UAE: companies must be cautious with transfer pricing (TP) documentation

Transition to the tax reporting and compliance regime raises concerns about potential penalties for errors made in reporting. One such area involves transfer pricing documentation. Therefore, the Federal Tax Authority (FTA) has identified five categories of documentation that must be prepared for each tax year:

Transfer Pricing Disclosure Form

Includes details of transactions as well as related party and/or affiliates' arrangements. The form must be submitted along with the tax return, i.e. within 9 months after the end of the financial year.

Global Transfer Pricing documentation (Master file)

Common to all tax jurisdictions - provides a summarized overview of a multinational group's global operations, transfer pricing policies, information on key value drivers, and global distribution of income and economic activity. The Master file aims to explain the group's transfer pricing policies in the global economic, legal, financial and tax context.

Local Tansfer Pricing documentation (Local file)

Compiled by each member of a multinational group for its national tax authority, the Local file contains detailed ...