Transfer Pricing UAE – Expert Transfer Pricing Services for Full Compliance

Transfer pricing compliance has become a critical requirement for businesses operating in the UAE, especially after the introduction of Corporate Tax and the adoption of OECD Transfer Pricing Guidelines.
As companies engage in cross-border or related-party transactions, it is now essential to ensure these transactions follow the arm’s length principle and meet the documentation standards required by the Federal Tax Authority (FTA).

At Ivy Accounting & Tax Consultant, we provide comprehensive Transfer Pricing Advisory Services in the UAE to help businesses navigate this complex regulatory area with confidence.
Our experts support you in preparing transfer pricing documentation, meeting compliance deadlines, and designing tax-efficient structures aligned with international best practices.

Understanding Transfer Pricing in the UAE

Transfer pricing refers to the prices charged between related companies when buying or selling goods, services, assets, or financing.
The UAE’s transfer pricing rules are based on the globally recognized OECD Transfer Pricing Guidelines.

Under UAE Corporate Tax Law, companies must:

• Ensure related-party transactions follow the arm’s length standard

   

• Prepare transfer pricing documentation (Local File & Master File) when required

   

• Submit a Transfer Pricing Disclosure Form with the annual tax return

   

• Maintain evidence that controlled transactions reflect real market conditions

   

As a result, transfer pricing compliance is no longer optional—it is a mandatory part of corporate tax compliance for UAE businesses.

Authoritative references:

• OECD Transfer Pricing Guidelines (oecd.org)

   

• UAE Ministry of Finance (mof.gov.ae)

   

• Federal Tax Authority (tax.gov.ae)

   

Why Transfer Pricing Matters for UAE Companies

The UAE has become a global hub for multinational companies and corporate structures.
Because related entities often transact with each other, transfer pricing regulations ensure these transactions are priced fairly and transparently.

Proper transfer pricing compliance helps businesses:

• Avoid significant penalties and audit risks

   

• Stay aligned with international tax standards

   

• Ensure transparency in cross-border transactions

   

• Protect themselves from tax disputes

   

• Improve financial governance and reporting

   

If your business has related entities, shareholders, branches, or group companies, transfer pricing affects you.

Our Transfer Pricing Services in the UAE

At Ivy Accounting & Tax Consultant, we provide full-scope transfer pricing support to simplify compliance and reduce risk.
Our services include strategic planning, documentation, disclosure preparation, and year-round advisory.

1. Transfer Pricing Documentation (Local File & Master File)

We prepare complete transfer pricing documentation that meets UAE and OECD requirements:

• Local File: Transaction-level details, benchmarking, financial analyses

   

• Master File: Group structure, global operations, intangibles, financial arrangements

   

• Benchmarking studies aligned with arm’s length principles

   

• Analysis of related-party agreements and financial results

   

Our reports are audit-ready and fully compliant with the FTA’s expectations.

2. Transfer Pricing Disclosure Form Preparation

The Transfer Pricing Disclosure Form must be submitted with the UAE corporate tax return.
We help you:

• Identify related-party transactions

   

• Classify and document controlled transactions correctly

   

• Prepare and review disclosure form entries

   

• Ensure timely submission with your tax return

   

This reduces the risk of mismatches and tax authority disputes.

3. Transfer Pricing Risk Assessment (TP Health Check)

Our team conducts a detailed transfer pricing risk review to evaluate your compliance readiness.
We assess:

• Transaction pricing

   

• Related-party agreements

   

• Documentation gaps

   

• High-risk areas

   

• Potential audit triggers

   

You receive a clear action plan to ensure compliance and reduce exposure.

4. Transfer Pricing Policy Design

We help businesses build tax-efficient transfer pricing models based on:

• Business functions and assets

   

• Risk allocation

   

• Intercompany financing

   

• Royalty and IP structures

   

• Service charges and cost allocations

   

A strong policy ensures consistency, transparency, and compliance across your group.

5. Benchmarking Studies

Benchmarking determines whether intercompany transactions are at arm’s length.
We conduct high-quality, defensible benchmarking analysis using reputable global databases.

Types of benchmarking we provide:

• Service fee benchmarking

   

• Distribution margin analysis

   

• Financing and interest rate benchmarking

   

• Royalty and intangibles valuation benchmarking

   

• Cost-plus analysis for shared service centers

   

Each study is backed by solid comparables and robust documentation.

