Transfer pricing services in Dubai
Transfer pricing is a critical part of tax compliance and financial management. ACL Tax Consultants helps businesses in Dubai mitigate risks, optimise tax liabilities and comply with UAE transfer pricing regulations.
Transfer pricing in Dubai, UAE
Transfer pricing is the setting of prices for transactions between related entities. With the UAE's evolving tax landscape and increased focus on transparency, your policies must be robust, defensible and aligned with local and international regulations.
If your business transacts with related parties or connected persons, those transactions must be at arm's length and you must be able to show it. We prepare the analysis and the documentation.
- Compliance with UAE regulations based on the OECD Transfer Pricing Guidelines
- Transparency, with thorough documentation of related party transactions
- Tax optimisation, by allocating profits appropriately among related entities
- Avoiding double taxation of profits across jurisdictions
- Risk mitigation against tax audits and disputes
- Maintaining the arm's length principle
What we prepare
Comprehensive transfer pricing services, tailored to your industry, size and complexity.
Identifying every related party and connected person, and the transactions between them.
Who does what, who owns what and who bears which risks.
Benchmarking and economic analysis, using recognised databases and methods, to support the pricing applied.
Comprehensive documentation, including master files, local files and country-by-country reports where they apply.
Thorough risk assessments and pricing policies that are defensible and workable in practice.
Support if a transfer pricing position is questioned, including during audits and discussions with the tax authorities.
Common transfer pricing methods
The appropriate method depends on the nature of the transaction and the comparable data available.
Why choose ACL Tax Consultants for transfer pricing in Dubai?
Experienced professionals with in-depth knowledge of UAE transfer pricing regulations and the OECD guidelines.
Solutions tailored to businesses in Dubai, considering their industry, size and complexity.
We help you prepare the documentation that supports your compliance with UAE regulations.
Thorough risk assessments and proactive strategies to reduce the risk of audits and disputes.
Robust benchmarking and economic analysis to support your transfer pricing policies.
Expert support in resolving disputes with tax authorities, including during audits.
How we approach transfer pricing
We identify your related parties and connected persons, and the transactions between them.
We work out who does what, who owns what and who bears which risks.
We compare your pricing with comparable data, using the method that suits the transaction.
We prepare the file that supports your position, and review your policies as your business changes.
Why outsource transfer pricing in Dubai?
Frequently asked questions
Quick answers to questions you may have.
What are the key transfer pricing regulations in the UAE?
The UAE's rules are based on the OECD Transfer Pricing Guidelines. They require arm's length pricing for related party transactions, along with documentation and reporting that depend on your circumstances. We confirm which apply to you.
What is the arm's length principle?
Related parties should transact on the terms that independent parties would have agreed in comparable circumstances. This helps allocate profits fairly between related entities.
What counts as a related party?
Broadly, entities and individuals connected through ownership or control. The definition is set out in the corporate tax law and is wider than most people expect.
What is transfer pricing documentation and why is it important?
It includes master files, local files and country-by-country reports. These provide evidence that related party transactions comply with the arm's length principle, and help reduce the risk of tax audits.
When should documentation be prepared?
At the time of the transaction, not reconstructed afterwards when a question arrives.
What are the common transfer pricing methods?
The comparable uncontrolled price (CUP) method, resale price method, cost plus method, profit split method and transactional net margin method (TNMM). The right one depends on the transaction and the available data.
How can I minimise the risk of transfer pricing audits in Dubai?
Keep robust documentation, carry out thorough benchmarking and maintain consistent policies. Working with experienced transfer pricing professionals also helps.
What happens if I don't comply with transfer pricing regulations?
The FTA can adjust your taxable income, which increases the tax due and may attract penalties.
How often should I review my transfer pricing policies?
Regularly, especially when your operations, industry conditions or tax regulations change. We recommend an annual review.
What are the benefits of a transfer pricing risk assessment?
It helps you identify potential areas of non-compliance, develop proactive strategies and improve overall financial management.
How can I align my policies with my business strategy?
Policies should reflect your overall strategy and the value each related entity creates, drawing on functional, risk and economic analysis.
What should e-commerce businesses in Dubai consider?
The challenges of digital transactions, including the valuation of intangible assets, the allocation of profits from online sales and the determination of permanent establishment.
What our Dubai clients say
About ACL Tax Consultants
Since 2017, ACL Tax Consultants has supported more than 500 businesses across the UAE with accounting, audit, VAT and corporate tax services — from one team, at fixed fees agreed upfront.
Transacting with related parties?
Contact ACL today for a free consultation. Tell us about the transactions and we will tell you what documentation you need, and whether your current pricing supports it.
Choose the right transfer pricing support in Dubai.