Transfer pricing - Key consideration for UAE business
Transfer pricing (TP) regime in the United Arab Emirates (UAE) aligned to the OECD guidelines with a solid framework of compliance. A separate detailed UAE Transfer pricing Guide published in October 2023.
Read here: UAE Transfer pricing Guide
Key consideration for business
- Review the transactions between related parties and connected persons within the UAE mainland, Free Zones, or foreign tax jurisdiction.
- Analyse, whether the transactions as stated above entered at arm’s length price i.e. at market price justified with appropriate risk assessment for the Company/Group.
- In case of no TP analysis/TP policy in place, initiate an exercise to determine pricing policy comply with the arm’s length principle.
Assess, how Transfer Pricing risk assessment, intercompany analysis, compliance (Transfer pricing disclosure, Local file, Master file and Country-by-Country report, subject to conditions) serves an objective, uncovering inappropriate results to the adequate outcome and making it essential before the first taxable period ends (i.e. FY2024) for the UAE businesses.
Get in touch for a brief discussion and guidance about Transfer pricing services to see the influence on your business. For a deeper conversation / assistance, feel free to schedule a meeting with Tax services team in the UAE office.
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Yatin Mehra Director - Transfer pricing
Transfer pricing
A global view on a business-critical, fast-evolving issue
UAE Corporate Tax & Transfer pricing update 2024
The Ministry of Finance (MoF) administered by the Federal Tax Authority (FTA) announced the Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses profits along with Transfer Pricing (TP) regime in the UAE for the tax period ending 2024.
Corporate tax in the UAE
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