{"id":5740,"date":"2026-04-09T18:03:34","date_gmt":"2026-04-09T12:33:34","guid":{"rendered":"https:\/\/www.anbacadvisors.com\/uae\/?p=5740"},"modified":"2026-04-09T18:04:13","modified_gmt":"2026-04-09T12:34:13","slug":"transfer-pricing-compliance-requirements-in-dubai-uae","status":"publish","type":"post","link":"https:\/\/www.anbacadvisors.com\/uae\/transfer-pricing-compliance-requirements-in-dubai-uae\/","title":{"rendered":"Transfer Pricing compliance requirements in Dubai, UAE"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Dubai-based businesses must comply with\u00a0UAE Corporate Tax Law\u00a0(Federal Decree-Law No. 47 of 2022) regarding transfer pricing, which mandates that transactions with related parties and connected persons follow the &#8220;arm\u2019s length&#8221; principle. Key compliance requirements include\u00a0<\/span><span style=\"font-weight: 400;\">submitting a Transfer Pricing Disclosure Form alongside the tax return, and maintaining Master and Local Files if revenue exceeds AED 200 million or if the group revenue exceeds AED 3.15 billion<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Transfer pricing (TP) in Dubai requires that\u00a0transactions between related parties or connected persons comply with the arm&#8217;s-length principle under UAE Corporate Tax Law. Companies must maintain documentation (Master File\/Local File) if revenue exceeds AED 200 million or if part of a large multinational group (AED 3.15 billion+).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A disclosure form is required if:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total transactions with related parties\/connected persons exceed AED 40 million.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Individual transaction categories (e.g., services, goods) exceed AED 4 million.<\/span><\/li>\n<\/ul>\n<h2><b>Key TP Requirements &amp; Compliance:<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.google.com\/search?q=Arm%E2%80%99s+Length+Principle&amp;oq=Transfer+Pricing+requirements+in+Dubai&amp;gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBBzE2MWowajGoAgCwAgA&amp;sourceid=chrome&amp;ie=UTF-8&amp;mstk=AUtExfBGkJCc1a1HLtc0JptND806802AoOaFgzwvzfkAcf98iOC5ettSlC6ryOtZAa3kUs9rNA4Xil5jXtLetwKqS4PWLPrAMze3twRSetoU9KV7MbhE683AWLv2U5HC6RldNZ-B0hsK79XshpSQJA0k5wws742XC_oLmobYqwQjbH-oZ3A&amp;csui=3&amp;ved=2ahUKEwi11Lfy9d2TAxUXSWwGHaJnCrQQgK4QegQIAxAB\"><b>Arm\u2019s Length Principle<\/b><\/a><b>:<\/b><span style=\"font-weight: 400;\">\u00a0All transactions (goods, services, loans, intellectual property) with related parties\/connected persons must be priced as if they were with unrelated parties.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Documentation Thresholds:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Master File and Local File:<\/b><span style=\"font-weight: 400;\">\u00a0Required if the entity is part of an MNE group with consolidated group revenue\u00a0<\/span><span style=\"font-weight: 400;\">greater than or equal to <\/span><span style=\"font-weight: 400;\">AED 3.15 billion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Local File:<\/b><span style=\"font-weight: 400;\">\u00a0Generally required for UAE entities with revenue\u00a0<\/span><span style=\"font-weight: 400;\">exceeding <\/span><span style=\"font-weight: 400;\">AED 200 million.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>TP Disclosure Form:<\/b><span style=\"font-weight: 400;\">\u00a0Required for all taxpayers with related-party transactions above a certain, yet-to-be-defined materiality threshold, though commonly applied to those exceeding an aggregate of AED 40 million, or individual categories over AED 4 million.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.google.com\/search?q=Connected+Persons&amp;oq=Transfer+Pricing+requirements+in+Dubai&amp;gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBBzE2MWowajGoAgCwAgA&amp;sourceid=chrome&amp;ie=UTF-8&amp;mstk=AUtExfBGkJCc1a1HLtc0JptND806802AoOaFgzwvzfkAcf98iOC5ettSlC6ryOtZAa3kUs9rNA4Xil5jXtLetwKqS4PWLPrAMze3twRSetoU9KV7MbhE683AWLv2U5HC6RldNZ-B0hsK79XshpSQJA0k5wws742XC_oLmobYqwQjbH-oZ3A&amp;csui=3&amp;ved=2ahUKEwi11Lfy9d2TAxUXSWwGHaJnCrQQgK4QegQIAxAJ\"><b>Connected Persons<\/b><\/a><b>:<\/b><span style=\"font-weight: 400;\">\u00a0UAE Transfer Pricing Rules extend beyond traditional related parties to include owners, directors, and officers of the company, especially regarding remuneration.