Under UAE Corporate Tax, transactions and arrangements between related parties and connected persons must meet the arm’s-length principle they must be priced as if the parties were independent. This affects intra-group sales, services, financing, royalties, and payments to owners and their relatives.
Businesses must be able to show that their related-party dealings are at arm’s length, and larger businesses must maintain formal documentation. Falling short can lead to FTA adjustments, additional tax, and penalties. We help you set, document, and defend compliant transfer pricing positions.
All related-party transactions must follow the arm’s-length principle, and a transfer pricing disclosure form is filed with the Corporate Tax return where the relevant thresholds are met. A master file and local file are generally required where the business is part of a multinational group with consolidated revenue of AED 3.15 billion or more, or where the business’s own revenue is AED 200 million or more.
Our tax and corporate teams work together on structure, agreements, and documentation, so your transfer pricing is consistent with how your group is actually set up and run.
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