UAE Transfer Pricing Audits Pose Challenges for Multinationals

The first arm’s-length transfer pricing audits in the United Arab Emirates are coming this year, with unique challenges for companies that just wrapped up their first year under the UAE’s new regime in 2024.

The country’s Federal Tax Authority has been bulking up on expertise to carry out the audits. Companies in response are being advised that careful planning and documentation are essential.

The UAE’s program comes with some wrinkles not often found in other countries. In addition to making sure transactions with entities in other countries are made at arm’s length, UAE taxpayers also have to make sure that ...