In June 2025, the Ministry of Finance of the United Arab Emirates (UAE) issued its first official guide to the Mutual Agreement Procedure (MAP), a framework designed to resolve double taxation disputes arising from the application of bilateral tax treaties. Published in PDF format on its website, the guide consolidates the internal rules and criteria relating to eligibility, terms, and obligations of both the taxpayer and the tax authorities during the process.
What is the MAP and what is its scope in the UAE?
The MAP is a treaty-based mechanism (generally in Article 25 of the OECD Model Convention) that allows taxpayers to request the intervention of the competent tax authorities when they consider that taxation has occurred that is not in accordance with bilateral treaties, without having to go directly to local courts.
In this context, the Ministry of Finance of the UAE acts as the competent authority (UAE CPM), while the Federal Tax Authority (FTA) is responsible for implementing adjustments once an agreement has been reached.
Grounds for application
Taxpayers may access the MAP when disputes arise such as:
- Transfer pricing adjustments without the corresponding deduction on the counterparty.
- Dual tax residence.
- Disputes over the attribution of profits to a permanent establishment.
- Issues relating to abuse rules or treaty interpretation.
The deadline for filing the claim begins from the first notification of the disputed tax act, generally with a limit of three years, although the taxpayer may file the claim proactively if it anticipates a divergence.
Procedure, representation, and required documentation
The taxpayer files the application directly with the UAE CA, in English or Arabic, including:
- Summary of the facts and dispute.
- References to the applicable treaty.
- Transfer pricing documentation.
- Certificates of tax residence.
- Correspondence with foreign tax authorities, among others.
The UAE CA confirms admissibility within an estimated period of two months, after which it may attempt to resolve the case unilaterally. If this is not possible, it initiates bilateral negotiations with the competent authority of the other country. The taxpayer does not participate directly in the negotiations, although it may be invited to present technical arguments.
Timeframes, results, and legal effects
The guide establishes that, under reasonable conditions of cooperation, the UAE CA undertakes to resolve MAP cases within an estimated period of 24 months after their acceptance. Once an agreement has been reached, the taxpayer has 30 days to accept or reject it. Acceptance entails waiving any legal action at the national level, and the FTA will proceed with the recognition and enforcement of the adjustment, including any refunds.
If no agreement is reached, the process is closed and the taxpayer must resort to domestic legal channels to defend their tax position.
Interaction with internal remedies
The filing of a claim with the MAP does not preclude the initiation of internal legal actions (such as before the Tax Dispute Resolution Committee or courts), provided that such actions are temporarily suspended while the MAP is pending. If a domestic court decision already exists, the UAE CPM is legally bound to respect it.
Regulatory context and comparative strategies
The UAE has more than 100 active double taxation treaties, many of which have been updated through the Multilateral Instrument (MLI), strengthening its mutual agreement procedure. The adoption of this guide coincides with the full implementation of the Corporate Tax (CT) and Transfer Pricing (TP) regimes, which have been integrated since 2023. This has led to an upward trend in international tax litigation related to price adjustments between related companies.
Conclusion
The MAP guide represents a decisive step toward strengthening legal certainty for taxpayers in the United Arab Emirates and aligns the country with international best practices under the OECD. It provides a clear framework with defined deadlines and specific roles for each actor, enabling companies to anticipate strategies in cross-border tax disputes. In an increasingly sophisticated regulatory environment, mastering the emerging MAP is a competitive advantage for multinationals operating from or to the UAE.
Fuente: https://mof.gov.ae/wp-content/uploads/2025/06/United-Arab-Emirates-Mutual-Agreement-Procedure-Guidance-1.pdf