If your business enters into cross-border or domestic transactions with related parties, transfer pricing risk is now firmly on the Federal Tax Authority’s (FTA) radar. The UAE APA pre-filing consultation is the first formal step towards securing an Advance Pricing Agreement (APA), a mechanism that locks in your transfer pricing methodology with the FTA and removes the uncertainty of future tax disputes.
This guide explains exactly how the pre-filing consultation stage works, who should use it, what documents you need, and what happens next.
Whether you are a UAE Tax Group, a multinational with related-party transactions, or a Qualifying Free Zone Person dealing with a mainland entity, understanding this process could save you significant time, cost, and litigation risk further down the line.
What Is an APA Pre-Filing Consultation?
A pre-filing consultation is a preliminary engagement between a taxable Person (or its registered Tax Agent) and the FTA, held before a formal APA application is submitted. It allows both parties to assess whether the proposed Controlled Transactions are suitable for an Advance Pricing Agreement.
A pre-filing consultation addresses:
- The scope of the proposed APA, including the Controlled Transactions and the period to be covered.
- Details of any other Controlled Transactions that are not proposed to be covered.
- Identification of potential transfer pricing issues or areas of complexity.
- An evaluation of the suitability of the proposed transfer pricing methodology and other terms.
- Any prior APAs obtained in foreign jurisdictions covering the same transactions, or relevant litigation history.
- Any other information the FTA considers relevant.
Importantly, a pre-filing consultation does not bind the FTA to enter into an APA, nor does it constitute a formal APA application. It is a suitability check, not a decision.
Who Should Consider a Pre-Filing Consultation?
You may benefit from initiating a pre-filing consultation if:
- You have proposed or entered into domestic and/or cross-border Controlled Transactions that meet the materiality threshold (see below).
- There is significant uncertainty in determining the arm’s length price for complex Business operations or transactions.
- Your Controlled Transactions have historically been subject to Federal Tax Authority audit.
- You are a Qualifying Free Zone Person transacting with a mainland Related Party, or vice versa.
- Your entity is a Government Entity, Government Controlled Entity, Extractive Business, or Non-Extractive Natural Resource Business with domestic related-party dealings taxed at different rates.
Controlled Transactions falling under safe harbour provisions, including low value-adding intra-group services, are excluded from APA consideration entirely.
The Materiality Threshold You Must Meet
Before approaching the FTA, check whether your transactions clear the financial bar:
- The total or expected value of all Controlled Transactions proposed for the APA must be at least AED 100 million per Tax Period.
- This value must be calculated on an arm’s length basis, as determined by the Person’s own analysis at the time of submission.
- For a Tax Group, the AED 100 million threshold applies at the Tax Group level, based on transactions between the Tax Group and Related Parties outside the group.
- Meeting the threshold does not guarantee acceptance, and falling short does not automatically mean rejection, the FTA assesses each request on its facts. If you are below the threshold, you will need to provide a robust justification for why an APA is still warranted.
Documents and Information Required for the Pre-Filing Request
The pre-filing request must be submitted using the FTA’s prescribed form (Appendix 2 of the CTGAPA1 guide), and typically includes:
- The Person’s name, Tax Registration Number, and address details.
- A description of the Person’s primary business.
- The group structure, including the Ultimate Parent Entity.
- The type of APA requested, unilateral domestic or unilateral cross-border.
- An overview of the industry and the group’s business operations.
- The Tax Periods proposed to be covered.
- For each proposed Controlled Transaction: a description, its value or expected value, the functional currency, the proposed transfer pricing method, and the proposed arm’s length price with a high-level economic analysis.
- Corporate Tax litigation history and the status of any appeals, both in the UAE and abroad.
- Details of any APAs already in progress or concluded in other tax jurisdictions covering the same transactions.
- Proposed critical assumptions underlying the arrangement.
- A signed and attested Power of Attorney, where the request is filed by a Tax Agent or Legal Representative.
