Transfer Pricing (TP) in the UAE isn’t a one-size-fits-all rule but if your business works with related parties or forms part of a multinational group, it likely affects you.
Whether you’re setting up in Dubai, operating out of a free zone, or expanding globally, understanding your TP obligations is key to staying compliant (and avoiding penalties down the road).
Who Needs to Worry About Transfer Pricing?
Under the UAE Corporate Tax Law, TP regulations apply if your business:
- Transacts with related parties or connected persons, regardless of revenue size, or
- Belongs to a Multinational Enterprise (MNE) group with global revenues of AED 3.15 billion or more.
These rules are designed to ensure that any intercompany transactions are priced as if they were between independent third parties. In other words, fair and market-aligned.
This includes:
- Mainland LLCs and establishments
- Free zone companies (especially those applying for 0% tax status)
- UAE branches of foreign entities
- Any business involved in cross-border or domestic related-party dealings
What About Documentation?
Here’s the nuance. Even if TP principles apply, not all businesses need to prepare full documentation (like a Master File or Local File).
You’re only required to maintain detailed TP documentation if:
- You’re part of an MNE group earning ≥ AED 3.15B globally, or
- Your related-party transactions exceed certain thresholds (per UAE Cabinet Decision No. 44 of 2023)
That said, the arm’s length principle still applies to everyone. So even if you’re exempt from paperwork, your prices must still be reasonable and justifiable.
Quick Snapshot: Does This Apply to You?
Situation | TP Applies? |
You transact with related or connected parties | ✓ Yes |
You’re in an MNE group (≥ AED 3.15B global revenue) | ✓ Yes |
No related-party or connected-person transactions | X Documentation not required |
You’re below the materiality thresholds | ✓ Principles apply, but documentation may not be required |
What This Means for You
The bottom line? Transfer Pricing in the UAE is less about the size of your company and more about who you’re doing business with—and how those deals are priced.
If you’re not sure whether you’re affected, or how to document your related-party transactions properly, it’s worth getting clarity before tax season hits.
At The Nomad Accountant, we help internationally minded businesses navigate tax compliance with confidence.
Let’s make sure your UAE structure stays clean and future-ready wherever you’re doing business.
Reach out for a TP compliance review