Businesses operating across multiple entities, jurisdictions, or corporate structures may engage in transactions with related parties. These transactions can include the sale of goods, provision of services, financing arrangements, management fees, royalties, intellectual property arrangements, cost-sharing agreements, and other commercial activities.
Transfer pricing refers to the pricing of transactions between related parties. These arrangements may affect taxable income, financial reporting, corporate tax obligations, and regulatory compliance. As transfer pricing requirements continue to develop, businesses need clear policies, reliable documentation, and a structured approach to managing related-party transactions.
Forth ME Auditors L.L.C. provides professional Transfer Pricing Advisory services in Dubai and across the UAE. We help businesses assess related-party transactions, understand applicable transfer pricing requirements, develop appropriate transfer pricing policies, prepare supporting documentation, and improve compliance readiness.
Our approach combines financial analysis, accounting expertise, tax advisory knowledge, business understanding, and practical commercial insight. We work with management teams to understand the organisation’s structure, related-party arrangements, business activities, financial information, and transaction risks.
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Transfer pricing relates to the terms and pricing applied to transactions between related parties. Related parties may include companies within the same group, parent companies, subsidiaries, branches, entities under common control, or other parties with a defined relationship.
Examples of related-party transactions may include:
Sale and purchase of goods
Management and administrative services
Technical and support services
Shared service arrangements
Intercompany financing
Loans and interest arrangements
Intellectual property licensing
Royalty payments
Use of trademarks and brands
Cost-sharing arrangements
Business restructuring transactions
Transfer of assets or business functions
Transfer pricing requirements generally focus on whether related-party transactions are conducted on terms consistent with the arm’s length principle.
The arm’s length principle generally requires related-party transactions to be priced in a manner consistent with the terms that independent parties may agree under comparable circumstances.
Applying this principle may require an assessment of:
The nature of the transaction
Functions performed by each party
Assets used
Risks assumed
Commercial terms
Market conditions
Industry characteristics
Financial performance
Available comparable information
The appropriate analysis depends on the specific transaction, business model, group structure, and available financial information.
A transfer pricing risk assessment can help organisations identify related-party transactions, understand potential compliance requirements, and prioritise areas requiring further review.
Our services may include:
Review of group structure
Identification of related parties
Review of related-party transactions
Assessment of transaction values
Review of existing transfer pricing practices
Identification of potential documentation gaps
Assessment of transfer pricing risks
Review of financial information
Development of an action plan
This assessment can provide management with a clearer understanding of current practices and areas that may require attention.
Businesses may enter into a wide range of transactions with group companies and other related parties. These arrangements should be clearly understood, appropriately documented, and supported by relevant financial information.
Our review may include:
Identification of related-party transactions
Review of transaction agreements
Assessment of transaction terms
Review of pricing arrangements
Analysis of transaction volumes
Review of management fees
Assessment of intercompany services
Review of financing arrangements
Analysis of related-party balances
Review of supporting documentation
We help businesses develop a more complete and organised view of their related-party activities.
A clear transfer pricing policy can support consistency across group transactions and provide guidance for management, finance, and tax teams.
Our support may include:
Review of business activities
Assessment of group operating models
Identification of related-party transactions
Review of existing pricing practices
Development of transfer pricing principles
Definition of pricing methodologies
Documentation of transaction terms
Development of internal procedures
Establishment of review responsibilities
Policy implementation guidance
Transfer pricing policies are tailored to the organisation’s business model, transaction types, operating structure, and applicable requirements.
Functional analysis is an important part of transfer pricing. It considers the activities performed, assets used, and risks assumed by each party involved in a related-party transaction.
Our functional analysis may review:
Business functions
Management responsibilities
Operational activities
Sales and marketing functions
Manufacturing or service activities
Research and development activities
Assets used
Intellectual property
Financial risks
Market risks
Operational risks
This analysis helps establish a clearer understanding of the economic roles of the parties involved.
Different transfer pricing methods may be considered depending on the nature of the transaction, availability of information, and level of comparability.
The assessment may consider methods such as:
Comparable Uncontrolled Price method
Resale Price method
Cost Plus method
Transactional Net Margin Method
Transactional Profit Split Method
The selection of an appropriate method depends on the specific circumstances of the transaction. The analysis may consider available comparable information, functions performed, risks assumed, and the reliability of financial data.
Benchmarking may be used to assess whether related-party pricing or financial results are consistent with relevant market information.
Our support may include:
Review of transaction characteristics
Identification of relevant comparability factors
Assessment of available market information
Review of industry data
Financial ratio analysis
Profitability analysis
Review of comparable businesses
Assessment of comparable transactions
Documentation of benchmarking assumptions
The availability and quality of comparable information may vary depending on the industry, transaction type, and geographic market.
Group companies may provide management, administrative, technical, financial, information technology, human resources, or other services to related entities.
Our advisory support may include:
Review of intercompany service arrangements
Assessment of services provided
Review of service agreements
Analysis of service costs
Assessment of cost allocation methods
Review of management fee arrangements
Evaluation of relevant pricing approaches
Documentation of service benefits
Review of supporting information
Clear documentation can help organisations demonstrate the nature and commercial basis of intercompany services.
