Are there any excluded transactions from the local file?

Are there any excluded transactions from the local file?

A company must include all its deals with other companies it’s connected to in the local file, except for these situations:

  • If they’re dealing with a regular person, and both parties act as if they are not connected, they don’t need to include it.
  • If it’s a company that’s only connected because they’re partners in a partnership, and they act independently, it’s also excluded.
  • If it’s a local company with the same tax rate as the main company, they don’t need to include their deals.
  • If it’s a branch of a foreign company in the UAE with the same tax rate, it’s also excluded.

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