Transfer Pricing Services in the UAE
The implementation of corporate tax in the UAE has made transfer pricing a vital compliance requirement based on OECD principles. At HLB HAMT, we offer comprehensive transfer pricing services, including detailed transfer pricing assessments and impact evaluations.
Our experts leverage top benchmarking software to ensure fair pricing for transactions between related parties, safeguarding the integrity of your tax base. We provide tailored solutions to help you comply with regulations, allowing you to focus on growth while ensuring adherence to transfer pricing rules. Trust HLB HAMT to optimize your international operations through effective transfer pricing strategies.
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Comprehensive Transfer Pricing Services at HLB HAMT
At HLB HAMT, we offer a full range of transfer pricing services designed to help businesses comply with regulations and optimize their operations. Our services include:
Transfer Pricing Assessment
We conduct Transfer Pricing assessments to evaluate transactions and ensure they comply with the arm’s length principle (ALP). This step helps maintain transparency and integrity in your financial operations while also adhering to international tax standards. It allows businesses in the UAE to address potential issues early and refine their pricing strategies, reducing the risk of disputes with tax authorities.
Transfer Pricing Impact Assessment
Our Transfer Pricing impact assessment helps your business understand how new transfer pricing regulations will affect your finances and operations. We:
- Identify related party transactions to ensure compliance.
- Analyze the financial and operational effects of new rules to keep your business prepared.
- Spot risks and opportunities, allowing for adjustments that create a more efficient transfer pricing model.
Transfer Pricing Disclosure Form
We assist in preparing the transfer pricing disclosure form, which details controlled transactions during a tax period. This form is mandatory for businesses that engage in transactions exceeding specific thresholds set by the Federal Tax Authority (FTA). We ensure that:
- Transactions above AED 40 million or any category exceeding AED 4 million are reported.
- Any transactions over AED 500,000 with connected persons are disclosed.
Creation of Local and Master Files
For multinational enterprises (MNEs) with consolidated revenues over AED 3.15 billion or individual revenues above AED 200 million, we prepare necessary Transfer pricing documents:
- Local File: This file includes details on intercompany transactions, related parties, and compliance with the arm’s length principle.
- Master File: This document provides an overview of the MNE’s global operations, including business structure and income allocation.
Country-by-Country Report
We help prepare the Country by Country (CbC) report, which shows the global distribution of your MNE group’s income and taxes paid. This report is crucial for compliance with the FTA’s requirements.
Benchmarking Services
Our transfer pricing consultants are experts in transfer pricing benchmarking, using advanced software to compare your intercompany transaction prices with those of independent entities. This allows us to assess general market pricing conditions and determine arm’s-length ranges. We collect and analyze extensive data to validate your pricing strategies effectively.
Functional Analysis (FAR) Services
At HLB HAMT, we offer comprehensive Functional Analysis (FAR) services to ensure your transfer pricing strategies align with regulatory requirements and market conditions. Our expert team conducts thorough assessments to identify the functions performed, assets utilized, and risks assumed by related parties in controlled transactions. This analysis helps determine profit contributions and appropriate pricing for intercompany transactions.
By gathering detailed information through interviews, business documentation, and industry insights, we help businesses understand their contributions to the value chain. This service not only supports compliance with the arm’s-length principle but also aids in optimizing pricing strategies and minimizing tax disputes, positioning your business for sustainable growth.
Distinctive Features of HLB HAMT’s Transfer Pricing Services in UAE
Connect with the firm that has 25 years of experience and ranks 6th in the UAE!
Contact us today for expert transfer pricing solutions that ensure compliance and drive your business growth!
Connect with the firm that has 25 years of experience and ranks 6th in the UAE!
Contact us today for expert transfer pricing solutions that ensure compliance and drive your business growth!
Frequently Asked Questions
What types of transactions qualify for transfer pricing?
Transfer pricing applies to related party transactions, both domestic and international, including transactions with connected persons involving sales, purchases, services, loans, guarantees, intellectual property (IP), and facility support.
Why are off-FS transactions relevant under transfer pricing regulations?
Off-FS transactions must be assessed under transfer pricing regulations because they can impact taxable income and compliance with the arm’s length principle, even if they are not recorded in financial statements.
What examples of off-FS transactions should be considered?
Examples of off-FS transactions include
- Guarantees: Financial guarantees provided between related parties.
- Collaterals: Assets pledged by one entity as security for a loan or obligation to another related party.
- Expenses Incurred for Related Parties: Costs incurred by one entity on behalf of another related party, such as salaries paid to employees that are charged as expenses in the parent company’s books but not accounted for in the recipient’s financial statements.
When can transfer pricing adjustments be made in the books of accounts?
Transfer pricing adjustments can be made before the audit, after the audit, or during the return filing stage. There is no mandatory requirement to complete these adjustments before proceeding to the audit.
How does the ALP affect tax computation?
The Arm’s Length Principle (ALP) impacts tax computation by guiding transfer pricing adjustments under Articles 34 and 35. These adjustments allow businesses to accurately calculate the final tax payable for the year, ensuring that intercompany transactions are priced fairly and in compliance with regulatory standards.