Nowadays, many businesses operate across borders. They trade goods, services, or technology within their related companies (connected persons or related parties) located in different countries.
Without clear pricing rules, businesses risk audits, legal actions, and disputes. Worse, they could break the law without even knowing and attract penalties.
That’s where Tax Gian’s transfer pricing policy drafting and review services help. Our transfer pricing consultants in the UAE help companies set clear pricing rules and methods that follow the law and reduce risk.
What Is a Transfer Pricing Policy in the UAE?
A transfer pricing policy is a document that explains how a company decides the prices for transactions between its connected persons and related parties or branches or subsidiaries in different countries. These could include business activities like:
- Selling goods between offices
- Paying for shared services
- Charging for intellectual property
- Internal loans or royalties
The goal is to make sure these prices follow the “arm’s length principle.” That means the prices should be similar to what unrelated companies would agree on in the open market.
Why Do You Need Transfer Pricing Policy Drafting Services?
You need transfer pricing policy services for:
- Understanding local and international tax rules
- Picking the right pricing methods
- Proving that your prices are fair
- Keeping records to show authorities
This is all done by transfer pricing consultants in Dubai, like Tax Gian, to help businesses. They build a detailed and reliable policy that works for your company’s structure, transactions, and risks.
What’s Included in the Drafting Process?
Here’s how the transfer pricing policy drafting services offered by transfer pricing consultants in the UAE usually work:
- Study the Tax Rules
Professionals like Tax Gian first look at the country’s tax laws. For example, in the UAE, the new corporate tax law has strict transfer pricing requirements. These follow OECD standards, which are accepted worldwide. - Map All Internal Transactions
They list every transaction between related parties. This includes goods, services, loans, royalties, and more. Each must be priced fairly. - Do Functional and Economic Analysis
Our experts compare what each related party does—what functions they perform, what assets they use, and what risks they take. - Choose a Pricing Method
Based on the analysis, they select a pricing method. Common methods include:Comparable Uncontrolled Price (CUP)
- Resale Price Method
- Cost Plus Method
- Profit Split Method
- Transactional Net Margin Method (TNMM)
- Write the Policy Document
The final policy includes details on:
- All controlled transactions
- The pricing method and why it was chosen
- Market data used
- Functional and risk analysis
- Prepare Supporting Documentation
A firm policy also includes files like:
- Local File (details of transactions within one country)
- Master File (global group info)
- Country-by-Country Report (if required)
What Are Transfer Pricing Policy Review Services?
Once you have a policy, you can’t just forget about it. Tax laws change; so do business operations. Policy review services by transfer pricing consultants in Dubai help you keep your policy updated and effective.
Review experts check if your current policy still meets legal rules and fits your business model. They:
- Spot gaps in your current policy
- Update methods if market conditions change
- Ensure all documents are ready in case of an audit
Key Benefits of Drafting & Review Services
- Avoid Penalties
Many countries have strict penalties for non-compliance. A strong policy reduces that risk. - Handle Tax Audits Better
With clear records and justifications, you’re better prepared if tax authorities come knocking. - Build Credibility
Having a policy shows that your business plays by the rules, which helps in global partnerships and financing. - Stay Updated
As your business grows or enters new markets, the policy needs updates. Review services make sure you’re always in line with current laws. - Save Time and Effort
Professionals know what they’re doing. Letting them handle the complex parts lets you focus on your core business.
When Should You Update Your Transfer Pricing Policy?
- When starting new transactions with related parties
- After entering a new market or country
- When tax laws change
- If there’s a change in your company’s structure or operations
Why Choose Tax Gian as your Transfer Pricing Consultant?
Transfer pricing consultants in Dubai are numerous; however, you can’t trust just anyone when it comes to services that directly affect your business. Tax Gian can be your best choice with;
- Strong knowledge of local and global tax rules
- Experience in all types of analysis
- Ability to prepare benchmark studies
- Clear communication and simple procedures
- Ongoing support
