A related party is an individual or entity who has a pre-existing relationship with a business that is within the scope of the UAE CT regime through ownership, control, or kinship (in the case of natural persons) There are different rules for determining whether parties involved in a transaction are considered “Related Parties” for UAE CT purposes. These are summarized below:
Two or more individuals related to the fourth degree of kinship or affiliation, including by birth, marriage,
adoption, or guardianship

An individual and a legal entity where alone, or together with a related party, the individual directly or
indirectly owns a 50% or greater share in, or controls, the legal entity
Two or more legal entities where one legal entity alone, or together with a related party, directly or
indirectly owns a 50% or greater share in, or controls, the other legal entity
Two or more legal entities if a taxpayer alone, or with a related party, directly or indirectly owns a 50%
share of each or controls them

➢ A taxpayer and its branch or permanent establishment
➢ Partners in the same unincorporated partnership
➢ Exempt and non-exempt business activities of the same person