Transfer Pricing Compliances
Manage your transfer pricing obligations effectively with Stratify, ensuring compliance and mitigating potential risks.
What Is Transfer Pricing Compliance?
Transfer pricing compliance involves adhering to tax regulations that require multinational corporations to document and report on their intercompany transactions. The compliance framework includes the preparation and submission of the following key components:
Our Transfer Pricing Services
At Stratify, we offer Transfer Pricing Impact Assessment and Benchmarking Analysis services to ensure your business complies with UAE and international regulations while optimizing your tax strategy.
Transfer Pricing Disclosure Form
The Transfer Pricing Disclosure Form is a mandatory filing requirement for businesses in the UAE. It provides tax authorities with key information about intercompany transactions, including details about the nature, volume, and parties involved. This form ensures transparency in how pricing is determined for goods, services, and intellectual property exchanged between related entities.
At Stratify, we assist in preparing accurate and timely disclosure forms, ensuring that all necessary details are captured to avoid penalties or inquiries from tax authorities.
Local File
The Local File is an in-depth report detailing the specific transfer pricing policies applied to intercompany transactions within the UAE. It includes information about the company’s business operations, financial performance, and a detailed analysis of each transaction to demonstrate compliance with the arm’s length principle.
Our team at Stratify prepares comprehensive Local Files that align with the latest regulatory guidelines, ensuring your transfer pricing policies are well-documented and defensible in the event of an audit.
Master File
The Master File is a global document that provides an overview of a multinational group’s business operations, transfer pricing policies, and financial arrangements. It includes information about the group’s organizational structure, global allocation of income, and details of significant intangible assets. The Master File is required to be consistent across all jurisdictions where the multinational operates.
Stratify’s experienced professionals assist in the preparation of Master Files that meet UAE and international requirements, providing a clear and comprehensive view of your global transfer pricing policies.
Country-by-Country Reporting (CbCR)
Country-by-Country Reporting (CbCR) is a requirement for large multinational enterprises (MNEs) with consolidated group revenues exceeding a certain threshold. CbCR involves filing a report that discloses the group’s revenue, profit, taxes paid, and other economic indicators for each country where the MNE operates. This report allows tax authorities to assess whether profits are being appropriately reported and taxed in each jurisdiction.
Stratify assists with the preparation and filing of CbCR, ensuring that your report meets all necessary requirements and deadlines. We also help you analyze the results of the report to identify any potential risks or opportunities for tax optimization.
Why Is Transfer Pricing Compliance Important?
Avoid Tax Penalties
Failure to comply with transfer pricing rules can lead to hefty fines and penalties imposed by tax authorities.
Minimize Tax Risks
Properly structured and documented transfer pricing policies help mitigate the risk of tax adjustments, where authorities may challenge the pricing of intercompany transactions.
Enhance Tax Planning
Strategic transfer pricing policies can optimize your global tax position, helping to reduce tax liabilities while ensuring compliance with local laws.
Prepare for Audits
Comprehensive documentation, including Local Files and Master Files, provides a robust defense during tax audits, demonstrating that your intercompany transactions are in line with the arm’s length principle.
Stratify’s Transfer Pricing Compliance Services
At Stratify, we offer end-to-end support for all aspects of transfer pricing compliance. Our team of experienced tax professionals works closely with your business to ensure that your transfer pricing policies are not only compliant but also strategically aligned with your broader business goals. Here’s how we can help:
Preparation of Disclosure Forms
We gather the necessary data and prepare your transfer pricing disclosure forms for timely submission, ensuring transparency in your intercompany transactions.
Local and Master File Preparation
We understand that every business is unique. Our transfer pricing impact assessments and benchmarking analyses are tailored to meet your specific needs, ensuring that we provide the most relevant and practical solutions.
CbCR Compliance
We assist large multinational groups with the preparation and filing of Country-by-Country Reports, ensuring compliance with the relevant thresholds and deadlines.
Transfer Pricing Advisory
Beyond compliance, we provide strategic transfer pricing advice to help optimize your tax position and mitigate potential risks. Our experts stay up-to-date with the latest regulatory developments to ensure your policies are always aligned with current laws.
Start your Business Today
Start your Business Today
Our Other Corporate Tax Services
Corporate Tax Impact Assessment
Corporate Tax Registration
Corporate Tax Return Filing
Transfer Pricing Impact Assessment
Transfer Pricing Compliances
Advisory on cross-border transactions
Tax Residency Certificate
Permanent Establishment (PE) Analysis
Place of Effective Management (POEM) Analysis
FTA Private clarifications
Tax Reliefs/Exemptions
Tax Representation
- Corporate Tax Impact Assessment
- Corporate Tax Registration
- Corporate Tax Return Filing
- Transfer Pricing Impact Assessment
- Transfer Pricing Compliances
- Advisory On Cross-border Transactions
- Tax Residency Certificate
- Permanent Establishment (PE) analysis
- Place of Effective Management (POEM) Analysis
- FTA Private Clarifications
- Tax Reliefs/Exemptions
- Tax Representation
Our Services
Stratify Corporate services is an independent and international organisation with a specialization in crafting sustainable solutions and strategies
Value Added Tax
Ensure full compliance with UAE’s Value Added Tax regulations through tailored advisory, registration, filing, and VAT health check services.
Read More
Corporate Tax
Navigate UAE’s corporate tax landscape with strategic tax planning, filing, and compliance support to optimize your tax position.
Read More
Excise Tax
We assist businesses in understanding and complying with excise tax regulations, including registration, filing, and audit preparation.
Read More
Accounting Outsourcing
Streamline your financial operations by outsourcing your accounting needs, from bookkeeping to financial reporting, for efficient management.
Read More
Customs
Simplify import-export procedures and ensure compliance with UAE Customs regulations through advisory, registration, and customs reconciliation services.
Read More
Company Formation
Start your business in the UAE with expert guidance on company incorporation, licensing, and compliance with local regulations.
Read More
Audit & Assurance
Our audit and assurance services provide reliable financial insights, ensuring transparency and compliance with regulatory requirements.
Read More
Economic Substance
Anti-Money Laundering
Protect your business by staying compliant with UAE’s AML regulations, with risk assessments, monitoring, and reporting solutions.
Read More
Frequently Asked Questions
What is a Transfer Pricing Disclosure Form?
The Transfer Pricing Disclosure Form is a mandatory document that provides information on intercompany transactions to tax authorities. It ensures transparency in how prices are determined for transactions between related parties.
What is the difference between a Local File and a Master File?
The Local File is a detailed report of transfer pricing transactions specific to a country, while the Master File provides a global overview of a multinational group’s transfer pricing policies and financial arrangements.
Who is required to file a Country-by-Country Report (CbCR)?
CbCR is required for multinational enterprises (MNEs) with consolidated group revenues exceeding a certain threshold. The report must disclose revenue, profit, and other financial data for each country where the MNE operates.
How often must transfer pricing documentation be updated?
Transfer pricing documentation, including Local Files, Master Files, and CbCR, should be updated annually to reflect the latest financial data and changes in business operations.
What happens if a company fails to comply with transfer pricing regulations?
Non-compliance can result in significant penalties, tax adjustments, and interest charges. Companies may also face increased scrutiny during tax audits.
Latest News
Ready to Simplify Your Journey?
For expert assistance with transfer pricing compliance, including preparation of Disclosure Forms, Local and Master Files, and CbCR, contact Stratify today. Let our team of professionals help you navigate the complexities of transfer pricing regulations while optimizing your global tax strategy.
