Related Party Transaction Advisory Services UAE
Related Party Transactions Are Where the FTA Looks First. Make Sure Yours Hold Up.
Transactions between your business and its related parties receive the closest scrutiny under UAE Corporate Tax law. Management fees, service charges, loans, cost allocations, and goods transfers between entities you own or control must all reflect what independent parties would agree to. Jazaa reviews your related party dealings, identifies risks, and works to get each transaction properly structured and documented.
Why Related Party Transactions Create Tax Risk
The tax law allows the FTA to adjust income if related party transactions are not at arm’s length. The law gives the FTA the authority to make adjustments where it determines that arm’s length conditions were not met.
Common Related Party Transaction Types
Management fees charged between group companies. Service agreements between a holding entity and operating subsidiaries. Loans between related entities with non-market interest rates. Cost-sharing arrangements that do not reflect actual benefits received. Rental of property or equipment between connected parties. Each of these must be priced as if the parties were unrelated.
Why Businesses With Related Parties Choose Jazaa
Every transaction between connected entities reviewed for arm's length compliance
Risk areas flagged before they attract FTA attention
Documentation prepared to support each transaction
How Jazaa Reviews and Strengthens Your Position
- 1
Identifying All Related Parties
We map every related party and connected person in your structure, including indirect relationships and beneficial ownership connections.
- 2
Cataloging All Transactions
We work to identify transactions between related parties, including those that may not appear obvious, such as informal cost allocations or use of shared resources.
- 3
Pricing Assessment
For each transaction, we assess whether the pricing reflects arm's length conditions and flag any that do not.
- 4
Restructuring Recommendations
Where pricing or terms need adjustment, we recommend specific changes and help implement them.
Everything Included in Your Related Party Advisory
- Related party and connected person mapping
- Full transaction catalog across all related entities
- Arm's length assessment for each transaction type
- Risk ranking by transaction based on FTA scrutiny likelihood
- Restructuring recommendations where adjustments are needed
- Supporting documentation for each transaction
- Annual review as transactions and relationships evolve
Common Questions About
Related Party Transactions
Entities under common ownership or control, individuals who control the entity and their relatives, and certain connected persons as defined in the legislation. The definition is broad and covers both direct and indirect relationships.
No. Related party transactions are normal in business. The issue is whether they are priced at arm's length. Properly documented, fairly priced transactions between related parties are fully compliant.
Cross-border related party transactions still fall under UAE transfer pricing rules. The arm's length principle applies regardless of where the counterparty is located.
Yes. If your business shares office space, staff, technology, or other resources with a related entity without a formal agreement and fair charge, the FTA may view this as an untaxed benefit.
Annually at minimum, and whenever there is a material change in the relationship, transaction volume, or pricing terms.
Get In Touch
contact@jazaa.com
LOCATION
Dubai, UAE with clients across all Emirates
Meeting
Book a consultation to discuss your specific financial needs
