What is
Transfer Pricing?
Transfer pricing refers to the framework used to set arm’s length prices for controlled transactions, which may involve the transfer of goods, services, loans, or intangible assets between related parties. These guidelines are based on internationally accepted OECD principles and aim to ensure that such transactions reflect fair market value.
By applying arm’s length pricing, businesses can prevent artificial shifting of profits across jurisdictions to reduce tax liabilities. This practice not only ensures tax fairness but also supports the integrity of the tax system, especially as regulations in jurisdictions like the UAE continue to evolve.
Fair pricing for related-party deals.
OECD rules prevent profit shifting.
Ensures fairness in evolving tax laws.