![\"\u0414\u044f\u0447\u0435\u043d\u043a\u043e](\"https:\/\/audit-invest.com.ua\/wp-content\/uploads\/2026\/01\/Ohrimenko-Maksym-300x300.png\")
<\/p>\n
\n
\nMaksym Okhrimenko<\/strong> ,
\nSenior Assistant Consultant in Transfer Pricing
\n<\/span><\/div>\n<\/div>\n
Table of Contents<\/h3>\n\n- List of Legal Forms in the UAE<\/a><\/li>\n
- Convention between Ukraine and the UAE<\/a><\/li>\n
- Certificates from Non-residents and Their Legalization<\/a><\/li>\n
- Comparison: Certificates vs. TP Documentation<\/a><\/li>\n<\/ol>\n<\/div>\n
In practice, Ukrainian taxpayers frequently face tax risks resulting from transactions with non-residents whose legal forms are included in the List approved by Cabinet of Ministers of Ukraine (CMU) Resolution No. 480. Let\u2019s examine this using the example of operations conducted with residents of the United Arab Emirates (UAE).<\/p>\n
The table below presents the legal forms of UAE residents included in the CMU List No. 480. Transactions with these entities may be recognized as controlled or fall under the 30% tax adjustment requirement.<\/p>\n
CMU List No. 480: Legal Forms of UAE Residents<\/h2>\n
\n\n\nLatin Name \/ Abbreviation<\/th>\n Name in Ukrainian<\/span><\/th>\n Name in English<\/span><\/th>\n<\/tr>\n<\/thead>\n\n\nFree Zone Company (FZCO)<\/td>\n \u043a\u043e\u043c\u043f\u0430\u043d\u0456\u044f \u0432\u0456\u043b\u044c\u043d\u043e\u0457 \u0435\u043a\u043e\u043d\u043e\u043c\u0456\u0447\u043d\u043e\u0457 \u0437\u043e\u043d\u0438<\/td>\n Free Zone Company<\/td>\n<\/tr>\n \nFree Zone Establishment (FZE)<\/td>\n \u043f\u0456\u0434\u043f\u0440\u0438\u0454\u043c\u0441\u0442\u0432\u043e \u0432\u0456\u043b\u044c\u043d\u043e\u0457 \u0435\u043a\u043e\u043d\u043e\u043c\u0456\u0447\u043d\u043e\u0457 \u0437\u043e\u043d\u0438<\/td>\n Free Zone Establishment<\/td>\n<\/tr>\n \nFree Zone Limited Liability Company (FZ LLC)<\/td>\n \u043a\u043e\u043c\u043f\u0430\u043d\u0456\u044f \u0437 \u043e\u0431\u043c\u0435\u0436\u0435\u043d\u043e\u044e \u0432\u0456\u0434\u043f\u043e\u0432\u0456\u0434\u0430\u043b\u044c\u043d\u0456\u0441\u0442\u044e \u0432\u0456\u043b\u044c\u043d\u043e\u0457 \u0435\u043a\u043e\u043d\u043e\u043c\u0456\u0447\u043d\u043e\u0457 \u0437\u043e\u043d\u0438<\/td>\n Free Zone Limited Liability Company<\/td>\n<\/tr>\n \nLimited Liability Company (LLC)<\/td>\n \u043a\u043e\u043c\u043f\u0430\u043d\u0456\u044f \u0437 \u043e\u0431\u043c\u0435\u0436\u0435\u043d\u043e\u044e \u0432\u0456\u0434\u043f\u043e\u0432\u0456\u0434\u0430\u043b\u044c\u043d\u0456\u0441\u0442\u044e<\/td>\n Limited Liability Company<\/td>\n<\/tr>\n \nSole Proprietorship (SP)<\/td>\n \u0456\u043d\u0434\u0438\u0432\u0456\u0434\u0443\u0430\u043b\u044c\u043d\u0435 \u043f\u0440\u0438\u0432\u0430\u0442\u043d\u0435 \u043f\u0456\u0434\u043f\u0440\u0438\u0454\u043c\u0441\u0442\u0432\u043e<\/td>\n Sole Proprietorship<\/td>\n<\/tr>\n \nInternational Business Company (IBC)<\/td>\n \u043c\u0456\u0436\u043d\u0430\u0440\u043e\u0434\u043d\u0430 \u0431\u0456\u0437\u043d\u0435\u0441-\u043a\u043e\u043c\u043f\u0430\u043d\u0456\u044f<\/td>\n International Business Company<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\nFor the 2025 reporting year, transactions with the aforementioned non-residents may be recognized as non-controlled, provided that taxpayers submit a Certificate confirming that the non-resident is a resident of a country with which Ukraine has concluded a relevant international treaty (sub-paragraph 39.2.1.2 of the TCU).<\/p>\n
Paragraphs 103.5\u2013103.6 of the TCU establish the requirements for the form of the Certificate and the procedure for confirming residency, which grants controlling authorities the right to verify the validity of applying the international treaty.<\/p>\n
