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Transfer Pricing in the UAE – A Growing Compliance Requirement

 Transfer Pricing (TP) in the UAE has evolved under Corporate Tax law. Businesses with related-party transactions must now apply the arm’s length principle and maintain thorough documentation.

Applicability:

  • Transactions with related parties and connected persons

  • Revenue exceeding AED 50 million

  • Being part of Multination Enterprise (MNE) that derives more than EUR 750M on consolidated group revenues.

  • Free Zone entities claiming 0% CT or Exempt Entities or preferential tax rate.


Required Documentation:

  • TP Local File

  • TP Master File

  • Disclosure Form filed with CT return


Legal Reference:

  • Federal Decree-Law No. 47 of 2022, Articles 34, 35 36 & 55

  • Ministerial Decision No. 97 of 2023


Key Challenges:

  • Identify the applicability

  • Transfer pricing expertise and policies

  • Selecting appropriate pricing methods

  • Ensuring data integrity and benchmarking fulfilment

  • Preparing supporting documentation on-time


Why Engage an Accredited Certified Transfer Pricing  Agent?


A TP expert ensures your related-party transactions meet arm’s length standards, prepares compliant files, documentation, and helps avoid disputes or penalties during audits.


Conclusion:


Proper TP planning is essential for tax compliance. Adherence to TP guidelines, mitigates future risks.

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