Applicability depends on the nature and materiality of your Controlled Transactions and your Corporate Tax status. Under Federal Decree-Law No. 47 of 2022, taxable persons within scope must demonstrate arm's length outcomes for Related Party and Connected Person dealings. Depending on the arrangement, a transfer pricing benchmark in UAE may test operating margins, service mark-ups, interest rates, royalty rates, or Connected Person remuneration. We review your intercompany arrangements against the FTA Transfer Pricing Guide, scope the appropriate study, and quote fees and timelines after the initial functional review is complete.

A transfer pricing benchmark analysis in UAE is best commissioned before year end, so that pricing policies can be adjusted if the tested transaction falls outside the arm's length range. Where the return period has already closed, a study can still be prepared to support the filing position and Local File. Common triggers include setting or revising a transfer pricing policy, preparing a Local File, testing year end results, or responding to an FTA information request. Asad Abbas & Co. will scope the workstreams after reviewing your Related Party and Connected Person transactions.

We ask for intercompany agreements, financial statements, a functional description of the tested party, segmented financials where available, and any prior transfer pricing documentation. Internal comparables are considered first where your group has a similar transaction with an independent third party. Where reliable internal data is unavailable, we perform an external transfer pricing benchmark analysis in UAE using commercial databases screened for commercial, functional, and financial comparability. Every acceptance or rejection is documented with an audit trail that supports the search strategy against FTA review.

The FTA Transfer Pricing Guide expects an annual financial update of previously selected comparables, with a full comparable refresh every three years. Where the transaction, business model, or functional profile has materially changed, the full transfer pricing benchmarking analysis in UAE should be revisited in the year of change. Asad Abbas & Co. can perform an annual update of an existing study prepared by us or by another adviser, subject to a review of the underlying methodology, and will flag if a full refresh is required based on the change in facts.

Where the payments and benefits provided to Connected Persons are material, market value support may be required for UAE Corporate Tax purposes. There is no single FTA salary table or fixed percentage. Our remuneration analysis considers role, decision making authority, experience, seniority, time commitment, industry, business size, financial performance, and available UAE remuneration data. The study supports the market value assessment for the tested position, while noting that Corporate Tax deductibility depends on the wider conditions in the law being satisfied for the payment itself.

Not automatically. The FTA Transfer Pricing Guide provides a simplified safe harbour for qualifying low value adding intra group services, under which a five percent mark-up on the relevant cost base may be applied without a full transfer pricing benchmarking services in UAE exercise for the mark-up itself. The simplified approach is unavailable for core business functions, research and development, manufacturing, sales and marketing, financial transactions, insurance, and corporate senior management. Asad Abbas & Co. assesses whether your service arrangement qualifies before you rely on the mark-up.

Yes. Economic analysis is often central to the Local File where material Controlled Transactions require support. We prepare the transfer pricing method selection, tested party analysis, comparable search, financial indicator, arm's length range, and conclusion in a single workstream so the Local File reads as one coordinated document. Our transfer pricing benchmarking services are coordinated with Local File preparation, Related Party disclosures, and the Corporate Tax return, keeping the accounting data, economic analysis, and filing position consistent through internal review and any FTA follow up.

Yes. The FTA Transfer Pricing Guide expects the UAE context to be considered, including local or regional comparables where available. Where reliable UAE or regional data is unavailable, a transfer pricing benchmarking analysis in UAE may draw on broader comparable information provided it offers reliable evidence for the tested transaction. We document the search strategy, screening criteria, geographic filters, and any comparability adjustments applied, and explain in the Local File why the selected comparable set is the most reliable available under the specific commercial circumstances.

Yes. An arm's length interest rate cannot generally be derived by adding a fixed percentage to a benchmark rate. Our loan analysis considers the principal, currency, term, issue date, fixed or floating structure, borrower credit profile, repayment conditions, collateral, seniority, covenants, and comparable third party financing. We review the existing intercompany financing, determine an appropriate transfer pricing benchmark in UAE for the loan, and assess whether the resulting rate or range is defensible under Federal Decree-Law No. 47 of 2022 and the FTA Transfer Pricing Guide.

Our tax practice is FTA registered, with CPAs, CGMAs, CMAs, and MBAs supporting each engagement. Asad Abbas & Co. is an independent member of Prime Global International, ISO 9001-2015 certified, and UAE Ministry of Justice accredited. Each UAE transfer pricing benchmark services engagement begins with the transaction and functional analysis rather than a target margin. We coordinate the economic study with Corporate Tax registration, return filing, Local File preparation, and Related Party disclosures, delivered from our Dubai, Abu Dhabi, and Sharjah offices under partner review on every file.

Yes. Our tax practice serves mainland and free zone taxpayers, including qualifying free zone persons required to demonstrate that Related Party dealings meet the Arm's Length Principle under Federal Decree-Law No. 47 of 2022. Asad Abbas & Co. is listed as an approved auditor across 17+ UAE free zones, and engagements cover distribution margins, management fees, intercompany interest, royalties, and Connected Person remuneration. Free zone benchmarking is coordinated with your Corporate Tax registration, return filing, and Local File preparation where the entity is in scope.