation

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This lesson is general educational content, not individualized tax or legal advice. Always consult a qualified professional for your specific situation.