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Transfer Pricing Assessment in UAE

Ensure compliance with UAE's Transfer Pricing regulations and optimize your inter-company transactions with our expert assessment services.

Book Assessment

Overview

With the implementation of UAE Corporate Tax (Federal Decree-Law No. 47 of 2022), businesses engaging in related-party transactions must comply with Transfer Pricing (TP) regulations. These rules ensure transactions between related entities follow the arm's length principle, preventing profit shifting and ensuring fair taxation.

A Transfer Pricing Assessment evaluates your inter-company transactions, ensuring compliance with UAE tax laws while minimizing risks and penalties.

Mandatory Requirements

Businesses in the UAE must comply with Transfer Pricing regulations if they:

  • Engage in related-party transactions (subsidiaries, parent companies, or entities under common ownership)
  • Meet FTA documentation thresholds for transfer pricing
  • Prepare and maintain TP documentation (Local File, Master File, and CbCR if applicable)
  • Follow the arm's length principle for all inter-company transactions

Assessment Process

Step 1

Identify all related-party transactions subject to TP rules

Step 2

Analyze pricing alignment with market standards

Step 3

Conduct benchmarking against industry standards

Step 4

Prepare comprehensive TP documentation

Step 5

Submit required reports to FTA

Step 6

Implement compliance improvements

Key Deadlines

  • Corporate Tax Return Filing: Within 9 months of financial year-end
  • CbCR Notification: As per prescribed FTA timeframe
  • Documentation Submission: Upon FTA request

Required Documents

  • Corporate structure & ownership details
  • Financial statements of entity & group
  • List of related-party transactions
  • Transfer pricing policy & agreements
  • Functional & economic analysis reports
  • Benchmarking study data
  • Local File, Master File & CbCR (if applicable)

Frequently Asked Questions

Who needs to comply with UAE Transfer Pricing rules?

Any UAE business conducting transactions with related parties or connected persons must comply with TP regulations.

What is the arm's length principle?

It means that related-party transactions must be priced as if they were conducted between independent entities in the open market.

What are the penalties for non-compliance?

Non-compliance may result in FTA audits, penalties, and tax adjustments that could increase corporate tax liabilities.

How We Can Help

  • Comprehensive TP Analysis: Assess related-party transactions and pricing structures
  • Benchmarking & Economic Study: Compare transaction pricing with industry standards
  • Documentation Preparation: Local File, Master File, and CbCR reports as per FTA guidelines
  • FTA Compliance: Ensure full compliance and mitigate penalties
  • Strategic Advisory: Implement tax-efficient transfer pricing policies

Ensure Compliance Today!

Stay ahead of UAE Transfer Pricing regulations with our expert assessment services. Contact us for a comprehensive review of your related-party transactions.

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