Related-party transactions must be at arm’s length and properly documented. Here is what is needed and when.
The disclosure form
Taxpayers with related-party or connected-person transactions above set thresholds must file a Transfer Pricing Disclosure Form with their Corporate Tax return.
Master file and local file
Groups with consolidated revenue of AED 3.15 billion or more must prepare a master file. Local files are required where revenue reaches AED 200 million, or where the group is in scope.
Keeping evidence
Maintain intercompany agreements, invoices and benchmarking support. Documentation must be available within 30 days of a request.
Key takeaways
- List all related parties and transactions
- Prepare benchmarks before filing
- Keep agreements aligned with actual practice
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