Comprehensive Transfer Pricing Solutions For Global Compliance And Optimization
Transfer Pricing Services
My Taxman is a company that specializes in providing you with the best transfer price solutions that fit your business. We are experts in international transfer pricing regulations and whether you are a multinational corporation or a local entity involved in cross-border transactions, we help you comply with these regulations and optimize your tax structure efficiently. The UAE’s changing tax landscape requires proactive compliance with transfer pricing regulations.
Transfer Pricing
What Is Transfer Pricing?
It is the pricing of goods, services or intellectual property exchanged between related entities within the same organization, especially between entities in different countries. For that, figuring out how profits and expenses are allocated across jurisdictions, and therefore how taxable income is apportioned across jurisdictions.
Profit Allocation
Avoids tax evasion by distributing profits equitably among different jurisdictions.
Features
Key Aspects Of Transfer Pricing In UAE:
Economic Substance Regulations (ESR):
In the UAE, entities must show economic substance for relevant activities.
Country-by-Country Reporting (CbCR):
CbCR is required of multinational corporations whose combined revenues exceed a specified threshold.
Arm’s Length Principle:
Transactions between related entities must be at market prices, just as transactions between independent parties.
Documentation Requirements:
To justify their pricing policies, businesses are required to maintain transfer price documentation such as master files and local files.
Benefits
Importance Of Transfer Pricing:
Compliance with Regulations
It’s rules have been implemented by governments around the world to close the gaps in foreign taxation and create fair distribution of the taxes.
Tax Optimization
Its strategies will diminish the danger of twofold assessment and improve all-out duty adequacy.
Transparency
Good pricing practice gives transparency, reducing the risk of litigation with tax authorities.
Alignment with OECD Guidelines
The Organization for Economic Co-operation and Development (OECD) controls global transfer price practices with guidelines.
Transfer Pricing In UAE
In line with international standards the UAE premises have introduced transfer pricing regulations. It’s part of the UAE’s commitment to being a transparent and compliant environment for businesses to be registered in, and in compliance with tax regulations.
Approach
Techniques Of Transfer Pricing
To comply and maximize tax outcomes, the right transfer pricing techniques must be implemented. Below are the common methods:
Comparable Uncontrolled Price (CUP) Method:
Compares the price charged in a comparable party transaction to a price charged in a transaction between unrelated parties.
Resale Price Method:
It determines the transfer price of a product by subtracting enough gross margin from the resale price of a product. Used in distribution arrangements.
Cost-Plus Method:
It adds appropriate profit to the cost incurred by the supplier in a controlled transaction.It is suitable for manufacturing and service based transactions.
Transactional Net Margin Method (TNMM):
Is an evaluation of the net profit margin in comparison to an appropriate base, namely sales or costs, in transactions with related parties.Very applicable in complex transactions.
Contact Us
A good transfer price package needs a partner with good experience in this field and also a commitment to quality. We do more than compliance, we provide value driven solutions that help your business thrive in today’s competitive environment.
