Transfer Pricing Advisory Services in UAE
The UAE Ministry of Finance made a historic statement, stating that a new federal corporate tax regime will be adopted in the UAE beginning on or after June 1, 2023. The UAE will implement a standard corporate tax rate of 9%, with the tax structure being intended to absorb worldwide best practices and reduce business regulatory burdens.
Transfer pricing is the process of analysing related party/connected persons transactions and verifying that they are valued in accordance with the arm’s length principle or the price that a third party would spend for about the same deal in identical conditions. The Transfer Pricing Rules would apply in the UAE once the corporate tax is implemented. The transfer pricing regulations and other related requirements would apply to all businesses. These transfer pricing laws would be required and could apply to both regional and abroad activities, resulting in both domestic and international transfer pricing.
Let’s have a quick look at the services we offer.
Structuring Transfer Pricing Policy
In the Middle East, transfer pricing and its internal agreed-upon arm’s length concept are becoming more common. When interacting with the federal tax authorities, the corporate tax, accompanied by the correct transfer pricing strategy and paperwork, will be crucial. As a result, it is increasingly critical for businesses to have the correct resources and experts on their side in the future. A structured and well-defined TP policy will provide a roadmap for day-to-day operations. It will also ensure:-
- Adherence to UAE Corporate Tax Laws
- Proper guidance for decision-making
- Streamline internal processes
Transfer Pricing Documentation
Businesses will be required to follow the OECD Transfer Pricing Guidelines’ transfer pricing standards and documentation. Proper documentation will aid taxpayers in demonstrating that their transactions comply with the arm’s length principle, so preventing transfer pricing problems. HLB HAMT is a tax consulting firm in UAE that specialises in transfer pricing regulations and international transactions.
As an experienced tax specialist in UAE, HLB HAMT can give guidance on maintaining proper and effective:
- Local file
- Master file
Transfer Pricing Disclosure Assistance
Businesses are under more responsibility than ever to handle their Transfer Pricing (TP) adherence and documentation in an effective manner. The TP disclosure form, as well as the fact that it is integrated inside and submitted as part of the CIT return, would be filed with the assistance of experienced tax consultants in Dubai such as HLB HAMT.
Country by Country Reporting (CbCR)
Large Multinational Enterprises (MNEs) in the UAE are required to file a report with the relevant parties at the end of each financial year, detailing the amount of revenue, profit or loss before tax, income tax accrued, income tax paid, tax residence of the constituent company, and so on, under the UAE’s Country by Country Reporting (CbCR) regulations, which took effect in 2019.
Transfer Pricing due diligence
Tax authorities are concentrating their efforts on transfer pricing. HLB HAMT, a well-known Dubai tax consultant provides services in conducting due diligence studies in order to detect possible risks and ensuring that transfer pricing rules and documents are followed.
According to the OECD Transfer Pricing Guidelines, businesses in the UAE will be forced to observe transfer pricing legislation and administrative formalities. Taxpayers should use the arm’s length principle to verify that related-party transactions are priced independently. The UAE’s move to a tax economy in response to increased competitiveness is both admirable and necessary since it promotes economic diversification and accountability. Implementing an authority’s rules and regulations has become critical, and a business should hire the best tax consultants like HLB HAMT to deliver transfer pricing services if they want to prevent any future issues.
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In order to fulfill all of your transfer pricing needs, HLB HAMT can help you create tax-efficient solutions that optimize compliance with laws and regulations.
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