Al Abbas Building 2, Bur Dubai, UAE Mon - Fri: 9.00 am - 6.00 pm
info@hfmgconsulting.com +971 508698220
TRANSFER PRICING SERVICES

Compliant Transfer Pricing for Related-Party Transactions

Establish arm's length pricing policies, prepare defensible documentation, and ensure full compliance with UAE Corporate Tax and OECD guidelines.

OECD Compliant
UAE Corporate Tax Ready

Arm's Length Pricing

Ensure transparent, defensible pricing for intercompany transactions

Understanding Transfer Pricing

What Is Transfer Pricing?

Transfer pricing governs how transactions between related entities are priced to ensure they reflect an arm's length principle — meaning prices are consistent with those charged between independent parties.

In the UAE, transfer pricing regulations apply to:
  • Transactions between related parties
  • Connected persons under Corporate Tax Law
  • Cross-border and domestic intercompany transactions

Proper transfer pricing ensures transparency, fairness, and tax compliance.

Critical for Compliance

Why Transfer Pricing Matters in the UAE

With the introduction of UAE Corporate Tax, transfer pricing compliance has become a legal obligation for many businesses. Incorrect or undocumented pricing can lead to tax adjustments, penalties, and disputes.

Legal Obligation

Comply with UAE Corporate Tax and OECD guidelines as a legal requirement

Risk Management

Reduce transfer pricing risk and disputes with defensible documentation

Arm's Length Pricing

Ensure fair pricing for related-party transactions that stands up to scrutiny

Defensible Documentation

Prepare comprehensive transfer pricing documentation for audit readiness

Audit Support

Support audits and regulatory reviews with proper documentation and analysis

Transparency & Governance

Improve internal transparency and strengthen corporate governance practices

Transfer pricing is both a compliance requirement and a risk management tool.

Applicability

Who Needs Transfer Pricing Services?

Transfer pricing applies to businesses operating within group structures or having related-party transactions.

Businesses That Apply

  • Have related-party transactions
  • Operate within group structures
  • Conduct cross-border transactions
  • Have transactions with connected persons
  • Are subject to UAE Corporate Tax requirements

Both multinational groups and UAE-based entities may be impacted.

Our Expertise

Transfer Pricing Services We Offer

Transfer Pricing Policy Development

Design and implement arm's length pricing policies aligned with UAE regulations and OECD standards.

Policy Design
Transfer Pricing Documentation

Prepare required documentation such as local file, master file, and related-party transaction analysis.

Documentation
Functional & Economic Analysis

Analyse functions, assets, and risks (FAR analysis) to support pricing methodologies.

FAR Analysis
Benchmarking & Pricing Studies

Conduct benchmarking studies to determine arm's length pricing ranges for your transactions.

Benchmarking
Compliance & Audit Support

Assist during tax audits, assessments, and regulatory reviews related to transfer pricing.

Audit Support
Our Methodology

How We Support Transfer Pricing Reporting

1
Transaction & Risk Assessment

Identify related-party transactions and assess transfer pricing exposure to understand your compliance obligations.

2
Policy & Methodology Selection

Determine appropriate pricing methods based on transaction type, business model, and OECD guidelines.

3
Documentation & Analysis

Prepare compliant transfer pricing documentation supported by rigorous economic analysis and benchmarking.

4
Implementation & Monitoring

Support implementation of pricing policies and ensure ongoing compliance with regulatory requirements.

5
Regulatory Support

Provide clarification and support during audits or inquiries by tax authorities to defend your pricing positions.

Value Delivered

Benefits of Professional Transfer Pricing Services

UAE Corporate Tax Compliance

Ensure full compliance with UAE Corporate Tax regulations and OECD guidelines

Reduced Tax Risks

Minimize transfer pricing and tax risks through defensible policies and documentation

Defensible Documentation

Prepare robust documentation and pricing policies that withstand regulatory scrutiny

Improved Audit Readiness

Be fully prepared for tax audits with comprehensive documentation and analysis

Enhanced Transparency

Strengthen transparency and governance across related-party transactions

Transaction Confidence

Gain confidence in related-party transactions with expert-backed pricing policies

Challenges We Address

Problems We Help Solve

Unclear or Undocumented Related-Party Pricing

Lack of documented pricing policies for intercompany transactions

Exposure to Transfer Pricing Adjustments

Risk of tax authority adjustments due to non-compliant pricing

Lack of Benchmarking or Economic Analysis

Absence of economic justification for pricing decisions

Compliance Gaps Under Corporate Tax Law

Non-compliance with UAE Corporate Tax transfer pricing requirements

Audit and Regulatory Challenges

Difficulty defending pricing positions during tax audits

Inconsistent Group Pricing Practices

Lack of standardized pricing policies across group entities

Common Questions

Transfer Pricing FAQ

Transfer pricing refers to the pricing of transactions between related entities to ensure they are conducted at arm's length — meaning the prices reflect what independent parties would charge in comparable circumstances.

Yes. Transfer pricing rules apply under UAE Corporate Tax law for related-party and connected-person transactions. Businesses must ensure their intercompany pricing complies with the arm's length principle and maintain proper documentation.

Documentation may include a transfer pricing policy, local file, master file (where applicable), and benchmarking analysis, depending on the business structure and transaction volume. The documentation should support the arm's length nature of related-party transactions.

Yes. Transfer pricing applies to both cross-border and domestic related-party transactions. Even if all entities are based in the UAE, if they are related parties or connected persons, transfer pricing rules apply.

Proper pricing and documentation reduce the risk of tax adjustments, penalties, and disputes during audits. By establishing defensible pricing policies and maintaining comprehensive documentation, businesses can demonstrate compliance and minimize the likelihood of regulatory challenges.

Get Started with Transfer Pricing Support

Ensure compliance. Manage risk. Defend your pricing.