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/www.google.com\/search?q=Penalties&amp;oq=Transfer+Pricing+requirements+in+Dubai&amp;gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBBzE2MWowajGoAgCwAgA&amp;sourceid=chrome&amp;ie=UTF-8&amp;mstk=AUtExfBGkJCc1a1HLtc0JptND806802AoOaFgzwvzfkAcf98iOC5ettSlC6ryOtZAa3kUs9rNA4Xil5jXtLetwKqS4PWLPrAMze3twRSetoU9KV7MbhE683AWLv2U5HC6RldNZ-B0hsK79XshpSQJA0k5wws742XC_oLmobYqwQjbH-oZ3A&amp;csui=3&amp;ved=2ahUKEwi11Lfy9d2TAxUXSWwGHaJnCrQQgK4QegQIAxAL\"><b>Penalties<\/b><\/a><b>:<\/b><span style=\"font-weight: 400;\">\u00a0Non-compliance can lead to penalties under the\u00a0<\/span><span style=\"font-weight: 400;\">UAE Tax Procedures Law<\/span><span style=\"font-weight: 400;\">, including fines for late filing or failure to submit proper documentation.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>Methods and Documentation:<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>TP Methods:<\/b><span style=\"font-weight: 400;\">\u00a0The\u00a0Federal Tax Authority (FTA)\u00a0accepts OECD-aligned methods, including the Comparable Uncontrolled Price (CUP) method, Resale Price Method, Cost-Plus Method, and Transactional Net Margin Method (TNMM). Profit Split Method may also be adopted in specific cases, as per requirements.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Documentation:<\/b><span style=\"font-weight: 400;\">\u00a0Companies must maintain records justifying their pricing, which must be provided within 30 days if requested by the FTA.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>Important Considerations:<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Domestic Transactions:<\/b><span style=\"font-weight: 400;\">\u00a0TP rules apply to both cross-border and domestic transactions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Monitoring:<\/b><span style=\"font-weight: 400;\">\u00a0It is recommended to perform year-end TP adjustments to ensure compliance with the arm&#8217;s length standard.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Companies like Anbac Advisors help prepare robust documentation, to defend pricing policies, in accordance with UAE as well as OECD requirements of arms length pricing.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By,<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Team AnBac<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dubai-based businesses must comply with\u00a0UAE Corporate Tax Law\u00a0(Federal Decree-Law No. 47 of 2022) regarding transfer pricing, which mandates that transactions with related parties and connected persons follow the &#8220;arm\u2019s length&#8221; principle. Key compliance requirements include\u00a0submitting a Transfer Pricing Disclosure Form alongside the tax return, and maintaining Master and Local Files if revenue exceeds AED 200 [&hellip;]<\/p>\n","protected":false},"author":475,"featured_media":5741,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[186],"tags":[],"class_list":["post-5740","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/posts\/5740","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/users\/475"}],"replies":[{"embeddable":true,"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/comments?post=5740"}],"version-history":[{"count":2,"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/posts\/5740\/revisions"}],"predecessor-version":[{"id":5743,"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/posts\/5740\/revisions\/5743"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/media\/5741"}],"wp:attachment":[{"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/media?parent=5740"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/categories?post=5740"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.anbacadvisors.com\/uae\/wp-json\/wp\/v2\/tags?post=5740"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}