According to the position of the State Tax Service (STS), the Certificate may be issued either during the reporting year or after its conclusion, provided it explicitly states that the counterparty was a tax resident of the respective jurisdiction during that reporting year.<\/p>\n
Furthermore, in Individual Tax Consultations (ITCs), the STS insists that to avoid the 30% adjustment of the financial result (under sub-paragraphs 140.5.4 and 140.5.5-1 of the TCU) regarding goods, works, or services purchased from or sold to non-residents from List No. 480, a Certificate of Payment of Corporate Income Tax by the non-resident must be provided. This document must strictly comply with the legalization requirements under Ukrainian law (paras. 103.5\u2013103.6 of the TCU).<\/p>\n
The Position of the Tax Authority<\/strong><\/h3>\nWithin practical scenarios and in providing ITCs, the State Tax Service maintains that a Certificate confirming a non-resident’s residency in a treaty country is not identical <\/strong>to a document confirming the payment of corporate income tax by that non-resident. Consequently, a residency certificate alone cannot be used to exempt a taxpayer from the obligation to increase the financial result by 30% under sub-paragraphs 140.5.4 and 140.5.5-1 of the TCU.<\/p>\nConvention Between Ukraine and the UAE<\/h2>\n
The Government of Ukraine and the Government of the United Arab Emirates have concluded a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital<\/strong> (hereinafter \u2014 the Convention). The Convention has been ratified by Ukraine and is an integral part of its national legislation. However, the Convention does not regulate procedural matters regarding the confirmation of the actual payment of corporate tax in the state of residency.<\/p>\nOn one hand, the Convention is active and ratified; on the other hand, avoiding the 30% adjustments under sub-paragraphs 140.5.4 and 140.5.5-1 of the Tax Code of Ukraine (TCU) <\/strong>is associated with substantial tax risks in practice.<\/p>\nThe UAE Tax System: Structural Features<\/strong><\/h3>\nUntil 2023, the UAE was positioned as a jurisdiction with zero corporate taxation, where taxes were applied selectively (primarily to banks and the oil and gas sector).<\/p>\n
By Federal Decree-Law No. 47 of 2022, the UAE introduced a Corporate Tax, applicable to financial years starting on or after June 1, 2023. The standard corporate tax rate is 9% (with certain exceptions).<\/p>\n
Companies registered in Free Zones apply a 0% rate, provided they earn “qualified income” from activities within the Free Zones and meet specific requirements as a Qualifying Free Zone Person. These requirements include:<\/p>\n
\n- \n
Maintaining adequate economic substance;<\/p>\n<\/li>\n
- \n
The specific nature of the income;<\/p>\n<\/li>\n
- \n
Compliance with tax and transfer pricing (TP) rules.<\/p>\n<\/li>\n<\/ul>\n
Otherwise, the general tax regime with a 9% rate is applied.<\/p>\n
\nCompanies registered in Free Zones must be legally established within the respective zone and hold a valid Free Zone license. Such companies are recognized as tax residents of the UAE for corporate tax purposes.<\/p>\n<\/div>\n
Certificates from UAE Non-residents and Their Legalization<\/h2>\n\nTax Residency Certificate: <\/strong><\/p>\nA Tax Residency Certificate in the UAE can be obtained; however, it does not confirm the actual payment of corporate tax.<\/p>\n
