Transfer Pricing

The UAE companies are required to assess whether they must abide by transfer pricing rules since the introduction of corporate tax in the UAE. Multinational Enterprises (MNEs) carrying out cross-border transactions with their group entities located in different tax jurisdictions may be required to assess their transfer pricing requirements.

Such entities need to ensure that the prices of intra-group transactions are meeting the Arm’s Length Standard. It means the transactions between the related parties should be priced as if they were carried out among independent entities under similar circumstances in the open market.

UAE’s Transfer Pricing Regulations

Businesses need to comply with the transfer pricing requirements in the UAE to avoid costly litigation. The Federal Tax Authority (FTA) will scrutinize the accuracy and appropriateness of your transfer pricing arrangements to see if they are in line with the Arm’s Length Standard. You need to justify the appropriateness of your transfer pricing arrangements by submitting the required transfer pricing documentation.

Transfer Pricing Documentation in UAE

Proper transfer pricing documentation in UAE is an essential requirement to justify that your transfer pricing arrangements are meeting the arm’s length principle. You need to maintain the local file, master file and Country-by-Country (CbC) report based on the threshold stipulated by the FTA. A transfer pricing disclosure form is also part of the transfer pricing documentation requirements in the UAE. We can advise you on the transfer pricing threshold limit and how to prepare the relevant documentation.

Transfer Pricing Assessment

Businesses require an expert’s guidance to decide whether they need to abide by transfer pricing regulations in the UAE. It is advisable to consult with the best transfer pricing consultants in UAE to carry out an assessment of your company’s related party transactions to avoid compliance failure. Transfer pricing advisers in UAE will help you plan your company’s transfer pricing strategy.

Transfer Pricing Policies

Businesses must create an effective transfer pricing policy, which serves as a guideline on how prices would be set for related party transactions. To create a robust transfer pricing policy, you need to understand various critical aspects such as the nature of the business, Organisational structure, the market and economic circumstances, the industry where the group operates etc. Our transfer pricing services in UAE can help you create one.