Related Party Transaction Review — Transfer Pricing & Documentation for UAE Businesses

Introduction

Related party transactions can create operational and tax risks if not properly documented and priced. For UAE businesses operating in Dubai, Ajman and beyond, a focused Related Party Transaction Review helps identify transfer pricing exposures, gaps in intercompany agreements and missing documentation to support corporate tax compliance in the UAE.

Key points

Identify transactions in scope: management fees, cost allocations, financing, royalties, goods and services between related entities.

Review transfer pricing policies and comparability analysis against UAE practice and international guidance.

Assess intercompany agreements (intercompany services, loan agreements, distribution agreements) for completeness and commercial substance.

Evaluate related party documentation, supporting invoices and allocation methodologies with regard to corporate tax compliance UAE requirements.

Recommend remediation steps: documentation fixes, agreement amendments, pricing adjustments and record retention best practices.

What is a Related Party Transaction Review?

A targeted engagement that maps related parties, catalogues intercompany flows, examines agreements and pricing, and highlights tax and documentation risks specific to your UAE operations.

Why this matters in the UAE

UAE corporate tax and transfer pricing expectations require businesses to demonstrate that related‑party pricing is arm’s length and supported by contemporaneous documentation. Regulators and auditors increasingly scrutinise intercompany arrangements, especially where operations span free zones, mainland Dubai, Ajman and other Emirates.

Which transactions are typically in scope?

Intercompany sales of goods and services

Management and shared services allocations

Intra‑group financing and guarantees

Royalties and licensing charges

Cost sharing and centralised procurement

What our review covers

Scoping and identification of related parties and transactions

Document review: intercompany agreements, invoices, transfer pricing policies and prior studies

Preliminary benchmarking and risk rating of pricing and documentation

Practical remediation plan with prioritised actions to reduce tax and documentation risk

How we work (typical steps)

1. Kick‑off and data request 2. Transaction mapping and sample testing 3. Agreement and documentation review 4. Pricing and comparability assessment 5. Findings report and remediation recommendations 6. Support for documentation updates and implementation

Deliverables you can expect

Executive summary of risks and exposures

Detailed findings with examples and evidence gaps

Prioritised remediation roadmap and recommended agreement wording

Templates for contemporaneous documentation and transfer pricing memos

Timing and indicative scope

Engagement timelines depend on complexity and volume of transactions. Small to medium reviews often take several weeks; larger group reviews take longer. Cost varies by scope—AL SAHRAA provides tailored quotes after an initial scoping call.

FAQs

Q: Will you produce a full transfer pricing study? A: We tailor the output to your needs. A focused review highlights risks and remediation; we can expand to a full transfer pricing study if required.

Q: Do you handle cross‑Emirate issues (Dubai, Ajman, etc.)? A: Yes. Our review considers differences in operations across Emirates, free zones and mainland entities to ensure consistent compliance with UAE corporate tax and transfer pricing principles.

Q: Can you help implement recommended changes? A: Yes. We support drafting intercompany agreements, updating policies and preparing contemporaneous documentation.

Call to action

To get a tailored quote and begin a related party transaction review, contact AL SAHRAA Businessmen Services LLC with a brief description of your group structure, primary intercompany flows, and key jurisdictions (e.g., Dubai, Ajman). Request a quote today to understand exposure and next steps for corporate tax compliance in the UAE.