Tax Payment Certificate: <\/strong><\/p>\nIn most cases, the UAE lacks a standardized administrative document that specifically confirms the payment of corporate tax, especially for companies operating within Free Zones. This is due to both the unique features of the tax system and the absence of a single centralized authority designated to issue such certificates.<\/p>\n
Consular Legalization: <\/strong><\/p>\nThe UAE is not a party to the 1961 Hague Convention, which introduced the Apostille. Consequently, documents issued in the UAE must undergo the full consular legalization process to be legally recognized in Ukraine.<\/p>\n
According to the Convention, the term “Competent Authority” authorized to issue Certificates means: in the UAE \u2014 the Ministry of Finance and Industry or its authorized representative, the Federal Tax Authority (FTA).<\/p>\n
The consular legalization procedure is multi-tiered, time-consuming, and does not guarantee that the documents will be accepted by the tax authorities of Ukraine.<\/p>\n
The figure below schematically illustrates the process of confirming the tax residency of UAE companies for the purposes of applying the Convention, as well as the key risks arising at each stage of confirmation.<\/p>\n
\u00a0<\/strong><\/p>\n\nOperations with a UAE Resident<\/span><\/div>\n<\/div>\nApplication of the Convention<\/span><\/div>\n<\/div>\nObtaining Certificates from the Non-resident<\/span><\/div>\n\n\nRequest for a Tax Residency Certificate<\/span><\/div>\n<\/div>\nConsular Legalization Process:<\/div>\n<\/div>\n\nRequest for a Corporate Tax Payment Certificate<\/span><\/div>\n<\/div>\nRisk: Absence of a standardized document confirming tax payment<\/div>\n<\/div>\n<\/div>\n\n\nThe Documentation Path: UAE to Ukraine<\/span><\/div>\nDocument Issuance in the UAE: Federal Tax Authority (FTA).<\/span><\/div>\nAttestation in the UAE: Ministry of Foreign Affairs (MOFA), UAE.<\/span><\/div>\n\nConsular Office of Ukraine in the UAE:<\/span><\/p>\nRisk: Formal objections or delays during the authentication process.<\/span><\/span><\/p>\n<\/div>\nTax Authorities of Ukraine:<\/span>
\nRisk:<\/b> Rejection of the document due to formal discrepancies or non-standard wording.<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\nThe primary risk remains the non-acceptance of the certificate by the tax authorities of Ukraine<\/div>\n<\/div>\nThe Strategic Alternative: TP Documentation<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\nTP Documentation as a Risk Management Tool<\/h2>\nTax Risks for the Ukrainian Taxpayer<\/h3>\n
In practice, attempting to confirm the right to apply the Convention solely through a UAE residency certificate is accompanied by the following risks:<\/p>\n
\n- Rejection of certificates by the controlling authorities due to formal or structural discrepancies.<\/li>\n
- Forced adjustment of the financial result by 30%.<\/li>\n
- Assessment of additional corporate income tax liabilities and the imposition of significant financial penalties.<\/li>\n<\/ul>\n
Transfer Pricing Documentation: A Proactive Solution<\/strong><\/h3>\nTransfer Pricing documentation, prepared in accordance with Article 39 of the TCU and OECD approaches, allows you to substantiate the economic substance of transactions, the level of profitability, and compliance with the “Arm’s Length” principle.<\/p>\n
