Transfer Pricing
With the introduction of UAE Corporate Tax, Transfer Pricing has become a critical compliance requirement for businesses engaging in related-party and connected person transactions.
The UAE has adopted internationally recognised Transfer Pricing principles aligned with OECD guidelines. This means businesses must ensure that transactions between related parties are conducted at arm’s length and are properly documented.
Transfer Pricing is no longer optional — it is a regulatory obligation with clear documentation requirements.
What Is Transfer Pricing?
Transfer Pricing applies when businesses transact with:
- Related parties (group companies, subsidiaries, parent entities)
- Connected persons (owners, directors, or related individuals)
These transactions must reflect market-based pricing and be supported by appropriate analysis and documentation.
Failure to comply may result in tax adjustments, penalties, and increased scrutiny from the authorities.
Our Transfer Pricing Services
We provide end-to-end support, including:
- Transfer Pricing applicability assessments
- Functional and risk analysis
- Benchmarking studies
- Arm’s length pricing analysis
- Master File and Local File preparation
- Transfer Pricing disclosure support
- Policy design and implementation
- FTA audit support and defence
Why Transfer Pricing Matters
Transfer Pricing impacts:
- Corporate Tax liability
- Free Zone qualifying status
- Cross-border transactions
- Group profit allocation
- Regulatory risk exposure
A weak or undocumented position can create unnecessary tax exposure and reputational risk.
Our Approach
We focus on:
- Technically robust analysis
- Practical and commercially viable pricing models
- Clear documentation aligned with UAE requirements
- Proactive risk mitigation
Our objective is to ensure that your related-party transactions are defensible, compliant, and aligned with your broader group strategy.
About
Nexbridge provides expert financial advisory, accounting, tax compliance, and business setup services to help businesses thrive in the UAE.
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Professional bookkeeping and financial reporting for businesses of all sizes.
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Expert tax planning and compliance services to keep your business risk-free.
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Assistance with company registration, licensing, and setup in the UAE.