Transfer Pricing Advisory

We help businesses manage UAE Transfer Pricing compliance with accurate reporting and strategic tax insights.

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What is Transfer Pricing Advisory in the UAE?

Transfer Pricing Advisory in the UAE refers to professional guidance provided to businesses on setting and managing prices for transactions between related entities, including subsidiaries, branches, and affiliates, in compliance with the UAE Corporate Tax Law. It ensures that companies comply with Federal Tax Authority (FTA) regulations, while maintaining accurate documentation of intercompany transactions, pricing methods, and agreements. Businesses are assessed to confirm that transfer prices are at arm’s length, properly documented, and reported, meeting all statutory obligations. The transfer pricing framework is designed to promote transparency, accountability, and regulatory compliance, helping businesses identify pricing risks, mitigate potential disputes, and make informed decisions that support financial efficiency and sustainable growth.

What Types of Transactions Fall Under Transfer Pricing Regulations?

Under UAE transfer pricing regulations, transactions between related entities that may affect taxable profits fall under scrutiny. These typically include:

Intercompany Sales of Goods: Sale or purchase of products between parent companies, subsidiaries, or affiliates.
Intercompany Services: Provision of management, administrative, technical, or other services between related parties.
Intangible Asset Transfers: Transactions involving intellectual property, trademarks, patents, or brand rights.
Intercompany Loans and Financing: Lending or borrowing arrangements between related entities, including interest charges.
Royalty and License Agreements: Payments for the use of intellectual property, software, or other licensed assets.
Cost Sharing Arrangements: Agreements to share development, marketing, or operational costs among related entities.

Professional transfer pricing advisory ensures that all these transactions are priced at arm’s length, properly documented, and compliant with UAE Corporate Tax Law and FTA guidelines.

What Documentation is Required to Comply with the UAE Transfer Pricing Rules?

Document Type	Purpose
Transfer Pricing Policy	Defines the company’s approach to pricing intercompany transactions at arm’s length.
Intercompany Agreements	Contracts for sales, services, loans, royalties, or cost-sharing arrangements.
Benchmarking Study	Analysis comparing intercompany prices to similar transactions between unrelated parties.
Financial Statements	Supports reporting of intercompany transactions and pricing.
Functional and Economic Analysis	Describes the functions performed, assets used, and risks assumed by related entities.
Documentation of Intangibles	Details ownership, valuation, and use of intellectual property and other intangibles.
Supporting Calculations	Methods and computations used to determine arm’s length pricing.
Compliance Declaration / Reporting	Statements submitted to the Federal Tax Authority (FTA) confirming adherence to TP rules.
Correspondence with Tax Authorities	Any communications with FTA related to transfer pricing adjustments or audits.

What are the Penalties for Non-Compliance with Transfer Pricing Regulations in the UAE?

In the UAE, non-compliance with transfer pricing regulations can lead to significant penalties and risks under the Corporate Tax Law. Key consequences include:

Monetary Fines: Companies may face fines for failing to prepare, maintain, or submit required transfer pricing documentation, or for inaccurate reporting of intercompany transactions.
Adjustments to Taxable Income: The FTA can adjust taxable profits if transfer prices are not at arm’s length, potentially increasing the company’s tax liability.
Interest on Underpaid Tax: Any additional tax due as a result of transfer pricing adjustments may accrue interest.
Audit and Investigation Risk: Non-compliance can trigger detailed audits or investigations by the FTA, increasing administrative burden and potential reputational risk.
Cross-Border Disputes: Failure to comply may lead to double taxation issues in other jurisdictions, especially where Double Taxation Avoidance Agreements (DTAAs) apply.

Professional transfer pricing advisory helps businesses avoid these penalties by ensuring transactions are properly documented, priced at arm’s length, and fully compliant with UAE regulations.

Services Offered

UAE Direct Tax Services We Offer

We assist businesses with UAE direct tax, ensuring accurate income verification and full compliance with FTA and IFRS requirements.

Double Taxation Advisory

Foreign Tax Credit (FTC) Advisory

Permanent Establishment (PE) Advisor

Tax Residency Advisory

Transfer Pricing Advisory

Withholding Tax (WHT) Advisory

Digital Tax Solutions

Why Choose RBTax?

UAE Double Taxation Advisory with RadiantBiz Tax

At RadiantBiz Tax, we provide expert guidance through every step of managing Transfer Pricing (TP) compliance for businesses across all UAE jurisdictions. Our flexible approach allows us to work with clients through in-person consultations, virtual meetings, emails, and messaging, ensuring thorough verification of intercompany transactions and full compliance with UAE Corporate Tax Law and Federal Tax Authority (FTA) regulations.

Initial Consultation and TP Review

Assessing your business structure, intercompany transactions, and reporting requirements under UAE Corporate Tax Law and applicable international guidelines

Compliance Check

Reviewing documentation such as passports, visas, tenancy agreements, corporate records, and financial statements to ensure full adherence to UAE residency requirements and statutory obligations.

Build TP Strategy

Designing a tailored transfer pricing plan, including arm’s length pricing assessment, risk evaluation, reporting timelines, and review of internal financial controls.

Execute and Report

Managing the implementation of your TP strategy with precision, preparing documentation, highlighting key findings, and providing ongoing support to ensure your business remains fully compliant with UAE and international transfer pricing regulations.

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Meet Our Team of Certified Tax Consultants

Our success stems from a team of certified professionals holding qualifications such as CPA, CMA, ACCA, CIA, CTA, and UAE FTA Tax Agent licenses, bringing extensive UAE experience and recognized expertise to every client engagement. Meet the Tax Guides