\n\n\nCriterion<\/th>\n UAE Certificates<\/th>\n \u00a0TP Documentation<\/th>\n<\/tr>\n<\/thead>\n \n\nDependence on foreign authorities<\/td>\n High<\/td>\n None<\/td>\n<\/tr>\n \nAvailability<\/td>\n Limited \/ Unstable<\/td>\n Fully controlled<\/td>\n<\/tr>\n \nConsular Legalization<\/td>\n Required<\/td>\n Not required<\/td>\n<\/tr>\n \nTimeframes<\/td>\n Not required<\/td>\n According to Article 39 of the TCU<\/td>\n<\/tr>\n \nOECD approach & Economic substance<\/td>\n Limited (confirms formal status only)<\/td>\n Full (confirms “Arm’s Length” nature)<\/td>\n<\/tr>\n \nAudit Defense<\/td>\n Formal<\/td>\n Systematic<\/td>\n<\/tr>\n \nRisk of rejection by the Tax Service<\/td>\n High<\/td>\n Minimal<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n!<\/div>\n\nConclusion:<\/strong><\/p>\nThe specific nature of the UAE tax system, the lack of a universal mechanism for confirming corporate tax payments, and the complex procedures of consular legalization objectively complicate the use of non-resident certificates as a sole instrument of tax protection.<\/p>\n
Under such conditions, the preparation of proper Transfer Pricing Documentation is a more predictable, controlled, and legally sound approach to minimizing tax risks in transactions with UAE counterparties.<\/p>\n<\/div>\n
\u00a0<\/span><\/div>\n<\/div>\n\nReferences Used in This Article:<\/h2>\n\n- https:\/\/zakon.rada.gov.ua\/laws\/show\/480-2017-\u043f#Text<\/em><\/li>\n
- https<\/em>:\/\/<\/em>zakon<\/em>.<\/em>rada<\/em>.<\/em>gov<\/em>.<\/em>ua<\/em>\/<\/em>laws<\/em>\/<\/em>show<\/em>\/1045-2017-\u043f\/#<\/em>Text<\/em><\/li>\n
- https<\/em>:\/\/<\/em>tax<\/em>.<\/em>gov<\/em>.<\/em>ua<\/em>\/<\/em>nk<\/em>\/<\/em>spisok<\/em>2\/<\/em>glava<\/em>-10–<\/em>zastosuvannya<\/em>–<\/em>mijna<\/em>\/<\/em><\/li>\n
- https:\/\/zakon.rada.gov.ua\/laws\/show\/784_003<\/li>\n
- https:\/\/tax.gov.ua\/data\/material\/000\/594\/711696\/140.5.4_.pdf<\/li>\n
- https:\/\/mof.gov.ae\/wp-content\/uploads\/2022\/12\/Federal-Decree-Law-No.-47-of-2022-EN.pdf<\/li>\n<\/ol>\n<\/div>\n
<\/span><\/p>\n\n\n\n\n<\/span><\/p>\n![\"Audit](\"https:\/\/audit-invest.com.ua\/wp-content\/uploads\/2017\/04\/logo_auditinvest.png\")
<\/span><\/div>\n<\/span><\/p>\n\nReady to prepare your Transfer Pricing documentation?<\/strong><\/strong><\/span>Audit Invest will help: screening of operations with non-residents, CO reports, and a full package of transfer pricing documentation.<\/p>\n
In practice, Ukrainian taxpayers frequently face tax risks resulting from transactions with non-residents whose legal forms are included in the List approved by Cabinet of Ministers of Ukraine (CMU) Resolution No. 480. Let\u2019s examine this using the example of operations conducted with residents of the United Arab Emirates (UAE).<\/p>\n
The table below presents the legal forms of UAE residents included in the CMU List No. 480. Transactions with these entities may be recognized as controlled or fall under the 30% tax adjustment requirement.<\/p>\n
CMU List No. 480: Legal Forms of UAE Residents<\/h2>\n
| Latin Name \/ Abbreviation<\/th>\n | Name in Ukrainian<\/span><\/th>\n | Name in English<\/span><\/th>\n<\/tr>\n<\/thead>\n\n| Free Zone Company (FZCO)<\/td>\n | \u043a\u043e\u043c\u043f\u0430\u043d\u0456\u044f \u0432\u0456\u043b\u044c\u043d\u043e\u0457 \u0435\u043a\u043e\u043d\u043e\u043c\u0456\u0447\u043d\u043e\u0457 \u0437\u043e\u043d\u0438<\/td>\n | Free Zone Company<\/td>\n<\/tr>\n | Free Zone Establishment (FZE)<\/td>\n | \u043f\u0456\u0434\u043f\u0440\u0438\u0454\u043c\u0441\u0442\u0432\u043e \u0432\u0456\u043b\u044c\u043d\u043e\u0457 \u0435\u043a\u043e\u043d\u043e\u043c\u0456\u0447\u043d\u043e\u0457 \u0437\u043e\u043d\u0438<\/td>\n | Free Zone Establishment<\/td>\n<\/tr>\n | Free Zone Limited Liability Company (FZ LLC)<\/td>\n | \u043a\u043e\u043c\u043f\u0430\u043d\u0456\u044f \u0437 \u043e\u0431\u043c\u0435\u0436\u0435\u043d\u043e\u044e \u0432\u0456\u0434\u043f\u043e\u0432\u0456\u0434\u0430\u043b\u044c\u043d\u0456\u0441\u0442\u044e \u0432\u0456\u043b\u044c\u043d\u043e\u0457 \u0435\u043a\u043e\u043d\u043e\u043c\u0456\u0447\u043d\u043e\u0457 \u0437\u043e\u043d\u0438<\/td>\n | Free Zone Limited Liability Company<\/td>\n<\/tr>\n | Limited Liability Company (LLC)<\/td>\n | \u043a\u043e\u043c\u043f\u0430\u043d\u0456\u044f \u0437 \u043e\u0431\u043c\u0435\u0436\u0435\u043d\u043e\u044e \u0432\u0456\u0434\u043f\u043e\u0432\u0456\u0434\u0430\u043b\u044c\u043d\u0456\u0441\u0442\u044e<\/td>\n | Limited Liability Company<\/td>\n<\/tr>\n | Sole Proprietorship (SP)<\/td>\n | \u0456\u043d\u0434\u0438\u0432\u0456\u0434\u0443\u0430\u043b\u044c\u043d\u0435 \u043f\u0440\u0438\u0432\u0430\u0442\u043d\u0435 \u043f\u0456\u0434\u043f\u0440\u0438\u0454\u043c\u0441\u0442\u0432\u043e<\/td>\n | Sole Proprietorship<\/td>\n<\/tr>\n | International Business Company (IBC)<\/td>\n | \u043c\u0456\u0436\u043d\u0430\u0440\u043e\u0434\u043d\u0430 \u0431\u0456\u0437\u043d\u0435\u0441-\u043a\u043e\u043c\u043f\u0430\u043d\u0456\u044f<\/td>\n | International Business Company<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n | For the 2025 reporting year, transactions with the aforementioned non-residents may be recognized as non-controlled, provided that taxpayers submit a Certificate confirming that the non-resident is a resident of a country with which Ukraine has concluded a relevant international treaty (sub-paragraph 39.2.1.2 of the TCU).<\/p>\n Paragraphs 103.5\u2013103.6 of the TCU establish the requirements for the form of the Certificate and the procedure for confirming residency, which grants controlling authorities the right to verify the validity of applying the international treaty.<\/p>\n According to the position of the State Tax Service (STS), the Certificate may be issued either during the reporting year or after its conclusion, provided it explicitly states that the counterparty was a tax resident of the respective jurisdiction during that reporting year.<\/p>\n Furthermore, in Individual Tax Consultations (ITCs), the STS insists that to avoid the 30% adjustment of the financial result (under sub-paragraphs 140.5.4 and 140.5.5-1 of the TCU) regarding goods, works, or services purchased from or sold to non-residents from List No. 480, a Certificate of Payment of Corporate Income Tax by the non-resident must be provided. This document must strictly comply with the legalization requirements under Ukrainian law (paras. 103.5\u2013103.6 of the TCU).<\/p>\n The Position of the Tax Authority<\/strong><\/h3>\nConvention Between Ukraine and the UAE<\/h2>\nThe Government of Ukraine and the Government of the United Arab Emirates have concluded a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital<\/strong> (hereinafter \u2014 the Convention). The Convention has been ratified by Ukraine and is an integral part of its national legislation. However, the Convention does not regulate procedural matters regarding the confirmation of the actual payment of corporate tax in the state of residency.<\/p>\n On one hand, the Convention is active and ratified; on the other hand, avoiding the 30% adjustments under sub-paragraphs 140.5.4 and 140.5.5-1 of the Tax Code of Ukraine (TCU) <\/strong>is associated with substantial tax risks in practice.<\/p>\n Until 2023, the UAE was positioned as a jurisdiction with zero corporate taxation, where taxes were applied selectively (primarily to banks and the oil and gas sector).<\/p>\n By Federal Decree-Law No. 47 of 2022, the UAE introduced a Corporate Tax, applicable to financial years starting on or after June 1, 2023. The standard corporate tax rate is 9% (with certain exceptions).