Related-party financing may include loans, advances, guarantees, cash-pooling arrangements, and other financial transactions.
Our support may include:
Review of intercompany loans
Assessment of financing terms
Review of interest arrangements
Analysis of repayment conditions
Review of financial capacity
Assessment of relevant risks
Review of financing agreements
Documentation of transaction terms
Financial analysis of related-party funding
The analysis is based on the specific financing arrangement and relevant financial information.
Businesses may enter into related-party arrangements involving trademarks, brands, technology, software, patents, business processes, or other intellectual property.
Our services may include:
Review of intellectual property arrangements
Assessment of ownership and use
Review of licensing agreements
Analysis of royalty arrangements
Review of related-party payments
Assessment of functions and risks
Review of supporting financial information
Documentation of relevant considerations
The scope depends on the nature of the intellectual property, business activities, and commercial arrangements.
Transfer pricing documentation helps organisations demonstrate their understanding of related-party transactions and support the basis of their pricing arrangements.
Our documentation support may include:
Group structure information
Business and industry overview
Description of related-party transactions
Functional analysis
Financial analysis
Transfer pricing method assessment
Benchmarking information
Review of intercompany agreements
Supporting schedules
Documentation of assumptions and conclusions
The documentation scope is tailored to the organisation’s requirements and applicable regulations.
Transfer pricing compliance may involve reporting obligations, documentation requirements, related-party disclosures, and ongoing monitoring.
Our services may include:
Review of applicable requirements
Assessment of compliance obligations
Review of related-party disclosures
Preparation of supporting information
Transfer pricing documentation support
Review of compliance timelines
Assistance with internal reporting
Ongoing transaction monitoring
Compliance readiness assessments
We help businesses establish organised processes for managing transfer pricing information throughout the financial year.
Effective transfer pricing planning considers business operations, group structures, commercial arrangements, financial performance, and applicable requirements.
Our planning support may include:
Review of existing arrangements
Assessment of business changes
Evaluation of new related-party transactions
Review of group operating models
Assessment of financial implications
Transfer pricing policy development
Transaction planning support
Documentation planning
Ongoing monitoring considerations
The objective is to support commercially appropriate arrangements while improving transparency and compliance readiness.
Businesses in the UAE may have related-party transactions involving local group entities, overseas subsidiaries, parent companies, branches, or other connected parties.
Our UAE Transfer Pricing Advisory services may support:
UAE corporate groups
Multinational businesses
Family-owned business groups
Free zone entities
Mainland companies
International groups operating in the UAE
Businesses with cross-border transactions
Companies undertaking restructuring
Growing organisations with multiple entities
We help organisations understand their related-party arrangements and develop practical processes for managing transfer pricing responsibilities.
Transfer pricing is not always a one-time exercise. Changes in business operations, group structures, transaction volumes, financial performance, or regulatory requirements may affect existing arrangements.
Our ongoing support may include:
Periodic review of related-party transactions
Review of transfer pricing policies
Monitoring of transaction activity
Annual documentation updates
Review of financial results
Assessment of business changes
Review of intercompany agreements
Compliance support
Management guidance
Regular reviews can help businesses maintain relevant and consistent transfer pricing practices.
Professional transfer pricing support can help organisations:
Understand related-party transaction requirements
Improve transfer pricing governance
Develop consistent pricing policies
Strengthen supporting documentation
Identify potential transfer pricing risks
Improve financial transparency
Support corporate tax compliance
Improve readiness for regulatory review
Support cross-border business activities
Manage complex group transactions
Forth ME Auditors combines expertise in accounting, audit, financial reporting, corporate tax advisory, business analysis, and financial controls.
Our approach is:
Tailored to your business structure
Based on a clear understanding of related-party transactions
Focused on practical implementation
Supported by structured financial analysis
Designed to improve transparency and compliance readiness
Aligned with your commercial and operational objectives
We help businesses develop clear and supportable transfer pricing practices while maintaining a practical focus on business operations.
Transfer pricing refers to the pricing and terms applied to transactions between related parties, such as companies within the same corporate group.
The arm’s length principle generally requires related-party transactions to be conducted on terms consistent with those that may be agreed between independent parties under comparable circumstances.
Businesses with related-party transactions, group companies, subsidiaries, branches, common ownership structures, intercompany services, financing arrangements, or cross-border activities may require transfer pricing assessment and advisory support.
Transfer pricing may apply to the sale of goods, provision of services, management fees, loans, interest, royalties, intellectual property arrangements, cost-sharing agreements, and other related-party transactions.
Yes. We can review existing policies, related-party transactions, intercompany agreements, financial information, documentation, and areas requiring improvement.
Yes. We can assist with the preparation and review of supporting documentation, functional analysis, financial analysis, transaction information, benchmarking considerations, and related records based on the applicable requirements.
Clear transfer pricing policies, reliable financial information, and well-organised documentation can help businesses manage related-party transactions with greater transparency and confidence.
Forth ME Auditors L.L.C. provides professional Transfer Pricing Advisory services in Dubai and across the UAE, helping businesses assess related-party transactions, develop practical transfer pricing policies, strengthen documentation, manage compliance requirements, and support sustainable business growth.
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