Only a Tax Agent registered for Corporate Tax purposes with the FTA may submit the request on a Person’s behalf, and for a Tax Group, only the Parent Company can file on behalf of the group or its members.
Step-by-Step: How the Pre-Filing Consultation Process Works
- Submission of the request
The pre-filing consultation can be submitted from 30 December 2025 by email to APA@tax.gov.ae, or in future via EmaraTax once that channel is announced.
- FTA review of the request
The FTA reviews the pre-filing request and any supporting documentation. If information is missing, it will notify you of what is required before scheduling a meeting. Where the FTA raises further queries, you are expected to respond within 40 Business Days of each request.
- Pre-filing meeting
The FTA schedules a meeting, virtual or face-to-face, to gather sufficient information to decide whether an APA is viable. Depending on complexity, more than one meeting may be needed. This stage is for assessing suitability only; any views exchanged cannot be relied upon as certainty over your transfer pricing position.
- Notification of outcome
You will be notified of the FTA’s understanding on the transfer pricing issues discussed within 60 Business Days of the pre-filing meeting, assuming no further information is outstanding.
- Overall indicative timeline
The FTA aims to conclude the pre-filing consultation stage within six to nine months of receiving the request, provided you respond promptly to information requests.
When Might the FTA Reject a Pre-Filing Request?
The FTA can decline to proceed with a pre-filing request for a number of reasons, including where:
- The proposed Controlled Transactions suggest a tax avoidance strategy.
- The scenario presented is superficial or has not been fully thought through.
- Pursuing an APA appears inefficient given the limited scope involved.
- The arm’s length principle can already be applied reliably, without significant doubt.
- Significant business restructuring is forecast during the proposed APA period, which could render the outcome irrelevant.
- The Business is unpredictable or undergoing significant fluctuations at the time of the request.
- Transactions are included or excluded from the request without satisfactory rationale.
- Historical records are insufficient to support reliable projections, or there are discrepancies in the proposed method or benchmarking analysis.
If you anticipate any of these issues, it is worth addressing them proactively with a transfer pricing adviser before submission.
What Happens After the Pre-Filing Consultation?
If the FTA is satisfied following the pre-filing consultation, it will notify you to proceed with the formal APA application. From that point:
You must submit the UAPA application within 40 Business Days of the FTA’s notification, or at least twelve months before the start of the first Tax Period to be covered, whichever is earlier.
The APA application requires far more detailed information than the pre-filing stage, including a full functional and risk analysis, benchmarking studies, financial statements, and historic transfer pricing documentation.
A non-refundable fee of AED 30,000 applies at the time of filing the formal APA application, covering any later revisions or amendments.
If the pre-filing consultation does not lead to a positive outcome, the request will simply be closed, no APA application is required, and no application fee is payable at this stage.
Frequently Asked Questions
Does a pre-filing consultation guarantee I will get an APA?
No. It only assesses suitability. The FTA’s involvement in a pre-filing consultation does not bind it to conclude an APA, and it does not treat your business as having formally applied.
Can I include cross-border transactions in a pre-filing consultation now?
You can request it, but the FTA’s acceptance window for cross-border UAPA applications is still to be confirmed in 2026. Domestic transactions can proceed now.
What if my Controlled Transactions fall below the AED 100 million threshold?
You may still apply, but you will need to provide a strong justification for why an APA would materially assist with compliance and certainty despite not meeting the indicative threshold.
Get Expert Support with Your UAE APA Pre-Filing Consultation
Navigating the FTA’s APA pre-filing consultation requires a precise understanding of transfer pricing methodology, documentation standards, and the FTA’s evaluation criteria. Getting it wrong at this stage can mean delays, rejection, or a missed filing window tied to your Tax Period.
Tax Gian’s transfer pricing and corporate tax specialists help UAE businesses assess APA eligibility, prepare pre-filing consultation requests, and manage the full APA process from first enquiry through to a signed agreement with the Federal Tax Authority.
Talk to Tax Gian today to find out whether an Advance Pricing Agreement is right for your business.
