Question 1

What are the UAE Corporate Tax record-keeping requirements for 2026?

Accepted Answer

Under Federal Decree-Law No. 47 and Article 52 of the Tax Procedures Law, taxable persons must maintain records for 7 years. Arakan Protocol ensures these records remain in-situ within the UAE digital perimeter to satisfy data residency mandates.

Question 2

How does Pillar Two affect multinational groups in the UAE?

Accepted Answer

Pillar Two introduces a 15% global minimum tax for MNE groups with revenues exceeding EUR 750 million. Arakan provides automated GloBE substantiation and jurisdictional nexus mapping to manage top-up tax liabilities.

Question 3

What is the 0% Qualifying Free Zone Person (QFZP) status?

Accepted Answer

A QFZP is a Free Zone entity that maintains adequate substance in the UAE and derives Qualifying Income. Failure to demonstrate Core Income Generating Activities (CIGA) can result in a retroactive 9% tax liability.

QUALIFYING

Regulatory Activity Scope

Forensic Audit Red Flag

Statutory Authority

Nexus Requirement

2026 Substance Compliance