The use of transfer pricing procedures has recently attracted significant global attention due to the increasing importance of transfer pricing in corporate taxation in the UAE. ITC Accounting and Tax Consultancy can help you create effective tax arrangements to maximize legal and regulatory compliance while meeting all your transfer pricing requirements as tax authorities scrutinize transfer pricing activities around the world. Companies doing cross-border transactions are aware of the value of transfer pricing. Large, medium and small groups now face higher risks due to tax authorities’ monitoring and regulatory standards. More and more multinational companies are increasingly considering the potential cost management opportunities offered by well-designed transfer pricing models.

When adopting Transfer Pricing for the first time, keep in mind the following:

1. Understand the principles: Transfer pricing principles are important for internal business practices and should be aligned with market policies to allocate profitability to the value chain effectively.

2. Plan transfer pricing and taxes: Re-look at internal pricing practices and consider applying transfer pricing principles. Seek help from an experienced transfer pricing professional, conduct comparative analysis and benchmarking studies to determine prevailing industry prices and profitability.

3. Document transactions: Documentation supporting transactions is crucial not only for compliance but also for litigation purposes. Ensure that documentation is complete, accurate, and readily available in case of any dispute.

4. Be compliant: Comply with the jurisdiction’s laws and regulations to avoid penalties and hindrances to business objectives. Keep track of compliance requirements and undertake timely compliances as required by the law.