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Tax Proration Agreement

Tax Proration Agreement Generator for United Arab Emirates

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Key Requirements PROMPT example:

Tax Proration Agreement

"I need a Tax Proration Agreement for a joint venture between three UAE companies operating a shared warehouse facility in Dubai, with the agreement to take effect from January 2025 and include specific provisions for both VAT and corporate tax allocation."

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Document background
A Tax Proration Agreement is essential in the UAE business environment where multiple entities may share tax obligations or require structured allocation of tax liabilities. This document type has gained particular importance following the introduction of UAE corporate tax and existing VAT requirements. The agreement is commonly used in joint ventures, group company structures, or shared facility arrangements where tax obligations need to be fairly distributed. It provides detailed mechanisms for tax allocation, payment procedures, and compliance responsibilities, ensuring alignment with UAE federal tax laws and regulations. The document typically includes specific calculations, timelines, and procedures for tax sharing, making it crucial for businesses operating under shared tax arrangements in the UAE.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including their full legal names, addresses, and registration details

2. Background: Context of the agreement, including the relationship between parties and the purpose of the tax proration arrangement

3. Definitions and Interpretation: Detailed definitions of terms used in the agreement, including specific tax-related terminology and calculation methods

4. Scope of Agreement: Clear delineation of which taxes and time periods are covered by the proration arrangement

5. Tax Allocation Methodology: Detailed explanation of how different types of taxes will be allocated between the parties

6. Payment Terms and Mechanics: Procedures for calculating, invoicing, and settling tax payments between parties

7. Record Keeping and Documentation: Requirements for maintaining tax records and supporting documentation

8. Tax Returns and Compliance: Responsibilities for tax filing and ensuring compliance with UAE tax laws

9. Dispute Resolution: Procedures for resolving disagreements about tax calculations or payments

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. General Provisions: Standard legal provisions including governing law, notices, and amendments

Optional Sections

1. International Tax Considerations: Required when parties are subject to international tax treaties or cross-border transactions are involved

2. Special Industry Provisions: Needed for specific industries with unique tax treatment under UAE law

3. Group Company Provisions: Required when dealing with tax groups or related company structures

4. Tax Audit Cooperation: Detailed procedures for handling tax audits when multiple parties are involved

5. Force Majeure: Specific provisions for handling tax obligations during extraordinary circumstances

6. Transition Provisions: Required when implementing new tax proration arrangements or changing existing ones

Suggested Schedules

1. Schedule 1 - Tax Calculation Methodology: Detailed formulas and examples of how tax prorations will be calculated

2. Schedule 2 - Allocation Percentages: Specific percentage splits for different types of taxes or business activities

3. Schedule 3 - Payment Procedures: Detailed procedures for making tax-related payments between parties

4. Schedule 4 - Required Documentation: List of documents required for tax compliance and record-keeping

5. Appendix A - Tax Calendar: Timeline of tax payment and filing deadlines

6. Appendix B - Contact Details: List of key contacts responsible for tax matters at each party

7. Appendix C - Reporting Templates: Standardized formats for tax-related reporting between parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Accounting Period
Agreed Proportion
Allocation Percentage
Applicable Laws
Business Day
Calculation Date
Competent Authority
Corporate Tax
Effective Date
Eligible Tax
Federal Tax Authority
Financial Year
Group Relief
Input Tax
Joint Liability
Ministry of Finance
Output Tax
Payment Date
Pro Rata Share
Reconciliation Period
Related Party
Relevant Period
Settlement Period
Shared Facility
Tax Assessment
Tax Audit
Tax Credit
Tax Group
Tax Invoice
Tax Liability
Tax Loss
Tax Payment
Tax Period
Tax Rate
Tax Records
Tax Registration Number
Tax Return
Tax Year
Taxable Income
Taxable Supply
UAE Corporate Tax Law
UAE VAT Law
Value Added Tax
Working Capital Adjustment
Clauses
Interpretation
Definitions
Tax Allocation
Payment Obligations
Calculation Methods
Record Keeping
Information Sharing
Compliance
Tax Filing
Audit Rights
Confidentiality
Dispute Resolution
Force Majeure
Governing Law
Jurisdiction
Notices
Assignment
Amendment
Severability
Entire Agreement
Tax Adjustments
Payment Mechanics
Default
Remedies
Term
Termination
Representatives
Authority
Warranties
Indemnification
Tax Reporting
Cooperation
Cost Sharing
Documentation
Electronic Communications
Good Faith
Insurance
Third Party Rights
Waiver
Relevant Industries

Real Estate

Financial Services

Professional Services

Manufacturing

Retail

Hospitality

Healthcare

Energy

Construction

Technology

Trading

Free Zone Operations

Relevant Teams

Finance

Legal

Tax

Compliance

Treasury

Corporate Governance

Risk Management

Financial Planning & Analysis

Accounting

Relevant Roles

Chief Financial Officer

Tax Director

Finance Manager

Tax Manager

Financial Controller

Compliance Officer

Treasury Manager

Group Finance Director

Tax Compliance Specialist

Corporate Counsel

Legal Director

Financial Planning Manager

Accounts Manager

Risk Manager

Industries
Federal Decree-Law No. 47 of 2022: UAE Corporate Tax Law - Essential for understanding the corporate tax obligations that may need to be prorated between parties
Federal Decree-Law No. 8 of 2017: UAE VAT Law - Relevant for any VAT-related prorations and obligations between parties
UAE Federal Law No. 5 of 1985 (Civil Code): Contains general principles of contract formation, validity, and enforcement that will govern the agreement
UAE Federal Law No. 18 of 1993 (Commercial Transactions Law): Relevant for commercial aspects of the agreement and business relationships between parties
Cabinet Decision No. 52 of 2017: Executive Regulations of Federal Decree-Law No. 8 of 2017 on VAT - Provides detailed implementation guidelines for VAT matters
UAE Double Tax Treaties: Relevant international tax agreements if the proration involves international parties or cross-border transactions
UAE Ministry of Finance Tax Procedures Law: Governs general tax procedures and compliance requirements that may affect the proration calculations and obligations
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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