Intercompany Transaction Advisory Services UAE
Your Intercompany Transactions Tell the FTA Exactly How Your Group Manages Its Tax Position. Make Sure They Tell the Right Story.
When one entity in your group charges another for services, loans money, shares costs, or transfers goods, the FTA pays attention. Intercompany transactions are the mechanism through which income can be shifted between entities, and the Corporate Tax law specifically targets arrangements that do not reflect genuine, arm’s length dealings. Jazaa helps you structure, price, and document intercompany transactions that are both commercially sound and tax compliant.
What Makes Intercompany Transactions Different From Related Party Transactions
Related party transactions are the broader category, covering all dealings between connected persons. Intercompany transactions are a specific subset involving entities within the same corporate group. The distinction matters because intercompany transactions tend to be higher volume, more systematic, and more likely to attract audit attention.
The Most Scrutinized Intercompany Arrangements
Service fee agreements between a parent and its subsidiaries. Cost-sharing arrangements for shared platforms or infrastructure. Intercompany loans and the interest rates applied. Transfer of intellectual property or brand usage rights. Management charges from a holding company. Each requires a written agreement, arm’s length pricing, and supporting documentation.
Why Group Companies Choose Jazaa
Intercompany agreements reviewed and strengthened
Pricing tested against arm's length benchmarks
Documentation maintained for FTA review readiness
How Jazaa Strengthens Your Intercompany Position
- 1
Mapping Your Group Structure and Flows
We document every entity, the transactions between them, and the flow of funds and services across the group.
- 2
Agreement Review
We review existing intercompany agreements for completeness, arm's length terms, and alignment with actual practice.
- 3
Pricing Validation
We test the pricing of each transaction type against comparable benchmarks to confirm arm's length compliance.
- 4
Gap Remediation
Where agreements are missing, terms are non-commercial, or documentation is incomplete, we prepare what is needed.
Everything Included in Your Intercompany Advisory
- Group structure and transaction flow mapping
- Intercompany agreement review and drafting support
- Arm's length pricing validation for each transaction type
- Documentation package for each material transaction
- Annual review and update of intercompany arrangements
- FTA audit readiness assessment for intercompany positions
- Guidance on new intercompany arrangements as your group evolves
Common Questions About
Intercompany Transactions
Yes. Verbal or informal arrangements are difficult to defend during an FTA review. Written agreements that specify the services, pricing, and terms are expected.
We formalize them. This means drafting agreements that reflect what actually happens, pricing them at arm's length, and creating the documentation trail that should have existed from the start.
Through your CT return disclosures, transfer pricing documentation, financial statement review, and comparison with industry benchmarks. Inconsistencies between what you report and what the data suggests will trigger further review.
Yes. Non-compliance with arm's length pricing on intercompany transactions can disqualify your QFZP status entirely.
We prepare the commercial and financial terms. For the legal form of the agreement, we work with your legal team or recommend a partner.
Get In Touch
contact@jazaa.com
LOCATION
Dubai, UAE with clients across all Emirates
Meeting
Book a consultation to discuss your specific financial needs
