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Transfer Pricing Due Diligence Services
Transfer pricing has become a challenge for Multinational enterprises (MNEs) and the entities that are part of the larger MNE group. Transfer pricing refers to the pricing of goods, services, and intellectual property transferred within the entities of an MNE group that are located in different tax jurisdictions.
These prices must be at arm’s length, meaning the transactions must be priced as if they were conducted between independent enterprises in the open market.
However, the deficiencies of transfer pricing compliance in the UAE may come to the fore during activities like mergers & acquisitions (M&A) or restructuring. This can be navigated by conducting due diligence by hiring the providers of transfer pricing due diligence services in the UAE.
Tax Gian, a brand of Jitendra Tax Consultants (JTC), is one of the best transfer pricing due diligence services providers in Dubai.
What is a transfer pricing due diligence service?
By hiring transfer pricing due diligence services in the UAE, qualified tax experts will assess your group’s intercompany transactions and transfer pricing practices in detail. This high-level assessment will identify potential risks, compliance issues, and financial implications related to your company’s transfer pricing arrangements.
How does transfer pricing due diligence work?
Transfer pricing due diligence assessment helps the acquiring or restructuring party to make informed decisions.
As part of the due diligence process, tax experts at Tax Gian will closely scrutinise the robustness of the transfer pricing documentation based on factors such as the relevant industry sector, business model, arrangements with its related parties, transfer pricing filings/documentation/methodologies adopted, details of any existing advance pricing arrangement with the tax authorities, litigation history, etc.
How do you benefit from transfer pricing due diligence?
With the help of transfer pricing due diligence service providers in UAE, you can measure the following:
- Current/potential transfer pricing risks
- Remedial measures for immediate or future implementation
- Plan for any integration
- Address any necessary adjustments to ensure compliance
Significance of Transfer Pricing Due Diligence
Availing transfer pricing due diligence services in the UAE is critical during M&A transactions. The due diligence process helps MNEs identify and manage transfer pricing risks associated with the target company.
Not conducting proper transfer pricing due diligence may increase the risk of significant tax assessments, penalties, and reputational damage.
Transfer pricing due diligence also lays the foundation for analyzing potential future opportunities for policy integration once the acquisition is complete. We can help you with performing transfer pricing due diligence in the UAE so that you may not worry about any risk during an M&A or restructuring.
Due Diligence Checklist for Transfer Pricing in UAE
If you are planning an M&A activity, go through the following checklist to ensure that transfer pricing is being taken into consideration:
- Evaluate whether formal transfer pricing policies are in place
- Review transfer pricing documentation
- Assess country-by-country reports
- Review the existing legal agreements for intercompany transactions
- Conduct an in-depth analysis to determine if transfer pricing risks
Tax Gian Offers the Best Transfer Pricing Due Diligence Services
MNEs need to critically examine the transfer pricing implications of an M&A or restructuring activity. Conducting transfer pricing due diligence in the UAE will help you comply with relevant tax laws and regulations and navigate potential risks. Tax Gian provides reliable transfer pricing due diligence services in the UAE so that you can avoid any risks during an M&A activity.
We can also help you design a transfer pricing structure and help you with transfer pricing assessment, documentation and benchmarking study services. Tax Gian and its associate Jitendra Chartered Accountants (JCA) have been serving companies in the UAE for more than two decades. Associating with a highly experienced company providing transfer pricing services in the UAE will help you navigate the complex corporate tax landscape.