Transfer Pricing is a crucial part of any business’s Corporate Tax Return filing. Every corporation operating in the United Arab Emirates must comprehend and adhere to the new standards around Transfer Pricing disclosures in light of the Federal Tax Authority’s (FTA) most recent changes. Now, taxable persons must disclose transactions with Related Parties and Connected Persons in the TP Disclosure Form.
With a special emphasis on the Transfer Pricing Disclosure Form (TP Disclosure Form), our comprehensive booklet, “Transfer Pricing Disclosure in UAE: What Businesses Need to Know,” provides a clear and succinct summary of the most recent changes to the Corporate Tax Return.
These Amendments are made to:
- Related Party Transactions Reporting Schedule Requirement
- Payments/ Benefits to Connected Persons Reporting Requirement
This thorough disclosure form seeks to guarantee adherence to the recently created the UAE’s corporate tax law, which enables the tax authorities to assess the arm’s length of linked party transactions in an efficient manner. Given that the information needed is
We strongly advise Corporatae to take TP compliance seriously. Unless one has completed a benchmarking exercise, it will be impossible to fill out the aforementioned information or won’t have enough proof to support the market value or arm’s length value for the deal, and each one must accomplish this.
Note: To stay compliant, disclosure must be accurate and comprehensive. The TP form must be submitted with the CT Return since it is an integral component of the latter. Consequently, the following penalty would result from failing to file the TP form/CT Return:
- AED 500 per month for the first 12 months
- AED 1,000 per month from the 13th month onward
Transfer Pricing Disclosure in UAE: In Conclusion
Significant fines, damage to one’s reputation, and audit scrutiny could result from breaking transfer pricing laws. This manual assists you:
- Make sure all information is disclosed accurately and completely.
- Clearly navigate the new FTA standards.
- Get your internal documents ready for timely and legal filings.
Download your copy right away to make sure your company is ready to confidently handle the UAE’s changing corporate tax regulations.