<\/p>\n Companies registered in Free Zones apply a 0% rate, provided they earn “qualified income” from activities within the Free Zones and meet specific requirements as a Qualifying Free Zone Person. These requirements include:<\/p>\n Maintaining adequate economic substance;<\/p>\n<\/li>\n The specific nature of the income;<\/p>\n<\/li>\n Compliance with tax and transfer pricing (TP) rules.<\/p>\n<\/li>\n<\/ul>\n Otherwise, the general tax regime with a 9% rate is applied.<\/p>\n Companies registered in Free Zones must be legally established within the respective zone and hold a valid Free Zone license. Such companies are recognized as tax residents of the UAE for corporate tax purposes.<\/p>\n<\/div>\n Tax Residency Certificate: <\/strong><\/p>\n A Tax Residency Certificate in the UAE can be obtained; however, it does not confirm the actual payment of corporate tax.<\/p>\n Tax Payment Certificate: <\/strong><\/p>\n In most cases, the UAE lacks a standardized administrative document that specifically confirms the payment of corporate tax, especially for companies operating within Free Zones. This is due to both the unique features of the tax system and the absence of a single centralized authority designated to issue such certificates.<\/p>\n Consular Legalization: <\/strong><\/p>\n The UAE is not a party to the 1961 Hague Convention, which introduced the Apostille. Consequently, documents issued in the UAE must undergo the full consular legalization process to be legally recognized in Ukraine.<\/p>\n According to the Convention, the term “Competent Authority” authorized to issue Certificates means: in the UAE \u2014 the Ministry of Finance and Industry or its authorized representative, the Federal Tax Authority (FTA).<\/p>\n The consular legalization procedure is multi-tiered, time-consuming, and does not guarantee that the documents will be accepted by the tax authorities of Ukraine.<\/p>\n The figure below schematically illustrates the process of confirming the tax residency of UAE companies for the purposes of applying the Convention, as well as the key risks arising at each stage of confirmation.<\/p>\n \u00a0<\/strong><\/p>\n Consular Office of Ukraine in the UAE:<\/span><\/p>\n Risk: Formal objections or delays during the authentication process.<\/span><\/span><\/p>\n<\/div>\n In practice, attempting to confirm the right to apply the Convention solely through a UAE residency certificate is accompanied by the following risks:<\/p>\n Transfer Pricing documentation, prepared in accordance with Article 39 of the TCU and OECD approaches, allows you to substantiate the economic substance of transactions, the level of profitability, and compliance with the “Arm’s Length” principle.<\/p>\n Conclusion:<\/strong><\/p>\n The specific nature of the UAE tax system, the lack of a universal mechanism for confirming corporate tax payments, and the complex procedures of consular legalization objectively complicate the use of non-resident certificates as a sole instrument of tax protection.<\/p>\n Under such conditions, the preparation of proper Transfer Pricing Documentation is a more predictable, controlled, and legally sound approach to minimizing tax risks in transactions with UAE counterparties.<\/p>\n<\/div>\n <\/span><\/p>\n <\/span><\/p>\n <\/span><\/p>\n Ready to prepare your Transfer Pricing documentation?<\/strong><\/strong><\/span>Audit Invest will help: screening of operations with non-residents, CO reports, and a full package of transfer pricing documentation.<\/p>\n |
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