Related Party Transaction Review — Clear, Compliant, Commercially Sound
A targeted review of related party transactions to assess transfer pricing risks, document arm’s-length positions, and prepare practical recommendations for corporate tax and VAT compliance in the UAE.
Overview
AL SAHRAA conducts focused reviews of related party transactions to identify tax and documentation risks and recommend commercial, defensible positions. Our approach combines transaction mapping, benchmarking where appropriate, and review of existing contracts and transfer pricing policies. We highlight gaps relative to UAE corporate tax and VAT expectations and produce clear, prioritized remediation steps. Deliverables include a concise report, suggested documentation templates, and next-step guidance to support financial statements, tax filings, or audits.
What to prepare
- Intercompany agreements and service contracts
- Invoices and pricing records for related party transactions
- Financial statements and management accounts
- Transfer pricing policy or prior benchmarking reports (if any)
- Organizational chart showing related entities and ownership
- VAT registration certificates and recent VAT returns (if applicable)
- Correspondence or emails evidencing commercial terms
How the process works
- Initial engagement and scope definition tailored to transaction types and entities
- Collect and review contracts, pricing policies, and intercompany agreements
- Map transactions and assess arm’s-length indicators and tax/VAT implications
- Identify documentation gaps and recommend remediation or restructuring options
- Deliver report with findings, risk ranking, and practical documentation templates
Why clients choose AL SAHRAA
- Admin-reviewed quotations before you proceed.
- Document coordination and progress tracking in one portal.
- Support for business, compliance, visa, insurance, and IT-related requests.
- Clear request history, updates, and delivery follow-up.
Frequently asked questions
What is a related party transaction review and why do I need one?
A related party transaction review assesses whether transactions between connected entities are commercially priced and properly documented to meet UAE corporate tax and VAT expectations. It helps reduce audit risk and supports defensible tax positions.
Will you provide transfer pricing benchmarks?
Where appropriate and within scope, we can source benchmarking evidence or explain alternative approaches when benchmarks are limited, and recommend practical documentation to support pricing.
How long does a typical review take?
Timing depends on transaction complexity and document availability; most focused reviews are completed in 2–4 weeks after receiving requested records.
Can you help implement remediation actions?
Yes. We provide prioritized remediation steps, template agreements and can support implementation or liaise with advisors to adopt recommended changes.
Do related party reviews cover VAT risks as well as corporate tax?
Yes. Our review considers both corporate tax (transfer pricing) and VAT implications, including whether transactions are taxable, zero-rated or subject to special VAT rules between related parties.
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