Transfer Pricing Services UAE
If your UAE business transacts with related parties group companies, subsidiaries, shareholders, or connected persons UAE transfer pricing rules apply to you. Under UAE corporate tax law, every intercompany transaction must be priced on arm’s length terms and properly documented. Getting this wrong does not just create a tax risk. It can trigger an FTA audit and result in adjustments, penalties, and reputational damage.
Our transfer pricing consultants help UAE businesses get their intercompany pricing right from the start with the documentation, policies, and disclosures the FTA requires.
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Does Transfer Pricing Apply to Your Business?
Transfer pricing applies to any UAE business that has transactions with related parties. This includes:
- UAE companies that are part of a multinational group with entities in other countries
- Free zone companies transacting with related mainland entities or overseas group companies
- UAE businesses with foreign shareholders that pay management fees, royalties, or interest
- Companies in a group that share services, intellectual property, or provide intercompany loans
- Businesses with related party transactions above the FTA disclosure threshold
Many UAE business owners assume transfer pricing only applies to large multinationals. That is not the case. If you have intercompany transactions of any kind, transfer pricing rules apply and the FTA expects documentation.
What Happens If Transfer Pricing Is Wrong
- The FTA can adjust your taxable income upward if intercompany prices are not arm’s length increasing your tax liability immediately
- Penalties apply for failure to maintain required transfer pricing documentation
- A transfer pricing adjustment in one entity can trigger corresponding adjustments across your entire group
- The FTA is actively reviewing intercompany transactions as part of corporate tax compliance checks
- Poorly documented related party transactions are one of the most common triggers for an FTA audit
What Our Transfer Pricing Service Covers
- Transfer Pricing Policy Design
- Transfer Pricing Documentation
- Country-by-Country Reporting (CbCR)
- Related Party Disclosure FTA Filing
- Intercompany Agreements
- Benchmarking Studies
- FTA Audit Support
Hear What Our Clients Have to Say
Testimonials
Partnering with Entegrix has really been a game-changer for our business. The team took time to understand the specific needs of the business and developed services that were tailored uniquely to our company’s situation. This feature has been helpful in financial planning and has really allowed for a clear picture of my financial status. The ability to integrate their service fluidly into our operations saved us so much time, but now our reports also come out a lot more accurate than before.
John D
Business Owner
The expertise and professionalism demonstrated by Entegrix give us the confidence that our financial records are in good hands. Their team introduced us to advanced accounting software that enabled us to get real-time access to our financial data, hence giving us more transparency and efficiency. The seamless integration of their services into our daily operations has resulted in considerable time savings and improved accuracy in our financial reporting. The commitment of Entegrix to understand our business and tailor their services accordingly has been instrumental in our financial planning.
Jessy P
Business Owner
Frequently Asked Question
Do UAE free zone companies need to comply with transfer pricing rules?
Yes. Transfer pricing rules apply to all UAE businesses within the scope of UAE corporate tax including free zone companies, even those claiming the Qualifying Free Zone Person 0% rate. Any intercompany transaction must be at arm’s length and properly documented.
What is the arm's length standard?
The arm’s length standard requires that transactions between related parties are priced as if they were between independent, unrelated parties dealing at market rates. If your group company charges a fee to your UAE entity, that fee must reflect what an independent third party would charge for the same service in the same circumstances.
We are a small business. Do we still need transfer pricing documentation?
If your related party transactions are below the disclosure thresholds, you may not need to prepare a full Master File or Local File. However, you are still required to apply the arm’s length standard and be able to demonstrate that your intercompany pricing is appropriate if the FTA asks. We assess your specific situation and advise on the exact level of documentation you need.
What happens if the FTA adjusts our transfer prices?
If the FTA determines that your intercompany prices are not at arm’s length, they can increase your taxable income to reflect what the price should have been increasing your tax liability. Penalties can also apply for failure to maintain proper documentation. Proper transfer pricing documentation is your first and most important line of defence.
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Book a free consultation. We will review your related party transactions, tell you exactly what documentation you need, and give you a clear, fixed price to get it done properly.