Transfer Pricing Advisory Services UAE
Every Transaction Between Your Related Parties Must Stand Up to the Arm’s Length Test. The FTA Will Check.
Transfer pricing rules under UAE Corporate Tax law require that transactions between related parties and connected persons are conducted as if they were between independent parties. If your prices, fees, or charges between group entities do not reflect arm’s length conditions, the FTA can adjust your taxable income accordingly. Jazaa helps you design transfer pricing policies, assess risk, and ensure your intercompany arrangements hold up under scrutiny.
Why Transfer Pricing Matters in the UAE
The FTA Has the Power to Adjust
If the FTA determines that your intercompany transactions are not at arm’s length, it can adjust the prices used in your tax return. This adjustment increases your taxable income and the tax you owe. It can also trigger penalties.
Free Zone and Mainland Interaction Is the Primary Risk Area
Most transfer pricing issues in the UAE arise between free zone entities paying the qualifying rate and mainland entities paying the standard rate. If a mainland company pays above-market fees to its free zone affiliate, the effect is shifting income from a taxed entity to a preferentially taxed one. This pattern is a known area of transfer pricing risk under the law.
QFZP Status Depends on It
For Qualifying Free Zone Persons, compliance with transfer pricing rules is a condition of maintaining QFZP status. Non-compliance can result in loss of the qualifying rate.
Why Multi-Entity Businesses Choose Jazaa
Arm's length pricing reviewed for all intercompany transactions
Transfer pricing policies designed to match your business model
Risk assessed before the FTA raises questions
How Jazaa Delivers Transfer Pricing Advisory
- 1
Transaction Mapping
We work to identify the transactions between your related parties, including service fees, management charges, royalties, loans, and goods transfers.
- 2
Arm's Length Assessment
For each transaction, we assess whether the pricing reflects what independent parties would agree to under comparable conditions.
- 3
Policy Design
We design a transfer pricing policy that covers your intercompany transactions with pricing methodologies that satisfy the arm's length principle.
- 4
Risk Prioritization
We rank your transactions by risk level so you know which ones are most likely to attract FTA attention and where to focus documentation efforts.
Everything Included in Your Transfer Pricing Advisory
- Related party and connected person identification
- Intercompany transaction mapping
- Arm's length assessment for each transaction type
- Transfer pricing policy design
- Pricing methodology selection and justification
- Risk assessment and prioritization matrix
- Annual review of pricing against actual transactions
- Support for FTA queries on transfer pricing positions
Common Questions
About Transfer Pricing
The UAE follows OECD guidelines. Accepted methods include comparable uncontrolled price, resale price, cost plus, transactional net margin, and profit split. Jazaa selects the most appropriate method for each transaction type.
If you have transactions with related parties, transfer pricing rules apply regardless of business size. The documentation burden may be lighter, but the arm's length principle still governs.
Related parties include entities under common ownership or control, individuals who control the business and their relatives, and certain connected persons as defined in the legislation.
Yes, if the FTA determines that your actual transactions do not follow your stated policy, or if the policy itself does not produce arm's length outcomes.
Annually at minimum. Prices that were arm's length last year may not be arm's length this year if market conditions, business models, or cost structures have changed.
Get In Touch
contact@jazaa.com
LOCATION
Dubai, UAE with clients across all Emirates
Meeting
Book a consultation to discuss your specific financial needs
