Website Last updated:

May 15, 2026

This guide details the application of the arm's length principle to transactions between Related Parties and Connected Persons, as mandated by Chapter Ten, particularly Article 34. It explains the five prescribed transfer pricing methods, including CUP, TNMM, and Profit Split. The guide outlines the documentation requirements, including the Master File, Local File, and disclosure form, referencing OECD Guidelines. It provides specific guidance on applying the principle to financial transactions, intra-group services, and intangibles, ensuring compliance with UAE's transfer pricing regime and international standards.

Transfer Pricing Guide

Corporate Tax Guide | CTGTP1

October 2023

1. Glossary

1.1. Definitions
1.2. Acronyms and Abbreviations

2. Introduction

2.1. Overview
2.2. Purpose of this guide
2.3. Who should read this guide?
2.4. How to use this guide
2.5. Legislative references
2.6. Status of this guide

3. Transfer Pricing at a glance

4. Transfer Pricing Principles and Fundamentals

4.1. Overview
4.2. What is Transfer Pricing
4.3. The Arm’s Length Principle
4.4. Scope of the Transfer Pricing rules
1. 4.4.1. Related Parties and Connected Persons
  4.4.2. Controlled Transactions

5. Application of the Arm’s Length Principle

5.1. Step 1: Identify Related Parties, Connected Persons, relevant transactions and arrangements and perform comparability analysis accordingly
1. 5.1.1. Identification of the commercial and financial relations
  5.1.2. Other considerations
5.2. Step 2: Selection of the most appropriate Transfer Pricing method
1. 5.2.1. Transfer Pricing methods
  5.2.2. Selection of the most appropriate method
  5.2.3. Using a combination of Transfer Pricing methods
5.3. Step 3: Determination of the Arm’s Length Price
1. 5.3.1. Choice of the tested party
  5.3.2. Comparable Uncontrolled Transactions
  5.3.3. Comparability adjustments
  5.3.4. Determining the arm’s length range
  5.3.5. Other considerations

6. Transfer Pricing Documentation

6.1. Introduction
6.2. Objectives of Transfer Pricing documentation
6.3. Contemporaneous Transfer Pricing documentation
6.4. Summary of the UAE Transfer Pricing documentation requirements
6.5. General Transfer Pricing disclosure form
6.6. Master File and Local File
1. 6.6.1. Master File
  6.6.2. Local File
  6.6.3. Exceptions on maintenance of a Master File and a Local File
6.7. Country-by-Country Reporting (CbCR)

7. Special Considerations for Specific Cases

Contents