Transfer pricing refers to the mechanism used to determine the value of intragroup transactions between affiliated companies. It is common for affiliated companies to sell goods and/or services, regardless of whether they are located in the same or separate jurisdictions and are under the same ownership or control.

As the UAE is one of the lowest tax jurisdictions, with a 5% VAT and no corporate income tax, it is the economic heart of a great number of companies, whose operations are centralized here. Since the United Arab Emirates signed the Base Erosion and Profit Shifting (BEPS) framework of the Organization for Economic Co-operation and Development (OECD) in May 2018, there have been significant advancements in transfer pricing over the past two years.

ElucidationAcc is able to provide consulting services to our clients in order to optimize the transfer pricing mechanism for the group of companies by recommending reorganization, if necessary, and employing the most appropriate transfer pricing method.