Transfer pricing in the UAE
Transactions between related parties must be priced as if the parties were independent. The rules apply to many owner-managed businesses.
Who they affect
- Companies trading with group companies in the UAE or abroad
- Payments to owners, directors and their relatives, who are connected persons
- Free zone companies transacting with mainland group entities
Requirements
- Arm's length pricing, supported by analysis
- A transfer pricing disclosure form with the corporate tax return where thresholds are met
- Master file and local file documentation for larger groups and entities above the thresholds
Payments to connected persons
Payments to owners and connected persons are deductible only to the extent they reflect market value for services actually provided.
Common questions
Does transfer pricing apply to my salary as the owner?
Yes. Payments to you as owner should reflect the market value of your work for the company.
Official sources
We check our guidance against these official sources. Always confirm current fees and rules before acting.