Transfer Pricing Services in ADGM

Transfer pricing plays a crucial role in the Abu Dhabi Global Market (ADGM) by ensuring that transactions between affiliated entities are priced fairly and at arm's length. Transfer Pricing Services in ADGM by MS ensure financial transparency, avoid tax evasion, and align with global standards.

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Mohammad Shafeek

Founder & Group CEO, MS

Let MS empower your business in ADGM

UAE TP: Simplified and Future-Ready

On 9 December 2022, the UAE Ministry of Finance (MoF) enacted Federal Decree-Law No. 47 of 2022, which introduced transfer pricing (TP) requirements mandating adherence to the arm’s length principle for related party transactions. This law is overseen by the Federal Tax Authority (FTA). On 11 May 2023, Ministerial Decision No. 97 of 2023 detailed the TP documentation requirements under the UAE CT regime. At MS, we provide tailored services including the preparation of detailed transfer pricing documentation, development of compliant policies, advisory on best practices, and audit support. Our team is dedicated to helping you meet the Arm’s Length Principle requirements and manage any associated risks effectively.

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Are you in a hurry? reach us on +971 2 309 3344 or [email protected]

What causes transfer pricing disputes?

What will be the impact of Transfer Pricing Rules on Corporate Tax in the UAE?

Key points on UAE Transfer Pricing Regulations

UAE transfer pricing regulations align with the OECD Transfer Pricing Guidelines, which require that intercompany transactions be priced as if they were conducted between unrelated parties.

Companies must prepare and maintain transfer pricing documentation to substantiate that their intercompany transactions are priced at arm's length.

UAE regulations mandate the submission of a transfer pricing disclosure form as part of the corporate tax return. Companies are required to provide detailed information on related-party transactions, including pricing methods and justifications.

Companies with related-party transactions must prepare a Local File (specific to UAE operations) and a Master File (providing an overview of the multinational group's global operations).

Failing to comply with transfer pricing regulations can result in penalties, including fines and adjustments to taxable income.

The UAE offers the option to enter APAs with the Federal Tax Authority (FTA) to agree on transfer pricing methods and avoid disputes.

Arm’s Length Principle: The core principle is that transactions between related parties should be priced as if they were conducted between unrelated parties, ensuring fair market value.

Why MS
Transfer Pricing Services for ADGM entities

In the Abu Dhabi Global Market (ADGM), transfer pricing is a fundamental aspect of maintaining financial integrity and regulatory compliance. Our approach ensures that transactions between affiliated entities are priced fairly and in line with market conditions. By adhering to international standards and local regulations, we help prevent tax evasion and promote transparency. This commitment not only supports a trustworthy business environment but also enhances stakeholder confidence, making the ADGM a robust and credible hub for business operations.

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Frequently Asked Questions (FAQ)

How can my company ensure its transfer pricing policies are compliant with UAE laws?

To ensure compliance, transfer pricing policies must be aligned with the arm’s length principle as defined by UAE regulations. We can help develop and implement transfer pricing policies that reflect these requirements and are tailored to your specific business operations.

What steps should be taken if the Federal Tax Authority (FTA) conducts a transfer pricing audit?

In the event of an FTA audit, it is crucial to have well-prepared documentation and a robust compliance strategy. Our team provides audit support, including reviewing and validating your transfer pricing documentation and practices to ensure they meet FTA standards.

How can my company manage risks associated with transfer pricing?

Managing transfer pricing risks involves proactive compliance measures and regular reviews of your transfer pricing practices. We offer advisory services to help identify and mitigate potential risks, ensuring your practices are both compliant and optimized.

What are the benefits of using professional services for transfer pricing compliance?

Professional services provide expertise in navigating complex regulations, ensuring accurate documentation, and implementing effective policies. Our company offers specialized support to streamline compliance processes, reduce risk, and ensure adherence to UAE transfer pricing requirements.

Disclaimer: MS is a trading name of MS Corporate Services (DIFC) Limited, M S Global Solutions DMCC and M S Chartered Accountants LTD (ADGM). MS Corporate Services (DIFC) Limited is registered with the Dubai Financial Services Authority (Reg No: 9054) as DNFBP and is commercially licensed by the Dubai International Financial Centre Authority as a Corporate Services Provider. M S Global Solutions DMCC is licensed by Dubai Multi Commodities Centre Authority (Reg no: 873767) as a Corporate Services Provider and Management Consultant. M S Chartered Accountants LTD is licensed by ADGM Authority (Reg No: 000007218) for Management Consultancy, Tax Consultancy, Compliance Consultancy and Accounting Services.

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Level 1, Gate Avenue - South Zone
Dubai International Financial Centre (DIFC)
Dubai, UAE
Level 24, Tamouh Tower
Al Reem Island, ADGM
Abu Dhabi, UAE
Level 11, Fortune Tower
Dubai Multi Commodities Center (DMCC)
Jumeirah Lake Towers, Dubai, UAE
+971 2 3093 344
[email protected]