6. Transfer Pricing for Free Zone Companies

Free zone companies must still comply with transfer pricing rules if they transact with related entities.
We help free zone businesses:

• Identify exempt vs. non-exempt income

   

• Maintain compliance with Qualifying Income rules

   

• Prepare transfer pricing documents aligned with free zone regulations

   

• Avoid losing free zone tax benefits due to non-compliance

   

Free zone entities benefit greatly from proactive transfer pricing planning.

7. Ongoing Transfer Pricing Advisory

Because regulations evolve, we provide continuous advisory to keep your business compliant.
This includes:

• Annual compliance calendar

   

• Review of new intercompany arrangements

   

• Updates based on FTA guidance

   

• Support during tax audits

   

We act as your year-round transfer pricing partner.

Who Needs Transfer Pricing Services in the UAE?

Transfer pricing applies to companies that transact with:

• Parent companies or subsidiaries

   

• Branches of the same company

   

• Companies with common ownership

   

• Group companies

   

• Free zone entities with mainland businesses

   

• Related individuals or shareholders

   

• Related distributors or service providers

   

If any of your income or expenses involve related parties, you are required to comply.

UAE Transfer Pricing Requirements – Key Compliance Checklist

To stay compliant, UAE businesses must:

• File a Transfer Pricing Disclosure Form

   

• Ensure related-party transactions follow arm’s length principles

   

• Prepare Local File and Master File (depending on thresholds)

   

• Maintain accurate documentation for all intercompany dealings

   

• Review agreements and supporting evidence

   

• Conduct periodic benchmarking studies

   

• Keep records for 7 years as required by law

   

Our team ensures you meet each requirement without stress or uncertainty.

Arm’s Length Principle Explained

The arm’s length principle requires related companies to price transactions as if they were dealing with an unrelated third party.
This ensures fairness, transparency, and prevents manipulation of profits across borders.

The UAE follows international guidelines and allows various arm’s length methods:

• Comparable Uncontrolled Price (CUP)

   

• Resale Price Method

   

• Cost-Plus Method

   

• Transactional Net Margin Method (TNMM)

   

• Profit Split Method

   

We help you select the right method based on your business model and transaction types.

Common Transfer Pricing Challenges in the UAE

Many UAE businesses face difficulties such as:

• Unclear related-party definitions

   

• Missing documentation

   

• Incorrect pricing models

   

• No benchmarking to support transactions

   

• Complex group structures

   

• Free zone compliance conflicts

   

• Inconsistency between accounting and tax positions

   

Our advisory ensures these challenges are addressed before they become risks.

Why Choose Ivy Accounting & Tax Consultant for Transfer Pricing in the UAE

Businesses across the UAE choose us because we offer:

✓ Deep Expertise in UAE Corporate Tax & OECD Guidelines

We understand both local regulations and international standards thoroughly.

✓ High-Quality, Audit-Ready Documentation

Our transfer pricing reports are built for accuracy and defensibility.

✓ Tailored Strategies for Your Business

We customize every transfer pricing model to your structure and transactions.

✓ End-to-End Compliance Support

From documentation to disclosure forms, we handle everything.

✓ Transparent, Ethical, and Reliable Advisory

We provide honest advice and ensure your structure is always compliant.

Frequently Asked Questions (FAQs)

1. What is transfer pricing in the UAE?

Transfer pricing refers to the pricing of transactions between related parties, such as subsidiaries, group companies, or branches.
The UAE requires such transactions to follow the arm’s length principle, ensuring they are priced fairly and in line with international standards.

2. Who must prepare transfer pricing documentation in the UAE?

Companies that engage in related-party transactions and meet certain thresholds must prepare a Local File and Master File.
All businesses with related-party dealings must file a Transfer Pricing Disclosure Form with their annual corporate tax return.

3. What happens if a company does not comply with UAE transfer pricing rules?

Non-compliance can lead to financial penalties, adjustments to taxable income, increased audit scrutiny, and potential disputes with the Federal Tax Authority.
Proper documentation protects businesses and ensures compliance during audits.

Ensure Full UAE Transfer Pricing Compliance with Expert Support

Ivy Accounting & Tax Consultant helps businesses protect themselves from penalties, optimize tax positions, and maintain full transfer pricing compliance in the UAE.

Contact us today to get expert transfer pricing guidance tailored to your business needs.

Let us help you stay compliant, reduce tax risks, and build a strong, defensible transfer pricing framework.