Tax · Concept
Transfer Pricing
The pricing of transactions between related parties (sister companies, parent-subsidiary). Must be at arm's length — what unrelated parties would charge in the same transaction.
In practice
UAE Corporate Tax imports OECD transfer-pricing principles. Material related-party transactions require benchmarking documentation. Common UAE transfer-pricing situations: management charges between UAE and overseas parent, royalty payments to IP holding parent, intra-group financing. Penalties for inadequate documentation apply.