UAE Transfer Pricing Disclosure: What You Need to Know

The FTA has updated the format of the UAE Corporate Tax return, which now has a specific portion on Transfer Pricing (TP) related disclosure. This article gives an overview and highlights critical items in the said portion.

The Origin

The requirement of the TP disclosure form was initially announced in the Federal Decree-Law No. 47 of 2022. Article 56 of the said Decree provides for furnishing along with the tax return 'disclosure containing information regarding the Taxable Person’s transactions and arrangements with its Related Parties and Connected Persons in the form prescribed by the Authority.'

The Blueprint

Subsequently, in October 2023, the FTA issued a comprehensive TP guide, including a blueprint of the TP disclosure form. The guide indicated that the key contents of the TP disclosure form would include the nature of controlled transactions, value of controlled transactions, details of related parties, TP methods, etc. The timeline for furnishing the form was the same as the tax return, i.e., within nine months from the end of the tax period.