Transfer pricing

With the introduction of Corporate Tax in the UAE, Transfer Pricing (TP) has become a critical area of compliance for businesses engaged in transactions with Related Parties and Connected Persons. Transfer Pricing refers to the pricing of transactions between associated enterprises, which must be conducted at Arm’s Length—meaning the price must be consistent with what unrelated parties would agree upon in similar circumstances.

The UAE’s transfer pricing framework is aligned with the OECD Transfer Pricing Guidelines, ensuring that multinational groups operating in or through the UAE comply with internationally recognized principles. This alignment strengthens the UAE’s position as a trusted global business hub, while also preventing tax base erosion and profit shifting.

At Evas, we help businesses understand and comply with the comprehensive Transfer Pricing requirements under the UAE Corporate Tax Law, which include:

• Transfer Pricing Disclosure Form: Mandatory for all taxable persons with transactions involving Related Parties or Connected Persons. This form must be submitted along with the annual Corporate Tax return, detailing the nature and value of such transactions.
• Local File: Required for businesses that cross certain revenue or transaction thresholds. This document contains detailed information about the entity’s domestic related-party transactions, the pricing policies applied, and the supporting economic analysis.
• Master File: Applicable to members of large multinational groups, this file provides a high-level overview of the global business operations, transfer pricing policies, and value creation across the group.

Transfer Pricing compliance is not just a regulatory requirement—it also has significant tax and reputational implications. Non-compliance can lead to adjustments in taxable income, penalties, and increased scrutiny from the Federal Tax Authority (FTA).

At Evas, we assist you with:

• Identifying and documenting Related Party transactions
• Determining the appropriate Arm’s Length pricing
• Preparing and maintaining Local and Master Files in line with OECD standards
• Filing the Transfer Pricing Disclosure Form accurately and on time
• Strategic advice to manage transfer pricing risks and opportunities

With our expertise, your business remains compliant, transparent, and aligned with global best practices—ensuring peace of mind in this increasingly regulated tax environment.

Our Team