Optimizing Tax Efficiency Across Borders
Managing Cross-Border Tax Liabilities
The GCC’s tax environment is evolving with new UAE corporate tax and changing VAT rules. G12 helps your business stay compliant with local and international standards, including OECD BEPS guidelines.
We support multinationals in documenting substance, managing intercompany transactions, and meeting FTA’s reporting and treaty requirements to prevent double taxation.
Core Tax Competencies
Our Taxation Framework
We divide our international tax services into three critical pillars to address specific regulatory triggers and wealth management needs.
1. Global Mobility Services
Tax Management for Expatriates and Cross-Border Employees
Moving talent across borders creates complex tax residency and social security obligations. G12 advises organizations on the tax implications of secondments, remote work arrangements, and executive compensation. We ensure compliance with UAE tax residency rules and international treaties to prevent double taxation on employee income.
2. Family Trust Set up Advisory
Structuring Wealth and Succession Planning
Protecting family assets requires legal structures that withstand international scrutiny and local inheritance laws. We assist in establishing Family Trusts and Foundations (such as in DIFC or ADGM) to consolidate assets, ensure distinct legal personality, and facilitate efficient succession planning without heavy tax leakage.
3. Master File Maintenance
Transfer Pricing and Group Documentation
Multinational Groups (MNEs) operating in the UAE must maintain a Master File to provide a high-level overview of their global business operations and transfer pricing policies. G12 compiles this mandatory documentation to validate that your group’s intercompany transactions align with the Arm’s Length Principle, satisfying specific revenue thresholds and FTA requirements.
Strategic Impact of International Tax Planning
Why Cross-Border Compliance Matters
Adhering to international tax protocols is not optional for entities with a global footprint. It functions as a shield against regulatory penalties and reputational damage.
- Mitigating Double Taxation: Utilizing Double Taxation Avoidance Agreements (DTAAs) to prevent paying tax on the same income in two different jurisdictions.
- Regulatory Adherence: Ensuring alignment with Economic Substance Regulations (ESR) and Country-by-Country Reporting (CbCR) standards.
- Penalty Prevention: avoiding the steep administrative fines associated with late filings, incorrect transfer pricing documentation, or misclassification of entities.
- Operational Clarity: Defining clear tax positions for investors and stakeholders regarding liabilities in the UAE and the wider GCC region.
Critical Tax Considerations in the GCC
Navigating the Regional Tax Net
Operating within the GCC requires specific attention to the interplay between local laws and regional agreements.
- UAE Corporate Tax: Compliance with the 9% statutory rate and understanding exemptions for Qualifying Free Zone Persons.
- Transfer Pricing (TP): Mandatory TP documentation is required for taxable persons to prove that related-party transactions are conducted at market value.
- Withholding Tax: Managing obligations regarding payments made to non-residents for specific categories of income.
- BEPS Compliance: Adhering to the OECD’s inclusive framework to prevent tax base erosion strategies.
Why Choose G12 for Tax Advisory?
Technical Expertise in GCC Tax Laws
Accredited Tax Experts:
Our team comprises tax advisors and chartered accountants with deep experience in UAE Federal Decree-Laws and GCC tax frameworks.
Proactive Regulatory Monitoring:
We track FTA updates and OECD amendments daily to keep your compliance strategy current.
Data-Driven Documentation:
We utilize robust methodologies to prepare Master Files and Local Files that stand up to audit scrutiny.
Strict Confidentiality:
Sensitive financial data and family wealth structures are managed with absolute discretion and security protocols.
