What is the meaning of Control under the UAE Corporate Tax Law?

Transfer Pricing
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What is the meaning of Control under the UAE Corporate Tax Law?

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Control is the direction and influence over one person by another person and for instance, can be determined in the below manner:

If a person has the ability to exercise 50% or more of the voting rights of another person, then it has control over another person.

  • A person can exercise 50% or more of the voting rights of another Person;

  • A person can determine the composition of 50% or more of the board of directors of another Person;

  • A person can receive 50% or more of the profits of another Person; or

  • A person can determine or exercise significant influence over the conduct of the business and affairs of another Person.