Transfer Pricing Defense Services

Transfer pricing compliance in the UAE can be complex and expensive for multinational enterprises (MNEs) and associated enterprises that face a dispute. Sometimes, tax authorities may call for transfer pricing documentation from the taxpayer to prove the Arm’s Length nature of a transaction.

Having a robust transfer pricing defence mechanism on the taxpayer’s part becomes critical in such situations. Building a proper transfer pricing defence mechanism is a complex task, which can be navigated by hiring the best transfer pricing defence services in the UAE.

The best transfer pricing defence experts in the UAE such as Tax Gian can help you improve your transfer pricing compliance status.

What’s the significance of transfer pricing defence services?

MNEs and associated enterprises may find themselves in a fix when embroiled in a transfer pricing dispute. Transfer pricing disputes have escalated across the world due to the rapidly evolving transfer pricing reforms and the public scrutiny of MNEs.

Moreover, tax authorities have access to greater resources globally to enforce transfer pricing rules. Tax authorities now engage in greater collaboration and transparency initiatives (i.e. country by country reporting) for information sharing. This can prove detrimental to the MNEs as their profit share may be impacted as a result of the dispute. Providers of transfer pricing defence services in the UAE can save you from disputes.

Proactive Transfer Pricing Defence Mechanism

Proactive transfer pricing mechanisms include ‘Advance Pricing Agreements’ (APA) with the Tax Authorities and opting for Safe Harbour regimes.

APAs are pre-negotiated agreements between taxpayers and tax authorities that determine the acceptable transfer pricing methods and pricing for specific transactions.  Entering into an APA can be a proactive approach to preventing transfer pricing disputes.

The safe harbour option allows taxpayers to establish transfer prices in a specific way, e.g. by applying a simplified transfer pricing approach provided by the tax administration. Alternatively, a safe harbour could exempt a defined category of taxpayers or transactions from the application of all or part of the general transfer pricing rules. We can advise you on how to choose the right proactive transfer pricing defence mechanism.

Reactive Transfer Pricing Defence Mechanism

You can opt for a reactive transfer pricing defence through representation before the Tax Authorities. You may submit to the Authorities the detailed documentation on your entity’s Transfer Pricing positions and policies. Tax Gian’s transfer pricing services in Dubai can help you with this.

Scope of Transfer Pricing Defence Services in the UAE

Transfer Pricing Representation

Transfer pricing service providers in the UAE can help you represent your case before the tax authorities. Transfer pricing experts can provide you with a strategy for your transfer pricing case. Risk areas will be identified and addressed during the process.

Advance Pricing Agreements

Multinational enterprises can reduce the risk of litigation by engaging in APAs. Our transfer pricing specialists in Dubai can assist you with APAs.

Safe Harbour Representations

When a taxpayer applies for a safe harbour provision, the tax authorities may check whether the application is valid or warrants rejection. Transfer pricing consultants in Dubai can assist you with representations before the tax authorities to explain the positions you have undertaken and justify the option of a safe harbour.

Transfer Pricing Litigation Strategy

Transfer pricing advisers in the UAE can help MNEs with a formal strategy build-up around transfer pricing litigation strategy. Tax Gian’s transfer pricing defence services in Dubai can provide you with the necessary professional advice.

Analysis of Transfer Pricing Risk Profiling

Transfer pricing defence service providers in the UAE can make a detailed review of the documentation and identify the risks in them. Tax Gian’s qualified transfer pricing experts can also recommend remedial actions.

The Best Transfer Pricing Defence Services in Dubai, UAE

MNEs will need access to high-quality transfer pricing defence services in the UAE to navigate the complex landscape of transfer pricing disputes. Tax Gian, a brand of Jitendra Tax Consultants (JTC), has a team of highly qualified tax experts in Dubai who can provide you with robust solutions. Our team is well-versed in all the relevant transfer pricing regulations. By engaging transfer pricing consultants in Dubai such as Tax Gian, MNEs can build a robust defence against potential challenges.

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