Transfer Pricing Services in UAE | Expert Consultants in Dubai
Transfer pricing has become a core part of UAE Corporate Tax compliance, requiring businesses to ensure that all transactions between related parties are priced in line with the arm’s length principle as if they were conducted between independent entities in a competitive market.
With the introduction of the UAE Corporate Tax regime, transfer pricing is no longer optional; it is a mandatory framework designed to promote transparency, prevent profit shifting, and align with international OECD standards.
In today’s increasingly interconnected business environment, especially for group companies operating across multiple jurisdictions, even small inconsistencies in intercompany pricing can lead to compliance risks, tax adjustments, and penalties. This makes a structured and well-documented transfer pricing strategy essential for businesses operating in the UAE.
At Tax Consultant Dubai, a division of Farahat & Co., we provide end-to-end transfer pricing advisory and compliance support helping businesses assess related-party transactions, implement defensible pricing policies, and prepare robust documentation aligned with UAE Federal Tax Authority requirements.
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UAE Transfer Pricing Rules & Legal Framework
The UAE transfer pricing regime is governed under:
- Federal Decree-Law No. 47 of 2022 (UAE Corporate Tax Law)
- Ministerial Decision No. 97 of 2023 (Documentation Requirements)
- Federal Tax Authority (FTA) Transfer Pricing Guidelines
Key requirements include:
- All related-party transactions must follow the arm’s length principle.
- Taxable income must reflect fair market value.
- Proper documentation must be maintained for audit purposes.
Transfer pricing applies not only to multinational companies but also to UAE-based businesses with related-party transactions.
Who Must Comply with Transfer Pricing in the UAE?
Transfer pricing rules apply to:
- Multinational enterprise (MNE) groups
- UAE companies with foreign or local related parties
- Businesses dealing with shareholders, directors, or affiliates
- Free zone and mainland entities engaged in group transactions
If your business has intercompany dealings, you are required to ensure compliance with UAE TP regulations.
Transfer Pricing Documentation Requirements
Under UAE Corporate Tax rules, businesses may need to prepare:
- Master File: Provides an overview of the global group structure, business activities, and transfer pricing policies.
- Local File: Includes detailed information on UAE-specific transactions, financial data, and benchmarking analysis.
- Disclosure Form: Must be submitted as part of the Corporate Tax return for related-party transactions.
Threshold Requirement:
- AED 200 million revenue (for Master & Local File requirement)
- Applies to qualifying multinational groups and large entities
Common Transfer Pricing Risks
Businesses in the UAE face several transfer pricing risks, including:
- Tax adjustments during FTA audits
- Penalties for non-compliance
- Inadequate or missing documentation
- Incorrect benchmarking or pricing methods
- Misclassification of related-party transactions
Proper planning and documentation are essential to reduce compliance exposure.
Why Transfer Pricing Compliance is Important
Transfer pricing compliance ensures:
- Accurate taxable income reporting
- Reduced audit risk from the FTA
- Compliance with OECD and UAE tax standards
- Protection from penalties and disputes
- Strong financial transparency for group companies
Our Transfer Pricing Services in Dubai
At Tax Consultant Dubai (Farahat & Co.), we provide complete transfer pricing support, including:
- Transfer pricing advisory and planning
- Master file and local file preparation
- Benchmarking studies and analysis
- Intercompany pricing policy design
- Audit support and FTA representation
- Compliance review and risk assessment
We help businesses ensure full compliance with UAE Corporate Tax laws while optimizing group tax efficiency.
